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Implications of India – Sri Lanka connectivity

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By Neville Ladduwahetty

During President Ranil Wickremesinghe’s India visit in July 2023, five Memorandums of Understanding (MOU) were signed by India and Sri Lanka to establish physical connections between the two countries. This was followed more recently by the launch of the Unified Payments Interface (UPI) – a mechanism that claims to reduce the cost of financial transactions between the two countries. It is now reported that India is exploring the possibility of Indian Rupee investments in Sri Lanka (Ceylon Today, February 28, 2024).

IMPACT of UNIFIED PAYMENT INITIATIVE (UPI)

It is reported that during the course of an interview with WION’s diplomatic correspondent, a State Minister is reported to have stated: “The UPI is beneficial to both countries. If you look at the events in Sri Lanka and what took place one and a half years ago, it mainly started out as a foreign exchange crisis, mainly a lack of dollars. So, we have to ensure that our dollar dependency is reduced. Now for example, our biggest tourist market is India and if we can collect the tourist remittances from India and we import about $ 5.5 billion worth of goods from India and we use those … pay in Indian rupees for the Indian imports, then we will reduce our dollar dependence. And it also becomes very flexible and very easy for the Indians to travel to Sri Lanka and then they pay in Indian rupees”. (Sunday Island, February 25, 2024).

COMMENT

Out of a total of 1.48 million tourists who arrived in 2023, the number from Indian tourists amounted to only 302844. This represents 20 % of the total. The revenue from tourism for the year 2023 was USD 2.1 billion. Therefore, on an average, earnings from Indian tourists would be 20% of USD 2.1 billion. This amounts to USD 420000. This represents only 7.6 % of the USD 5.5 billion needed for imports from India, meaning that Sri Lanka would need to acquire an additional Indian rupee equivalent of USD 5.08 billion to meet the cost of imports (ECONOMYNEXT, January 1, 2024 & January 5, 2024).

The net effect of this is that Indian rupees earned from Indian tourists would not be able to even make a dent to pay for imports even though tourist arrivals in 2023 were double the number in 2022. Under the circumstances, even if the number of Indian tourists were to significantly increase further, the benefits to India under UPI would far outweigh benefits to Sri Lanka because Sri Lanka would still have to find nearly 92% of the USD 5.5 billion needed for imports from India.

IMPACT of INDIAN RUPEE INVESTMENTS

It is reported that the Indian government is actively exploring the possibility of facilitating Indian Rupee investments for Indian Companies in Sri Lanka. The report states:

“In the fiscal year 2023, the Reserve Bank of India (RBI)granted permission for international trade for invoicing and payments to be conducted in Indian Rupees. This move allowed for exports and imports to be denominated and invoiced in Rupees, with trade transactions settled in the currency. The RBI’s decision aims to stimulate global trade growth, particularly Indian exports, while also working towards the internationalization of the Indian Rupee” (Ceylon Today, February 28, 2024).

“Last year, Sri Lanka officially recognized the Indian Rupee as a designated currency, ending trade settlements between the two countries to be conducted in Rupees” (Ibid).

“Currently, Indian Investors typically engage in investments in Sri Lanka using international currencies like the US Dollar, which involves additional complexities and conversion costs. The transition to Rupee investments is expected to streamline market entry for Indian companies, with the Ministry of External Affairs reportedly advocating for this transition” (Ibid).

The report finally states: “The push for Rupee investments aligns with India’s broader vision to elevate its currency to the status of hard currency in the future, potentially leading to inclusion in the IMF’s SDR basket and bolstering its foreign exchange reserves. This move is anticipated to benefit Indian firms with significant investments in Sri Lanka, such as the Adani Group’s development projects in the country’s port and power sector” (Ibid).

COMMENT

When Sri Lanka calls for competitive bids for Projects it is understood that bids would be based on international currencies so that all bids are evaluated on a level playing field. If Indian investors such as Adani or any other, are given a special privilege and permitted to submit proposals based on Indian Rupees which is still not recognised as an internationally recognised currency, it would amount to an act of discrimination. Furthermore, it would amount to an unsolicited offer that puts other bidders at a disadvantage.

