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Lanka can’t afford fossil fuels but can’t afford to get off them either
(climatechangenews)
Sri Lanka is in turmoil, with fuel and food shortages provoking citizens to storm the presidential palace and send Gotobaya Rajapaksa packing.Reliance on fossil fuel imports is a big factor in the economic crisis. Fuel prices spiking while tourism stayed in the doldrums led to the country running out of foreign currency, not helped by chronic fiscal mismanagement.
That same economic crisis is now making it harder than ever for Sri Lanka to develop a renewable industry, energy experts and business owners say.On 31 March, protesters marched on president Gotabaya Rajapaksa’s private residence. Things escalated until on 9 July, they stormed the presidential palace, prompting Rajapaksa to resign and flee to Singapore. He appointed an ally, Ranil Wickremesinghe, as his successor and this week a Sri Lankan official said Rajapaksa himself would return to the country, dampening hopes of substantive political change.
Sri Lanka’s economic crisis stems from consistently importing more than it exports. As the country pays in foreign currency (largely US dollars) for imports and sells in foreign currency for exports, its central bank’s foreign currency reserves have been depleting.The government didn’t have enough Sri Lankan rupees to pay for imports so prices of products, including essentials like food and fuel, shot up.
Between 1990 and 2000, Sri Lanka’s net energy imports as a percentage of total energy use doubled from 20% to 40% and has stayed around the same ever since. In 2021, the country spent $3.7bn on imports of oil and coal. Sri Lanka has no significant fossil fuel reserves. It does, according to the World Bank, have good potential for solar and wind power. Yet it has failed to develop either technology. It gets around a third of its electricity from imported oil, a third from imported coal and a third from domestic hydropower.
Lankan journalist Rathindra Kuruwita said this failure to develop renewables was largely the fault of the island’s state-owned monopoly utility provider, the Ceylon Electricity Board.
“Most of the engineers are in cahoots with the power plant mafia,” he said. This “mafia” is not an organised crime mob, but a network of people with a vested interest in fossil fuels: power plant operators, diesel distributors and coal importers.
The Sri Lanka Sustainable Energy Authority has also been slow in approving licenses for renewable projects, he said. If those projects had been approved, Kuruwita added, “we wouldn’t be in this mess”.
When an electrical engineer named Champika Ranawaka became energy minister in 2015, he tried to reform the CEB, Kuruwita said. He lasted eight months in the role.Now the country has run out of foreign currency to import the amount of fossil fuels its infrastructure needs. There are shortages of electricity, of cooking gas and of fuel for vehicles and for the diesel generators used as back-up power.
Before terrorist attacks in 2019 and the coronavirus pandemic, tourism provided 6% of Sri Lanka’s GDP. There were hopes it would rebound this year and bring in much needed foreign currency.But Nimesh, who works in the Atha resort in central Sri Lanka, told Climate Home that tourists are finding it hard to find vehicles to transport them as drivers are having to queue for days to get fuel.On top of that, small hotels and restaurants are suffering from power cuts. Larger hotels have generators but are finding it difficult to find fuel for them.
“These power cuts and fuel shortages are really affecting the tourism industry,” he said.
Lien Wysmans runs a backpackers’ hostel on Arugam Bay beach in the island’s east. She told Climate Home: “There are power cuts as well of about four or five hours a day… I’m freaking out”.
Although Wysmans says her guests don’t mind the power cuts, others are less tolerant. A March 2022 review for a beachfront Airbnb gives one star, citing “power cut- not their fault but created problem for us” among the reasons.A Financial Times reporter who visited the country recently said: “Anyone considering a trip to Sri Lanka this year or next also faces a difficult choice. Avoid the country entirely and the risk of a severely impacted and unexpectedly expensive trip, or support a vulnerable economy unduly impacted by the pandemic and poor management.”
Electric vehicles (with enough electricity) and rooftop solar panels would solve many of the tourist industry’s problems. But rolling them out requires money which most Sri Lankan citizens and their government don’t have.
Wysmans said solar panels “would be definitely a very good solution”. She can’t install them as she is renting the property but, even if she owned it, she said that the return on investment is 25 years. “It’s economically not beneficial for anybody because it’s just too expensive,” she said. “Also, the government is not really supporting.”
