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Bridging conservation and livelihoods: Addressing the Human-Elephant Conflict in Sri Lanka on World Elephant Day

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By Ruwan Samaraweera

Written ahead of World Elephant Day, observed on 12 August 2023.

On World Elephant Day, attention turns to the unique challenges faced by Sri Lanka in the realm of human-elephant conflict (HEC). HEC’s escalating toll paints a stark reality. Human communities endure property damage, crop loss, and tragic fatalities, amplifying poverty and socio-economic instability. In 2022, as per the Department of Wildlife Conservation (DWC), Sri Lanka documented a total of 145 human fatalities resulting from HEC. Simultaneously, elephants face habitat loss, injuries, and mortality due to retaliatory killings and encounters with human settlements. DWC reported a substantial rise in elephant mortality, reaching a peak with a recorded total of 433 deaths in 2022. Therefore, the urgent need for implementing effective solutions to minimise HEC in the country becomes paramount.

Understanding the Conflict

The HEC is one of the widespread environmental issues with severe socio-economic and political implications in Sri Lanka. It arises from numerous reasons, wherein the competition for resources and land between humans and elephants being the most prominent. Rapid urbanisation, encroachment into elephant habitats, conversion of forests for agriculture, and other infrastructure development projects like road infrastructure have disrupted the elephants’ traditional migration patterns and fragmented their habitats. Consequently, elephants often venture into human settlements in search of sustenance, leading to conflicts that endanger both elephants’ and human lives.

Sumanadasa, a farmer in Galgamuwa, shares his experience of frequent elephant raids on their crop lands. He says, “As a farmer, my family depends on the crops we cultivate for our livelihood. However, the constant raids by elephants have taken a toll on our lives. We wake up each morning with anxiety, not knowing if our fields will be destroyed overnight. Our hard work and investment go in vain as elephants trample and devour our crops. It has become a struggle to provide for our family and maintain a sustainable income.”

These heart-wrenching stories highlight the profound impact of the HEC on individuals and communities. Beyond the economic losses, the emotional trauma and loss of human lives are immeasurable. The alarming increase in human and elephant fatalities resulting from HEC in Sri Lanka underscores the gravity of the situation. The average annual human death rate due to HEC increased by approximately 42% from 1992 to 2021, with the 2021 figure reaching 142 deaths. Despite fluctuations, the number of HEC-caused human deaths has consistently exceeded 100 per year over the last three years, resulting in a total of 2,111 human and 5,954 elephant casualties within the last 30 years. Apart from that, as already mentioned, crop damages emerge as a pervasive and severe issue. An IPS study revealed that among the crops grown in HEC-prone areas, paddy is the most vulnerable crop for elephant attacks, following coconut and banana. Furthermore, farmers have altered their cropping seasons due to this wild elephant risk.

Recognising the urgency of addressing the HEC, Sri Lanka has undertaken various policy initiatives and conservation efforts. Some of these are institutionally arranged measures while some are voluntary adjustments by affected communities. The DWC plays a crucial role in mitigating conflicts, implementing institutionally arranged measures such as creating elephant corridors, elephant drives, thunder flashes distribution, habitat enrichments and installing electric fences to reduce human-elephant interactions. Additionally, community-based conservation projects involving local communities in decision-making have shown promising results in promoting peaceful coexistence in some parts of the country. As a multifaceted approach to mitigating HEC, DWC has been implementing the “GajaMituro‟ programme since 2008. Under this, the DWC launched the aforementioned mitigating measures in 58 Divisional Secretariat Divisions (DSD) of 18 Districts. Similarly, residents in affected areas practice numerous voluntary measures to deter problems from elephants. Some examples of voluntary measures include erecting watch huts, creating noise (e.g., firing thunder flashes, shouting), establishing biological fences, and using lighting methods such as fires, kerosene lamps, flares, and flashlights to frighten and chase away the elephants. However, none of the mitigation measures has given a perfect solution due to various limitations. For instance, some elephants develop adaptive behaviours to actions such that thunder flashes, thus making those no longer effective against them.

Hence, to effectively manage the HEC, innovative solutions are imperative, and the government, academia, and other interested stakeholders continue to actively pursue innovative approaches and optimal strategies to effectively tackle the issue of HEC in Sri Lanka. Technology-driven approaches, including using infrared cameras, drones, sensor-based systems, and satellite imagery to detect habitat monitoring and elephant movements and then using mobile communication systems to alert nearby communities in real-time (early warning system), can help prevent conflicts. Through educational programmes in schools and community outreach initiatives, a sense of responsibility can be instilled while highlighting innovative market-based solutions like insurance. An IPS study found that insurance as a market-based solution can deliver promising results. These solutions can be complemented by agro-ecological practices such as cultivating elephant-resistant crops, bee-fencing and establishing community-managed buffer zones around protected areas.