In addition, any Dollar inflows into Sri Lanka would add to the reserves of Sri Lanka and could be used for debt payments. On the other hand, any Indian Rupee inflows, even if considered to be part of Sri Lanka’s reserves, would serve little or no purpose for international transactions.

Therefore, if Sri Lanka fails to recognize these implications and caves under Indian pressure to recognise Indian Rupees for investments in Sri Lanka for the sake of connectivity, it would be a grave injustice to the sovereign rights and independence of the People of Sri Lanka with consequences not only to Sri Lanka’s relations with other countries, but also the start of an ever widening process for India to financially colonise Sri Lanka.

PHYSICAL CONNECTIVITY

Of the five MOUs signed in July 2023 between the President of Sri Lanka and Prime Minister of India, those relating to establishing physical connectivity are:

(1) Establishing a multi-product pipeline; (2) Establishing a high capacity power grid (3); Establishing a road connection between the two countries to develop access to ports of Trincomalee and Colombo. While connectivity in respect of energy has benefits during times of relative peace, there is no denying that it exposes Sri Lanka and its People to vulnerabilities at times of geopolitical tensions.

Establishing physical connections in respect of a pipeline for petroleum products and a power grid between India and Sri Lanka could be disrupted at any time as experienced by Europe. For instance, the pipelines that had delivered natural gas and petroleum products from Russia were sabotaged through a series of clandestine bombings that resulted in subsequent underwater gas leaks on the Nord Stream 1 and Nord Stream 2. Following the sabotage, “the European Commission has unveiled an ambitious and far-reaching plan, aptly coined “REPower EU”, to achieve full energy independence from Russia by 2027″ (euronews). Earlier, the pipeline had delivered 45% of natural gas from Russia to Europe; a dependence that the US had perceived as being hostage to Russia”.

Having learnt the cost of dependence for its energy needs, Europe is now scrambling to become independent. Sri Lanka on the other hand, is opting for the opposite for its energy needs because an underwater multi-product pipeline and a power grid connection from India to Sri Lanka would amount not only to dependence but also to vulnerabilities similar to what Europe experienced. Furthermore, it would give India opportunities to exercise control over Sri Lankan strategic interests and internal affairs in respect to India’s geostrategic interests.

Although access to ports of Trincomalee and Colombo through a land bridge connecting India and Sri Lanka is reported to have been initiated by Sri Lanka, it is pertinent to revisit its practicality in the light of India’s future development plans. Currently, the majority of exports from the West Coast of India are containerised and have ready access to Colombo by sea. In contrast, containerized exports from the East Coast are limited mainly to Chennai in the East Coast. The rest is mainly bulk cargo. Therefore, the need for access to Colombo and Trincomalee must be considered from the context presented in the ADB Report cited below.

According to an ADB South Asia Working Paper, India is seriously considering the “Development of its East Coast Economic Corridor (ECEC) and Vizag – Chennai Industrial Corridor (VCIC): Critical Issues of Connectivity and Logistics” (2017).

Its Introduction states: “ECEC is an example of an integrated economic development initiative. The key idea behind the corridor is port-based industrial development along the eastern coastal belt of India, in alignment with the goals of the Sagarmala initiative and integration of India’s industrial clusters with value chains extending to Southeast Asia and East Asia”

Paragraph 27 states: “While textiles and automobiles and automotive part require containerized solutions, these industries are clustered around Chennai, which is the only port in ECEC that handles a significant number of containers. The logical outcome of such an industrial orientation is that, with the exception of Chennai and Kattupali, the main focus of ECEC ports is break-bulk and raw materials such as petroleum, oil and lubricant, coal, iron ore, fertiliser and agricultural raw materials”.

Paragraph 29 states: “The VCIC final report predicts an expansion in industrial output of approximately 3.to 7.5times over the next 25 years under different scenarios. Such expansion will create significant additional demand for containerized cargo solutions in the corridor’s ports …” (ibid).

COMMENT

Even with projected expansion of containerised cargo from the VCIC in the East Coast of India, since sea transport by feeder ships is cheaper than road transport, the tendency would to be seek access to Hambantota as at present and to Trincomalee in the future, thus making a bridge across the Palk Strait a ridiculous symbol of connectivity other than for human traffic with all its attendant threats arising from drug trafficking and other hazards associated with human activity.

