Opinion
Generation cost grossly underestimated and objectives not achievable

Proposed new coal power plant at Norochcholai:
The Chairman of the Ceylon Electricity Board (CEB), at a press briefing held at the CEB recently, has announced that a fourth unit of 300 MW would be added to the Norochcholai Coal Power Plant. This plant is estimated to cost around USD 300 million and it will produce 1.8 billion units (1,800 GWh) of electricity annually at a cost around Rs. 8.50 plus per unit of kWh (The Island of 31.07.2020).
Regrettably, the Chairman is giving a grossly underestimated value for the generation cost leaving out more important costs. The specific capital cost being USD/kW 1,000, one may assume that the plant is a subcritical type with low efficiency and high emissions. These types of plants are no longer installed in developed countries as they have efficiency below 35% meaning the plant consumes higher amount of coal than a high-efficient plant to generate the same amount of electricity.
A low efficient plant will also emit higher amount of pollutants such as oxides of nitrogen, oxides of sulphur and particulate matter as well as generate higher amount of ash than a higher efficient plant. These emissions cause serious damage to health of people as well as damage to vegetation and crops and also fisheries within the exposed area. The disposal of ash collected at the rate of about 100,000 tonnes annually from a 300 MW plant has not been properly addressed even with the existing plants. The addition of a fourth unit will aggravate the ash problem and its impact on the environment.
A study undertaken by the Sri Lanka Energy Managers’ Association recently, the monetized value of such damage referred to as external costs of thermal power plants have been worked out. The cost of externalities in respect of a coal power is found to be about LKR 10 per kWh, according to this study. Though the CEB may not be accountable for such damages, the government will have to meet the cost of healthcare for affected people as well as cost to the economy due to loss of agricultural and fisheries productivity. Hence, it is important to include cost of these externalities when assessing different types of generation plants. With this cost included, the cost of generation of a coal power plant will be around LKR/kWh 18.50, rather than the LKR/kWh 10 as quoted by the Chairman.
The Chairman’s statement also says that an environment impact assessment (EIA) study is underway. Actually, in Sri Lanka, an EIA study has no meaning and is carried out merely to get over a legal requirement. There is no system to monitor regularly the performance of the plant once it is commissioned after receiving approval for its EIA. For example, in a coal power plant special pollution control equipment are installed to reduce the emissions such as Sulphur dioxide and particulates to a level making it eligible for EIA approval. If the control equipment starts malfunctioning due to some reason or other, pollutants are emitted in large quantities that violate the relevant emission standards but the plant will continue to operate causing heavy pollution.
When the control equipment is new, they reduce the emissions as expected, but there is the possibility that they will start malfunctioning soon, especially when operating in coastal environment. This was evident in the existing coal plant and there is the possibility it will happen with the new plant as well. The EIA only says that with the control equipment installed, emissions will be reduced to permissible levels. Though such an assurance is given at the beginning, there is no assurance that the plant will perform as expected throughout its lifetime. Hence, what should be selected is a power plant that will intrinsically not generate pollution such as a gas power plant or one operating with renewables.
Another issue is how the capital cost is met. The cost of the plant is expected to be USD 300 million or LKR 60 billion. How will the CEB raise this amount of capital? Is it on a loan raised from a Chinese source or from a commercial bank or from a multilateral financial agency like ADB or World Bank, but it is unlikely these institutions will fund coal power projects? Hence, the choice is limited to a Chinese Institution or commercial bank/s. There were also media reports that CEB may enter into a joint venture with China with 50:50 share and the CEB may obtain a loan from a local bank to meet its obligation. In any case, financing the project will include additional costs.
According to a report released by the Public Utilities Commission of Sri Lanka, the cost of generation of existing coal power plant is LKR 18.60 based on Bulk Supply Tariff submission by the CEB for the period Oct-Dec 2017, including finance cost, and excluding cost of externalities and transmission. In November 2019, Cabinet approval was granted for the CEB to hire Chinese technicians for maintaining the existing coal power plants. It is very likely that the CEB will have to depend on Chinese technicians to manage the new plant as well, in which case its maintenance costs will escalate.