Conclusion

As World Elephant Day serves as a powerful global platform for raising awareness on elephant conservation, Sri Lanka can capitalise on this occasion to promote understanding, empathy, and conservation values within local communities.

It is crucial to acknowledge that no single solution can entirely address the complexities of the HEC issue, given its regional variations, changes in elephant behaviour, and diverse human activities. Therefore, adopting a holistic approach that combines suitable traditional methods alongside innovative strategies, involving local communities, and considering the conflict’s ecological, economic, and social aspects becomes essential for effective and sustainable HEC mitigation. Collaboration among government agencies, conservation organisations, and local communities becomes paramount in achieving a harmonious coexistence where elephants roam freely, and humans thrive.

By adopting this comprehensive approach, Sri Lanka can strive towards a future where both elephants and humans coexist peacefully, safeguarding the well-being of these majestic creatures for generations to come. World Elephant Day serves as a poignant reminder that collective action and shared responsibility are crucial in preserving the rich biodiversity and cultural heritage that define this island nation.

Link to blog: https://www.ips.lk/talkingeconomics/2023/08/10/bridging-conservation-and-livelihoods-addressing-the-human-elephant-conflict-in-sri-lanka-on-world-elephant-day/

Ruwan Samaraweera is a Research Officer at IPS with a background in entrepreneurial agriculture. He holds a Bachelor’s in Export Agriculture from Uva Wellassa University of Sri Lanka. His research interests are environmental economics, agricultural economics, macroeconomic policy and planning, labour and migration, and poverty and development policy. (Talk to Ruwan – ruwan@ips.lk)



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Oil at $150 will trigger global recession, says boss of financial giant BlackRock

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Larry Fink was speaking exclusively to BBC business editor Simon Jack (BBC)

If the price of oil hits $150 a barrel it will trigger a global recession, the boss of US financial giant BlackRock has told the BBC.

Larry Fink, who leads the world’s largest asset manager, said if Iran “remains a threat” and oil prices stay high it will have “profound implications” for the world economy.

In a wide-ranging exclusive interview, he also denied there was an AI bubble, although he said the new technology meant too many people were pursuing university degrees and not enough doing technical training.

BlackRock is a financial colossus, controlling assets worth $14 trillion (£10.5tn), and is one of the biggest investors in many of the world’s largest companies.

Its size and spread gives Fink – who is one of the eight co-founders of the business, which started in 1988 – a unique insight into the health of the global economy.

The conflict in the Middle East has triggered wild moves on financial markets as people try to assess what will happen to energy costs.

For Fink, it is too early to determine the ultimate scale and outcome of the conflict, but he believes it will be one of two extreme scenarios.

In one, if the conflict is settled and Iran becomes a country that can be accepted again by the international community then the price of oil could fall back to below where it stood before the war.

But if not, he says, then there could be “years of above $100, closer to $150 oil, which has profound implications in the economy” and an outcome of “a probably stark and steep recession”.

The surge in energy costs has led to some in the UK to argue that it should be focusing more on producing its own oil and gas.

On Tuesday, industry body Offshore Energies UK said that without more domestic production, the country risks becoming reliant on imports  “at a time of rising global instability”.

Fink says countries need to be pragmatic about their energy mix by using all sources available to them, but providing cheap energy is key to driving growth and raising living standards.

“Rising energy prices is a very regressive tax. It affects the poor more than the wealthy.”

While the UK already has some solar and wind power and hydrocarbons, if oil prices were to rise to $150 for three or four years, “you would have so many countries moving so rapidly towards solar and maybe even wind”.

Countries should not depend on just one source, he says.

“Use what you have unquestionably, but also aggressively move towards alternative sources too.”

Some analysts have suggested that there are some echoes of the run-up to the 2007-08 financial crisis in the markets at the moment.

Energy prices are surging and some have flagged signs of cracks in the financial system. BlackRock itself is one of several firms to have limited withdrawals by nervous investors from private credit funds.

But Fink is adamant there is no chance of a repeat of the financial trauma seen in 2007-08, when several banks around the world collapsed or had to be rescued, as he believes financial institutions today are more secure.

“I don’t see any similarities at all,” he says. “Zero.”

The issues affecting some funds account for a small fraction of the overall market and investment from institutions remains strong, he says.

Fink also rejects suggestions that the surge in investment in AI, which has seen billions of dollars invested in the new technology, has been overblown.

“I do not believe we have a bubble at all,” he says.

“Could we have one or two failures in AI? Sure, that I’m fine with.”

Last year, BlackRock was part of a consortium that bought one of the world’s largest data centre providers, Aligned Data Centres, in a $40bn deal.

“I believe there’s a race for technology dominance. I believe that if we do not invest more, China wins. I believe it’s mandatory that we are aggressively building out our AI capabilities.”

The biggest issue he feels that is hindering the expansion of AI in the US and Europe is the cost of energy.

While China is investing hugely in solar and nuclear power, in Europe “I just see a lot of talk and no action”, he says, while in the US “as much as we are energy independent, we better start focusing on solar… because we need to have cheap, inexpensive power to move into AI”.