CONCLUSION

The President of Sri Lanka, political leaders and now the leaders of the JVP/NPP have, whenever the opportunity presented itself, consistently assured India that Sri Lanka would not undertake any measures that would threaten India’s security. On the other hand, the clear evidence is that Sri Lanka is prepared to go to any extent, even at the cost to its own interests, its independence and its universal right of self-determination, to fulfil this assurance. Furthermore, are the expressions of appreciation for the financial aid granted to Sri Lanka, not realising that at the end of the day, foreign relations are most often influenced by self-interest and not by sentiment.

For instance, starting with the 13th Amendment, that continues to be, a dead weight to Sri Lanka’s development and now to Financial and Physical Connectivity which are expressions of how far Sri Lanka is prepared to commit to becoming a part of India’s economically expanding bandwagon with no regard or concern for the dignity and independence of the People of Sri Lanka. The latest is the attempt by India’s Ministry of Mines to strengthen India’s critical minerals supply chain through the acquisition of mineral assets in Sri Lanka.

A report by The Indian Express cited by The Island states: “India’s interest in Sri Lanka’s graphite coincides with the Sri Lankan Government’s active pursuit of Indian companies for graphite mining in the country”. Quoting a Member of the Sri Lankan Government, the report states: “We have the best graphite in the world. Now Indian companies will be manufacturing electric vehicles. One of the large components for electric batteries is graphite. We used to have about 30,000 graphite mines. So, there are a lot of opportunities with the expertise and technology these Indian Companies have, I think they should seriously look at Sri Lanka” (March 5, 2024).

In view of the enthusiasm expressed by India to acquire mineral rights to mine graphite in Sri Lanka, it would be prudent for the Member of Parliament who is supportive of the prospect to be aware of the Supreme Court Judgment on the Eppawala Phosphate Extraction Case.

There is no denying that the warm cultural connectivity that Sri Lanka shares with India is buried in the mists of time. Although there have been threats to Sri Lanka’s interests, its independence and territorial integrity throughout its history, the cultural connectivity has persisted undisturbed. Despite this, the ongoing attempts at connectivity has to be viewed in the same vein as past threats which were to contain and colonise Sri Lanka. However, unlike in the past, today’s attempts to control and colonise Sri Lanka are based on modern techniques of Financial Control and Physical Connectivity that decidedly are to India’s advantage. It is therefore imperative that Governments of Sri Lanka exercise extreme caution in its Financial and Economic relations with India if it holds in trust the best interests of its People.



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Combining local resources,traditional knowledge and science to build a food-secure Sri Lanka

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World Food Day 2026: Innovating today for a better food future

by Dr. Kaushalya Wijayasekara

What will be on the Sri Lankan dinner table ten years from now? Will our children be able to get nutritious food at a price their families can afford? Will farmers be able to grow enough despite changing weather and rising costs? And how much of the food we produce will actually reach the consumer, instead of being lost or wasted along the way?

These questions can’t wait. A farmer faces unpredictable weather. A family faces rising food costs. Fruit goes unsold after a good harvest. Some children do not get enough nutrition. The future of food is tied to the future of Sri Lanka itself.

World Food Day 2026 is a chance to look beyond the immediate problems and ask whether we can build a food system that feeds our people well, gives farmers better opportunities, protects the environment and makes better use of what we already have. The answer can be yes, but we will have to think differently.

We are not starting from zero. Sri Lanka has diverse crops, fisheries, traditional food knowledge, indigenous varieties, research institutions, universities and a young generation able to create new solutions. What we need is to bring these together and act. Producing more will not secure our food future on its own. It will depend on how intelligently we produce, process, preserve, distribute and consume food.

Making more of what we already have

Innovation does not always mean inventing something new. Often it means finding better uses for the resources we have.

Sri Lanka grows traditional rice varieties, kurakkan, green gram, cowpea, jackfruit, breadfruit, cassava, sweet potato, coconut and palmyrah. All of them have great potential for modern, nutritious, value-added foods. Jackfruit and breadfruit can be made into flour and other convenient products. Traditional rice varieties can go into new foods that suit changing consumer needs. Palmyrah, with its strong cultural heritage, can create new income through better processing, packaging, quality assurance and market development.