The Chairman, therefore without misleading the Cabinet and the people saying that coal power is the cheapest with the exception of hydro power, should divulge the entire costs incurred in operating the new coal power plant. These costs should include the amortized annual capital cost, fuel cost, operation and maintenance cost, externality costs as well as cost of financing.
Though the building of the fourth unit of 300 MW was approved at a Cabinet meeting held on 03.06.2020 with the objective of meeting the power deficit anticipated in 2021, it is obvious that this objective cannot be achieved by the proposed coal power plant simply because it will take a minimum of five years to complete.
The Chairman, being a professional, owes an explanation to the Cabinet as well as to the public why he recommended building a coal power plant knowing very well that the expected objective of meeting the 2021 deficit claimed in the Cabinet decision cannot be achieved with the proposed plant.
With the high costs associated with a coal power plant and its inability to meet the 2021 deficit as announced, the government should seriously consider building a plant operating with an alternative source such as gas or a renewable source which is cleaner, costing much less and taking shorter time to build than a coal power plant.
Dr. Janaka Ratnasiri
Nawala
Opinion
Our rice crisis: A holistic solution – II

by Emeritus Professor Ranjith Senaratne
Department of Crop Science, University of Ruhuna (ransen.ru@gmail.com)
(Continued from 03 March, 2025)
Voiceless farmers and toothless farmer organisations
The hapless farmers, who render a yeoman service to the nation by ensuring food and nutritional security are often at the mercy of some large-scale rice traders and millers. They get a raw deal at the end of the day, and this vicious cycle has gone on for many years with no end in sight. Consequently, every year, several “nation’s feeders” take their own lives out of sheer frustration and hopelessness. There are farmers’ organisations in the country who speak on behalf of the hapless farmer, but their protests seldom make an impact on the politicians and policy makers to change the status quo. What is most ironic is that the millions of paddy farmers who feed the nation are voiceless and powerless, while even private bus drivers, three-wheeler drivers and railway guards, to name a few, are much more powerful and make themselves heard.
However, many countries have powerful farmer organisations that wield much influence at the national level. Hence, it is possible and important to strengthen and give muscle to local farmer organisations through awareness, professional training and capacity building so that they could evolve into a vibrant and powerful force that cannot be brushed aside, but must be reckoned with by the policy makers, planners and politicians. Opportunistic political elements with ulterior motives masquerading as farmer representatives should not be allowed to exploit these hapless “nation feeders” for their narrow political ends, something which is unfortunately evident in our country. The Faculties of Agriculture and professional bodies in allied fields have a responsibility and moral obligation to provide leadership and guidance to bona fide farmer organisations which will contribute not only to improving the socio-economic standard of the millions of farmers and their families, but also to enhancing food and nutritional security in the country.
Uncoordinated and unregulated crop production
There is a plethora of government institutions in the agricultural sector, yet no institution is mandated to coordinate and regulate the national crop production. Taking into account land capability, climatic potential, food demand, export potential etc. will minimise food surpluses and scarcities and overuse of fertilisers and pesticides while ensuring a fair price to both the farmer and consumer. Presently, anybody with land and the necessary resources and inputs can cultivate any crop anywhere on any scale at any time. However, in many countries, food production and food imports are carefully regulated to minimise food surplus and scarcity. Farmers are given incentives to produce less when a glut is anticipated and to produce more when a scarcity is likely. Such decisions are based on market surveys, meteorological forecasts and past experience, ensuring fairly stable prices throughout the year.
In each district, govt. support such as fertiliser subsidies, crop insurance, provision of water, bank loans, etc., should be provided only to farmers with a proven track record who cultivate paddy in productive areas adhering to the recommended cultural practices. If a field with high potential produces a low yield, it is likely to be associated with poor management. Cultivation of such paddy fields should be given to promising farmers in the area and benefits should be shared between the two parties in an equitable manner. This will help realise the potential yield from the field. Such intervention could be made with the support of the farmer organisations in the area.