Earlier this week, in his annual letter to shareholders,  Fink said the boom in artificial intelligence risked widening inequality, with only a small number of firms and investors seeing the benefits.

However, speaking to the BBC, he emphasised AI was going to create an “enormous amount of jobs”.

He said that in his letter he had written about how many jobs would be created “related to electricians and welders and plumbers”.

In contrast, there might not be as much demand for some office jobs as AI evolves and this could lead to a rethink about what roles are needed as “society is changing and evolving”.

“We really put judgement on so many jobs and so many people who probably should not have gone into banking or media or law, [who] probably should have been a great worker with their hands, and we need to now rebalance that approach,” he says.

In the US, he says, after World War Two “we built the foundation of education, and we said to all the young people, go to college, go to college, go to college. And we probably overdid it”.

“We need to balance that out, and we need to be proud that… a career can be just as strong in these fields of plumbing and electricians.”

(BBC)

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Mahindra ldeal Finance’s Rs 1 Bn debut debenture issue oversubscribed on day 1

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Director/CEO, Mufaddal Choonia

Mahindra Ideal Finance Limited (MIFL) has announced the successful conclusion of its debut Rs 1 Billion debenture issue, which was oversubscribed on the first day of opening, marking a significant capital market milestone for one of Sri Lanka’s fastest-growing licensed Non-Banking Financial Institutions.

The Issue comprised up to Ten Million (10,000,000) Tier 2, Listed, Rated, Unsecured, Subordinated, Redeemable Debentures at a par value of LKR 100 per Debenture, raising up to Sri Lanka Rupees One Thousand Million (LKR 1,000,000,000), with a five-year tenure maturing in 2031.

Commenting on the outcome, MIFL Managing Director/CEO, Mufaddal Choonia said the proceeds of the Company’s inaugural debenture issue will be deployed to strengthen lending capacity across its core business segments, including vehicle leasing, gold loans, SME loans, and business loans.

“The success of our first debenture issue is testament of our performance so far and speaks of the confidence that investors have placed in our future growth story. The strong market response is also the best validation we can secure from the investor community on the strong fundamentals that underpin our business. We will honor that trust by deploying these funds to further provide accessible credit to enrich the lives of our customers and for the communities we serve.”

The capital raise also strengthens the Company’s Tier 2 capital base in compliance with the Central Bank of Sri Lanka’s Capital Adequacy Requirements.

The Debentures were offered in two structures — Type A, at a fixed rate of 12.00% per annum payable annually, and Type B, at a floating rate of the 364-Day Treasury Bill rate plus 3.50% per annum payable semi-annually.

The Issue carried a credit rating of A (lka) from Fitch Ratings Lanka Limited, with MIFL holding an entity rating of AA-(lka) with a Stable Outlook. The Issue was managed by NDB Investment Bank Limited, with Bank of Ceylon serving as Joint Placement Agent. (MIFL)

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SEC and CSE strengthen role of auditors of Watchlist Companies

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From Left to right: Kassapa Weerasekara, Ms. Manuri Weerasinghe and Ms. Nilupa Perera

The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) jointly organized an awareness session recently, for auditors of companies which are currently on the CSE Watchlist. The session focused on enhancing awareness of enforcement actions and timelines, reducing prolonged Watchlist durations, and fostering a more coordinated regulatory approach among regulators, auditors, and listed companies.

Addressing the session, the Chairman of the SEC, Senior Prof. D.B.P.H. Dissabandara highlighted the core professional virtues of an auditor drawing from his own career beginnings, “At the heart of every auditor’s role lies three virtues: integrity, objectivity and confidentiality.” He reminded the gathering, that while an auditor may formally be recognized as a supplementary service provider under the SEC Act, their true value runs far deeper. Every time a listed company submits its financial statements, it is the auditor’s opinion that gives investors the confidence to trust those numbers. In that sense, auditors are not just ticking a regulatory box, they are the ones holding the line on transparency.

Senior Prof. D.B.P.H.
Dissabandara

Further, Professor Dissabandara drew attention to the current Watchlist situation, noting that while the inclusion of certain companies on the Watchlist is an appropriate regulatory measure, their prolonged presence on the Watchlist may send adverse signals to investors. He called for a structured connected approach involving auditors and listed company management to ensure incremental progress towards resolving Watchlist triggers, particularly those arising from going concern issues and the non-submission of financial statements.

The Head of Listed Entity Compliance at the CSE, Kassapa Weerasekara delivered a presentation focused on enforcement actions that can lead to securities being transferred to the watchlist. Weerasekara reminded the gathering “If companies take the right steps and obtain independent verification on the resolution of all matters giving rise to Modified Opinion and Emphasis of Matter on Going Concern, their securities can be fully reinstated.” He closed by emphasizing that the process is designed to give companies a fair and structured opportunity to correct course.

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