The aim is to connect our traditional food knowledge with modern consumer needs and technology, while keeping our food heritage.

Stop wasting the food we produce

Reducing food loss and waste should be a major priority. Seasonal fruits such as mango, banana, papaya and pineapple can be lost in large quantities when production exceeds demand or when storage, transport and processing facilities are inadequate. With suitable technology, these fruits can become dried products, pulps, powders, beverages and other shelf-stable foods.

Agricultural and fisheries by-products are resources too. They could be turned into food ingredients, animal feed, bio-based products and other useful materials, which would move us toward a more circular food economy.

Technology alone is not enough. We need stronger local processing facilities, cold storage, efficient transport, collection centres and market information systems, especially close to where food is produced. Cutting food loss raises the value of what our farmers and fishers already produce.

Nutrition and food safety come first

Food security means more than having enough food. People also need food that is safe and nutritious.

Sri Lanka can develop affordable, nutritious foods from local pulses, grains, vegetables, fruits and fish. Children and other vulnerable groups should get particular attention. Schoolchildren in particular deserve a focus: safe, nutritious, locally sourced products for school feeding programs would support child nutrition, local farmers and domestic food industries at the same time.

Food safety must stay at the centre of food innovation. Good hygiene, quality control, laboratory testing, traceability and appropriate food safety systems are what make new products safe as well as attractive and nutritious.

A food system that can cope with climate change

Climate change is already affecting agricultural production, water availability, crop yields and food prices. We need food systems that can handle changing conditions. That means climate-resilient crops, efficient water use, soil and water conservation, better storage and resource-efficient food processing.

Traditional knowledge matters here. Generations of Sri Lankan farmers have developed practices suited to local climates and ecosystems. Combining that experience with modern science can give us solutions that fit local conditions and are sustainable. Technology alone will not build the future of food. Science, experience and local knowledge together can.

Give young people a bigger role

Sri Lanka’s universities have an important part to play in shaping our food future. Young people should be encouraged to identify real problems in the food system and work on practical solutions in areas such as food waste, sustainable packaging, nutrition, food safety, modernising traditional foods and digital technologies.

A good research project should not always end as a research paper. Where appropriate, research should be supported to move on to products, technologies, enterprises and community solutions. That needs stronger partnerships between universities and industry, along with mentoring, research funding, business support and market connections. If young researchers and entrepreneurs can turn their ideas into viable food innovations, both consumers and producers will benefit.

A pathway designed for Sri Lanka

We do not need to copy food-system models from other countries. We can build a pathway that suits our own resources, culture and needs. It would bring together local resources, traditional knowledge, scientific research, appropriate technology and entrepreneurship, with farmers, fishers, universities, research institutions, food industries, entrepreneurs and policymakers working side by side.

The goal goes beyond selling raw materials. We need to create more value, reduce waste, improve nutrition, generate jobs and strengthen rural livelihoods. This matters especially for small and medium-scale food enterprises, which can drive local economic development when they get the right technical, financial and market support.

The choices we make today

The food future will not create itself. It will be shaped by what we grow, what we research, what we process, what we consume and what we choose not to waste.

So, the question for World Food Day 2026 is this: what can we do today so that every Sri Lankan has safe, nutritious, affordable and sustainable food tomorrow?

The answers are already around us, in our farms, fisheries, food businesses, universities, laboratories and communities. We have the resources, the traditional knowledge, the scientific expertise and talented young people. What we need now is to connect them and act.

A better food future begins with the choices we make today.

Dr. Kaushalya Wijayasekara

Senior Lecturer, Department of Biosystems Technology, Faculty of Technology, University of Ruhuna

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20th Anniversary of Digampathana blast – the day Sri Lanka Navy cried

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Aftermath of the terror attack

By Admiral Ravindra C Wijegunaratne
WV, RWP and Bar, RSP, VSV, USP, NI (M) (Pakistan), ndc, psn, Bsc
(Hons) (War Studies) (Karachi) MPhil (Madras)
Former Navy Commander and Former Chief of Defence Staff
Former Chairman, Trincomalee Petroleum Terminals Ltd
Former Managing Director Ceylon Petroleum Corporation
Former High Commissioner to Pakistan

The Digampathana suicide truck attack on 16th October 2006 remains the deadliest single strike in Sri Lanka Navy history, leaving scars that time cannot erase.