Lack of robust anti-hoarding laws
Hoarding of agricultural produce and the consequences arising therefrom have posed formidable challenges to governments and caused untold hardships to the consumers in many parts of the world. As regard paddy production in Sri Lanka, it is reported that nearly 70% is purchased by the small and medium scale millers and the remaining 30% by a few large scale millers. While the veracity of those figures is yet to be established, the existing laws and regulations are not robust enough to effectively deal with the issues of hoarding and associated problems which have precipitated a prolonged crisis in the country. In this context, it is appropriate to see how the Philippines has dealt with a similar problem. The new law, Anti-Agricultural Economic Sabotage Act, enacted by the Dept. of Agriculture in the Philippines in September, 2024 has declared smuggling and hoarding of agricultural products as economic sabotage and has imposed stiff penalties against smugglers and hoarders of agricultural food products, including heavy fines, i.e. 5 times the value of smuggled and hoarded agricultural products and life imprisonment if found guilty. Such deterrent punishment would benefit the farmers and fisher folk whose livelihoods have been jeopardized by unscrupulous traders and smugglers (https://www.da.gov.ph/da-chief-new-law-declares-smuggling-hoarding-of-agricultural-products-as-economic-sabotage/). The Government in our country could introduce such laws to deal with undisclosed hoarding of agricultural produce and products by traders and millers. Through constructive engagement with traders and millers and deployment of electronic sensor based computational intelligence in storage bins or silos, the govt. will be able to ascertain the stock position on a real-time basis so that necessary interventions could be made to minimize shortages and price fluctuations in rice. This technology has many applications in smart inventory and stock management and such technological interventions can be facilitated by the newly established Ministry of Digital Technology.
In order to avoid making this article lengthy, I have not elaborated on some further factors contributing to the rice crisis. However, they have been dealt with in the book edited by the writer in 2021 titled “The Future of the Agriculture and the Agriculture of the Future: From Beaten Track to Untrodden Paths”.
Conclusions
Availability of rice and its price depend on the rice value chain which encompasses not only a multitude of actors and players, but also several sectors of the economy. Therefore, there are no simple, straight forward solutions to such a complex, multi-faceted and multi-dimensional problem, and tinkering with the system is to no avail and will only aggravate matters. This problem, developed over many years, demands a holistic systems approach through transsdisciplinary interventions. Here, the issue should be viewed in an integrated manner as a collection of interconnected and interdependent elements and people, taking into account the relationships and interactions between them. This calls for a paradigm shift and bold, proactive and pragmatic moves in order to bring about a sustainable solution to this complex, intractable and drawn-out problem, thereby ensuring year-round availability of rice at an affordable price to the ordinary citizen.
This would, among other things, include enactment of the requisite laws and regulations to deal with the oligopoly of rice trade and the lack of price regulation of key imported agricultural inputs such as pesticides, weedicides, fungicides etc. and services such as hiring of machinery for land preparation, harvesting, threshing etc. for which the farmers presently pay exorbitant prices. In addition, announcing the guaranteed price of paddy only after the harvest is an unkind cut. The price should be made known to the prospective farmers well ahead of the beginning of the cultivation season, thereby giving them an opportunity and the space to decide whether to cultivate paddy on a commercial scale and, if so, to what extent.
Needless to add that the hapless farmers are at the mercy of the large-scale rice millers and traders, including input and service providers. However, we must recognize the pivotal and crucial role they play in supporting the paddy production and providing quality rice to the consumer. However, the failures of the governments to date to enact and enforce the requisite laws and regulations have made the farmers extremely vulnerable and prone to exploitation in a fiercely competitive globalized environment where ethical and moral values are fast eroding.
Therefore what is needed in this decisive hour in not to continue finding fault with and flogging the large-scale millers and traders, or blaming the previous regimes, but to make proactive and constructive moves, hasten to enact pragmatic and actionable laws and regulations, and beef up the relevant law enforcement and regulatory authorities such as Consumer Affairs Authority, providing them with the much needed teeth and resources to address the said key issues as a matter of top priority and the utmost urgency. The government has received an overwhelming mandate with 159 members in the parliament. Hence, the above interventions will be only a walk in the park for the government to introduce. The earlier it happens, the better, since the next rice crisis, like the second wave of the tsunami in 2004, could be much worse and more disastrous not only in economic and social, but also in political terms.