Nimesh said: “Solar panels are a great solution but the problem is government can’t afford to give financial support to invest in these projects due to the critical financial crisis that our country is facing”.
There are international schemes to help, like a Asian Development Bank funded scheme to provide low-interest loans for rooftop solar power. But these are on a small scale.
Speaking from her native Belgium, Wysmans said: “Sri Lanka has a really great opportunity for being a self-sustainable renewable energy island but the corruption is stopping all of it.”
“They’ve got the sun, they’ve got the water, they’ve got the wind, they just need to do it,” she added, “but if you have a corrupt government who wants to bring oil in where they can put half the money in their own pocket, it’s never going to happen.”
The Sustainable Energy Authority did not reply to a request for comment.
News
The guidance of Religious Leaders is essential to strengthen coexistence among communities. — Prime Minister
Prime Minister Dr. Harini Amarasuriya stated that the guidance or religious leaders is essential to further strengthen harmony and solidarity among communities in multicultural areas such as Anamaduwa, where Sinhala, Tamil, and Muslim communities live together.
The Prime Minister made these remarks while addressing the official ceremony of presenting the Sannas Patra to confer the title of Chief Sanghanayaka of the Rajavanni and Kumaravanni two provinces upon Venerable Dharmakeerthi Sri Pangnananda Nayaka Thero of Anamaduwa. The ceremony was held on Wednesday (13) at Sudampaya, Anamaduwa.
The event was held under the patronage of the Anunayaka Thero of the Malwathu Chapter, Most Venerable Niyangoda Vijithasiri Thero. During the ceremony, Prime Minister Dr. Harini Amarasuriya formally presented the official declaration appointing Venerable Dharmakeerthi Sri Pangnananda Nayaka Thero as the Chief Sanghanayaka of the Rajavanni and Kumaravanni provinces. The ceremonial Vijinipatha was presented by Opposition Leader Sajith Premadasa.
Addressing the gathering, the Prime Minister stated:
“Venerable Dharmakeerthi Sri Pangnananda Nayaka Thero of Anamaduwa is a distinguished member of the Maha Sangha who has rendered invaluable service to both the Buddha Sasana and the education sector through the country nearly 50 years of monastic life and 35 years of service as an educator.
His service is not confined merely to religious observances. He has sheltered the children and people of the area in times of both hardship and happiness. In particular, it is important to remember the humanitarian leadership he demonstrated in providing relief to the people of the Puttalam District affected by cyclone Ditwah, which became a source of strength for the entire region.
His dedication towards restoring and preserving historic religious sites, including the Paramakanda Rajamaha Viharaya, for future generations is commendable.
As the government strives to lead the country towards ’a new era of renaissance’ built upon compassion and solidarity, the guidance and blessings of religious leaders such as him are of immense value to the government”.
The occasion was graced by the presence of members of the Maha Sangha representing the three Nikayas, clergy of other religions, and attended by the Governor of the North Western Province, Minister of Public Administration, Provincial Councils and Local Government Chandana Abayarathna, Diyawadana Nilame Nilanga Dela Bandara, Members of Parliament, government officials, and a large number of devotees.
[Prime Minister’s Media Division]
Latest News
Special Coordination Committee meeting for Badulla District chaired by the President
A Special Coordination Committee meeting for the Badulla District was held on Wednesday (13) afternoon at the Badulla District Secretariat under the patronage of President Anura Kumara Dissanayake to review the progress of measures taken to restore normalcy to the lives of people affected by the cyclone “Ditwah” and to develop infrastructure in the district.
As a result of the disaster situation, 90,667 individuals belonging to 26,517 families in the Badulla District were affected. A total of 77 estate houses and 507 rural houses suffered complete damage. In addition, 1,376 estate houses and 1,474 rural houses have been identified as high-risk dwellings. Accordingly, the total number of families that need to be resettled in the Badulla District is 3,434. During the meeting, the President inquired separately at divisional secretariat level about the resettlement process and the issues that had arisen.
Special attention was also given to the speedy release of state lands currently occupied by private companies, which have been proposed for resettlement purposes. The President instructed officials to commence housing construction work immediately after reaching agreement among the relevant institutions regarding the release of these lands.