It was a seemingly ordinary Monday morning on 16 October 2006, but the calm of that day would soon be shattered in a way none of us could have imagined. As the Commandant of the Naval and Maritime Academy and Flag Officer Commanding Naval Fleet at Trincomalee, I was aware that a number of my cadets were travelling that morning, part of a convoy of fifteen buses carrying naval personnel from Trincomalee, Colombo, and other bases, heading toward Dambulla to rendezvous with another group. The convoy also included trucks and escort vehicles, a routine movement planned and coordinated with the army to ensure the roads were clear. The morning started quietly. Some personnel greeted friends, handed over their weapons, or strolled to a nearby tea shop. It all seemed so ordinary—too ordinary for what would come next.

Sri Lanka Navy sunk LTTE Ships carrying arms, ammunition and warlike materials thousand miles away from Sri Lanka in Indian Ocean in September and October 2007.

By late morning, both convoys had reached the small ground at Digampathana, near the Sigiriya junction, and personnel mingled briefly, unaware that a carefully orchestrated act of terror was waiting. Then, suddenly, an empty half-truck veered directly into the convoy. It exploded with a ferocity I can still recall as if it were yesterday. Nuts, bolts, and high explosives tore through the air. Pandemonium erupted instantly. I later learned that 107 of our naval personnel were killed on the spot and another 153 critically injured. The scene was indescribable—bodies scattered, vehicles mangled, personal effects strewn across the ground. I remember later hearing that the head of the suicide bomber was recovered more than 100 meters away from the blast, a grim testament to the sheer force of the explosion.

I was in my office at the Naval and Maritime Academy when my mobile phone rang. A young midshipman from the 21st intake called, his voice trembling: “Sir, there was a huge explosion at the convoy point! Many are dead … my batch mate Wijesundara is among them.” I immediately jumped into my jeep with my escort Chief Petty Officer and driver and rushed to Digampathana, relying on every ounce of my driving skill to reach the scene. The journey, which usually took little more than an hour, felt endless that day, each passing mile weighed down by dread.

When I arrived, I was confronted with a sight that no training can prepare you for. The injured were being rushed to Dambulla Hospital, where doctors and nurses worked tirelessly, improvising in ways that saved lives despite the overwhelming chaos. I went back to the site after visiting the hospital. The remains of our naval personnel were scattered across the ground, and someone had begun collecting weapons and protective gear. I immediately contacted Surgeon Rear Admiral Nico Jayasekara and received his instructions: collect all body parts in separate bags and transport them to the Trincomalee Naval Hospital mortuary. This gruesome work had to be done with care and dignity, and it filled the icebox in my vehicle. Through DNA testing initiated by Rear Admiral Nico, we were able to identify every naval personnel lost that day, bringing some closure to grieving families.

The Navy Commander at the time, Vice Admiral Wasantha Karannagoda, was devastated. I had worked closely with him and knew how deeply he cared for his men. He ensured that the fallen were honoured with full ceremonial naval funerals at Welisara Naval Base, attended by families and comrades. Sixty-seven funerals were conducted in a single day—a number that still haunts me.

The Digampathana attack remains the largest single loss of naval life in our history. It was a day of sorrow, but also a day that reinforced our resolve. The tragedy galvanized the Navy to target the LTTE Sea Tiger wing with renewed determination and reshaped our maritime operations forever. Every time I think of that day, I remember not just the lives lost, but the courage, professionalism, and dedication of those who survived, those who treated the injured, and those who ensured the fallen were honored properly. May the souls of our naval hero’s rest in peace, their sacrifice guiding us and inspiring generations of naval personnel to come.

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‘Murder at Whitby Abbey’

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Tales of Mystery and Suspense – 24

I was intrigued by the title of a book I found in a book drop at the condominium of a friend, Murder at Whitby Abbey, and I brought it home with me though I will not be able to return it in the near future. It was described on the cover page as ‘a standout in the crowded medieval mystery field’, though I fear I do not know of other books in this field, apart from the Cadfael series, which I have dealt with earlier.