(The writer appreciates the comments and observations made by Dr. W.M.W. Weerakoon, former Director General, Dept. of Agriculture, Dr. Sumith Abeysiriwardena, former Director, Rice Research and Development Institute, Bathalagoda and Mr. C.S. Kumarasinghe, Senior Lecturer, Department of Crop Science, University of Ruhuna on a draft of this article)
Opinion
Lessons from Ukrainian Debacle

Why Sri Lanka must continue to pursue a Non-Aligned, yet Multi-Aligned Foreign Policy:
by Ali Sabry, PC
In a world increasingly polarised by great-power rivalries, Sri Lanka must remain steadfast in its time-tested foreign policy doctrine: non-alignment. Our strategic location in the Indian Ocean, economic aspirations, and long-term stability demand that we engage with all global actors without becoming pawns in their geopolitical games.
The ongoing crisis in Ukraine offers a stark reminder of what happens when small and mid-sized nations get caught in the crossfire of major power struggles. For Sri Lanka, the lesson is clear: we must remain non-aligned yet multi-aligned, engaging with all, avoiding entanglements, and ensuring that our sovereignty is never compromised.
The Ukrainian Crisis: A Cautionary Tale for Small States
Ukraine’s tragedy is not just a distant war; it is a lesson in realpolitik for all small nations. Over the past two decades, Ukraine found itself on the fault line between NATO and Russia. By aligning too closely with one camp, it triggered existential fears in the other. When the crisis escalated, Ukraine was left to bear the full cost of war. its cities reduced to rubble, its economy in shambles, and millions of its people displaced.
Despite strong international support, Ukraine has suffered devastating consequences. The military and financial aid it has received has come at a tremendous cost, both in human lives and economic ruin. No amount of Western backing has spared Ukraine from becoming the battlefield of a larger geopolitical contest.
For Sri Lanka, the lesson is simple: never allow ourselves to become the battleground for someone else’s war. We must ensure that our sovereignty is non-negotiable and that our foreign policy choices are dictated solely by our national interests, not by the strategic ambitions of global powers.
Sri Lanka’s Foreign Policy: The Power of Equidistance
Sri Lanka has historically been a champion of non-alignment. From our role in the Non-Aligned Movement (NAM) to our principled stand at the 1951 San Francisco Peace Conference, we have long understood that small states wield the greatest power when they remain independent in their decision making.
Over the years, we have experienced the perils of veering too far in one direction. The late 1970s saw an excessive pro-Western tilt, leading to strained relations with India and regional instability. More recently, an over reliance on China in the early 2010s resulted in economic vulnerabilities and strategic imbalances. The anti-China rhetoric of 2015 cost us dearly, almost freezing Chinese investments and triggering a devastating economic slowdown that contributed to the financial crisis.
Every time Sri Lanka has moved too close to one power bloc, it has paid a price, whether in economic pressure, diplomatic isolation, or security threats. This is why our best path forward is non-alignment in politics but multi-alignment in economic and diplomatic engagement.
What Does a Non-Aligned Yet Multi-Aligned Foreign Policy Look Like?
1. No Military Alignments, No Foreign Bases
• Sri Lanka must firmly reject any attempt by external powers to establish military bases or exclusive defence arrangements on our soil. While we should engage in cooperative security dialogues, we must not allow ourselves to be drawn into power blocs that undermine our neutrality.
2. Economic Engagement with All, Dependency on None
• We should welcome investments from all corners, India, China, the U.S., the EU, Japan, and others, while ensuring that no single actor dominates our economic landscape. A diversified economic strategy will safeguard us from economic coercion and financial vulnerabilities.
3. Diplomatic Balancing
• Just as we engage with China on infrastructure, we must strengthen ties with India for regional security and trade, collaborate with the U.S. and Europe for technology and education, and maintain strong links with Japan and ASEAN for economic opportunities.