The President further emphasized the need to expedite the resettlement process and stated that authorities should move beyond reports and plans and ensure that people who lost their homes gain confidence and hope in owning a new house.
The President also instructed that people who are hesitant about relocating to different lands should be given time until June 15 to make a decision.
The President separately reviewed the progress of compensation payments to affected people in the Badulla District, including compensation for loss of livelihoods, compensation for small and medium-scale business establishments, housing rental assistance and compensation for loss of life.
Attention was also drawn to the process of removing sand and rocks deposited on paddy fields and agricultural lands due to the disaster. It was decided to provide an allowance of Rs. 25,000 per acre for this purpose and to implement the programme with the support of farmer organizations.
Special focus was also given to the development of roads in the Badulla District damaged by the disaster. The President instructed that work on all 21 affected roads under the Road Development Authority be completed within this year.
The President also inquired about the programme being carried out for provincial road development and the required allocations and instructed officials to prepare and submit estimates for the necessary funding for all those roads.
The President further instructed officials not to consider financial constraints as an obstacle in restoring normal life for those affected by the disaster. President Dissanayake stated that the district should recover from the destruction caused by the cyclone within this year and be prepared to restart the Badulla District development programme from next year onward.
Also attending the meeting were Badulla District Coordination Committee Chairman and Minister of Plantation and Community Infrastructure, Samantha Vidyarathna; Co-Chairman and Uva Province Governor, Attorney-at-Law Kapila Jayasekara; Deputy Minister of Tourism, Ruwan Ranasinghe; Deputy Minister of Youth Affairs, Dinidu Saman Hennayake; Members of Parliament Kitnan Selvaraj and Ravindra Bandara; the Mayors of Badulla and Bandarawela Municipal Councils; Chairpersons of Local Councils; public representatives; the Chief Secretary of the Uva Province; the District Secretary; government officials of the Badulla District; Heads of relevant Departments; and representatives of the security forces.
(PMD)
News
SJB flays PUCSL for shifting coal scandal losses to electricity consumers
Alleging that the Public Utilities Commission of Sri Lanka (PUCSL) has shifted the massive losses, caused by the coal scam, to the hapless public, Opposition and SJB Leader, Sajith Premadasa, has questioned the conduct of the regulator, noting that it is mandated to protect the interests of both the service provider and the consumers.
Premadasa alleged that the PUCSL ignored the representations made by the SJB on behalf of local industries.
Premadasa said that the PUCSL had authorised the latest 18% increase, in response to the request made by the recently established National System Operator (Pvt) Ltd (NSO), on behalf of the NPP government.
The PUCSL was established in terms of the Public Utilities Commission of Sri Lanka Act, No. 35 of 2002. Although the PUCSL was supposed to function as a multi-sector regulator for electricity, water services and petroleum industries, successive governments refrained from bringing water services and petroleum industries under its purview.
The Opposition leader alleged that the PUCSL did the bidding of the government.
Since January this year, PUCSL has increased electricity tariffs on three occasions. The latest came into operation on 11 May.
The PUCSL consists of Prof. K. P. L. Chandralal (Chairman), Engineer Piyal Henanayake (Deputy Chairman), Dr. M.C.S. Fernando, and Lilantha Samaranayake, PhD.
Premadasa said that instead of taking tangible measures to recover the unbearable losses caused by the coal scam, the government burdened the entire country through the PUCSL.
“Don’t forget that the government is shielding its henchmen responsible for the coal scam at the expense of the country,” MP Premadasa said, pointing out that there couldn’t have been any dispute over their culpability, after the National Audit Office (NAO) found fault with the Energy Ministry for granting the tender for the supply of coal for the 2025/2026 season to a company not qualified even to participate in the tender process.
The SJB leader declared that the resignation of Energy Minister, Kumara Jayakody, and its Secretary, Prof. Udayanga Hemapala, in the immediate aftermath of Parliament defeating a no-faith motion against the Minister was meant to protect the ruling party.
The PUCSL has stated that the NSO received Rs 15 bn from the government to grant relief to 95% of the consumers. “How could the PUCSL justify unbearable electricity tariff increases for the remaining 5% of the consumers, knowing very well that it will destabilise key sectors in the economy?” a power sector expert said.
By Shamindra Ferdinando
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