The book, by Cassandra Clark, is set during the reign of Richard II and has as a backdrop his precarious position, which led to his being replaced, and murdered, by his cousin Henry, who reigned as Henry IV. It is a gloomy book, the action taking place in the twelve days of Christmas leading up to the Epiphany. And the gloom is pervasive, even though this is supposed to be a time of festivity, with mummers performing, and many of those in the guest house where the heroine stays going to town to enjoy themselves, with much drinking and much music, which also fills the guesthouse.

The heroine Hildegarde is a nun, sent to try to acquire a relic being sold by Whitby Abbey, though this was also a penance set by the Abbot of the monastery that governed her abbess because she had had sex with a man. Soon after she and her companions reach the Abbey set high on a cliff, she finds that there are other bidders, and soon suspects that the hierarchy, not perhaps the Abbot who seems a weakling, but his rapacious bursar, is determined to make money, and not above creating false relics to sell to several aspirants.

After Hildegarde and her Cistercian companions – Whitby is a Benedictine Foundation – two monks, Gregory and Egbert, and a young priest Mark, reach the abbey, they find that Aelwyn, a monk they had met on their way to the guesthouse had died. This was in the apple store, and they realize, when they find the surplices of novices stuffed into the air vents, that he had been left to suffocate in the overwhelming scent of apples.

Clark

The Cistercians are asked to look into the death, perhaps because they are likely to get no cooperation from the Abbey folk, but perhaps because those in charge are keen to know what happened. And the infirmarer, an old monk, suggests Hildegarde talk to a man called Edred who worked for the bursar, and had been a friend of Aelwyn’s. But Edred too is killed, before he can keep an appointment he had made with Hildegarde, drowned in a pool near the farmhouse of the Abbey.

Meanwhile tensions arise between the fisherfolk and the abbey for the bursar wants to charge them for using the beach that technically belongs to the abbey to dry their fish and their nets. This leads to physical battles, when the guards used by the abbey, under the command it seems of the bursar whose determination to make money is not resisted by the abbot and the prior, try to storm the area where the fishermen live.

Hildegard finds out more about what had happened through two youngsters, one of whom Torold is the son of Aelwyn by a woman who worked as a prostitute for a cartel, and with whom Mark fell in love. The other works on the farm and had seen Edred meet someone near the pool, after which that someone left the place by himself. And the boy had also found in the pool a sort of dagger with the seal of the abbey.

He and his dog, and Torold who follows her, rescue Hildegarde from a man at arms who has waylaid her and tries to rape her earlier. Escaping into the abbey she was nearly been raped then by the bursar, but she managed to escape, in the process setting fire to him and the muniments room, which led, when he was rescued, to the discovery of a box with the money he said had been stolen, blame being cast on both Aelwyn and Edred.

Matters come to a head when the fisherfolk try to storm the abbey, being resisted by the men at arms stationed on the towers. But then Hildegarde realizes that behind the murders was the bursar’s clerk, whom she pursued to the cathedral. There is great drama then as she escapes from him when he tries to kill her, and then from the man at arms who had tried to both rape and kill her, but they both fall from the scaffolding she had climbed, the latter coming from a tower where he had been stationed.

Both of them think they run the rapacity of the abbey, the latter claiming to work for the nobles opposed to Richard, who is presented throughout the book as devoted to his subjects, not to power or money. But though the villains die, the bursar continues, having got over the hysteria the fire had caused and his acknowledgment then of guilt – and though the abbot and the prior seem less vicious, whether they will be able to assert themselves is questionable.

Before the climax, when the others in the guesthouse were leaving, Hildegarde found that two of them were in possession of the relic, for which they seem to have paid well. Hildegarde herself had made a derisory offer, but before she leaves the abbot gives her the relic, perhaps in gratitude for what she and her fellow Cistercians had discovered, the abbey having made as much money as it needed and more from the gullible other buyers.

Mark’s inamorata is saved from the stews because she moves in with Edred’s widow whom the bursar had thrown out of the rooms he occupied when her husband was found dead. Hildegarde had paid for lodgings, in a house run by the man who ran the brothels, but he had a kindly side and was going to finance them to make nets for the fishermen.

So, the Cistercians set off for their home as swiftly as they can to get there on the day of the Epiphany, having stopped en route to pray for King Richard whose birthday it was.

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