4. Leveraging Multilateralism
• Sri Lanka must remain active in regional and global organisations like the UN, NAM, SAARC, and BIMSTEC, using these platforms to promote dialogue, trade, and security cooperation without taking sides in major power conflicts.
5. Resisting Coercion and Protecting Sovereignty
• Major powers will always seek to exert influence over small nations, forcing to take sides, whether through economic pressure, diplomatic maneuvering, or security agreements. We must have the political will to resist undue pressure and assert our sovereign right to pursue an independent foreign policy.
A Realistic Assessment of Our Size, Strength, and Interests
Sri Lanka is not a superpower. We do not have the economic or military clout to take sides in great power conflicts. But we do have strategic importance, a vital geographic location, and a respected voice in international diplomacy. If we play our cards wisely, we can turn our neutrality into an advantage, positioning ourselves as a hub for global trade, an honest broker in international disputes, and a bridge between competing powers.
We must recognise that aligning with any single power bloc, whether Western, Chinese, or otherwise, will only expose us to greater risks. Instead, a pragmatic, balanced approach will allow us to benefit from global partnerships while avoiding the pitfalls of dependency.
The Middle Path is the Best Path
Sri Lanka does not need to pick sides. We need to pick strategies that work best for our long-term stability, security, and prosperity. The world today is as divided as it was during the Cold War, and the lessons from Ukraine prove that small nations that fail to remain neutral pay the heaviest price.
Our path is clear: a foreign policy rooted in non-alignment, strengthened by multi-alignment, and guided by the unwavering principle that Sri Lanka’s future must be shaped by Sri Lankans not by external pressures.
As we move forward, we must do so unapologetically and with confidence, embracing the world, engaging with all nations, and ensuring that Sri Lanka remains sovereign, secure, and successful in an increasingly uncertain global order.
Opinion
Gnana Moonesinghe

Gnana Moonesinghe, who passed away recently had a multi-faceted life although never a career. A woman of many interests – in literature, politics, diplomacy, journalism – she spanned these divides with great felicity and charm.
Gnana Coomaraswamy was born into a well-known Jaffna family. Her father was educated at Cambridge University in England and was a barrister. He pursued a career in education being principal of a leading Jaffna school. Gnana herself had an education in Colombo, and she entered the University of Ceylon at Peradeniya, from Ladies College, in 1955.
Her sister had married Dr. Kumaran Ratnam, who was once a Mayor of Colombo. Gnana married Mangala Moonesinghe, a lawyer and politician who was a descendent of Anagarika Dharmapala. Mangala Moonesinghe was MP for Bulathsinhala in 1965-1977. During that period, Gnana was heavily engaged in looking after that electorate and developed a close relationship with many of his constituents. She enjoyed being a politician’ s wife.
When Mangala was appointed High Commissioner in New Delhi in the 1980s, Gnana found another congenial and productive occupation. She was the perfect wife of a diplomat, and the couple enjoyed the diplomatic life in New Delhi and the high profile among the New Delhi circles. Mangala and Gnana developed a close relationship with Prime Minister, Gujaral of India. While in Delhi, Gnana produced a book – “Footprints of the Buddha”. After New Delhi, Mangala and Gnana had a couple of years in London as Sri Lanka’s High Commissioner. On return to Sri Lanka, Gnana was engaged in domestic, political and civil society issues. She and Mangala had a particular interest in the ethnic issue. She was a regular contributor to the newspapers and particularly concerned with the politics of the time. She edited a book on Sri Lankan government structures some time during this period. She was a member of the Disputes Resolution Council of the Press Complaints Commission of Sri Lanka.
It is 70 years since I first met Gnana. We both entered university at Peradeniya in 1955. From 1956-1959, Gnana and I read for a special degree in Economics. There were three young women and over 20 men reading for this course. Gnana specialised in political science. Only a very few of us are still around. It is a pleasure to have known Gnana all these long years. She leaves a son, Sanath who lives in the United States, and daughter Avanti ,who is married to Murtaza Esufally.
Leelananda De Silva
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