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Confronting Capitalist system in Sri Lanka: 1824-2024

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Historical transformation from Feudalism to Capitalism by 1824

by Jayampathy Molligoda

As we know, on March 2, 1815 the Kandyan Kingdom was formally ceded to the British by signing the Kandyan convention by the chiefs and the Governor, Brownrigg on behalf of the British. Thereafter, the year 1818 marks a real turning point with the defeat of the great rebellion of Uva- Wellassa, where the resistance of the people was broken and the British had laid claim to an all -island control.

According to eminent Historian, Professor K.M de Silva, British could not set up a unified administrative system for the whole island until the Colebrooke -Cameron reforms of 1829-1832, thus providing the administrative and legislative framework for a more liberal form of government for Sri Lanka. The establishment of plantation agriculture consolidated the unification by providing an economic basis for it. In the 1820’s, Governor Barnes’s network of roads built with the help of the traditional ‘rajakariya’ system (a feature of feudalist society) placed the control of Sri Lanka firmly under British hands.

As for the Island’s trade, the European agency houses were established in 1824 and then Governor Barnes decided to stop importing goods on account of the government, thus halting the monopolistic structure of the government’s economic activities through East India Company. Based on Colebrooke recommendations, the ‘Savings Bank of Ceylon’ was established in 1832 and money became freely available. Several historians and scholars including Ralph Peiris, Senaka Bandaranaike, Professor W.I Siriweera are of the view that pre-modern Sri Lankan society was feudal.

From the middle of the first millennium up to 1830, ‘feudal’ characteristics were predominant in the Sri Lankan society. The colonial powers including the British continued to maintain the state trade monopoly until the period up to 1825. Thereafter, the road and railway network developed and thus facilitated easy communication and opportunities for social mobility.

Internal and foreign trade expanded along with banking and money circulation. Governor Barnes (1824) is credited with the construction of the first major road under the British where he constructed a better and shorter road from Colombo to Kandy. Feudalism withered away with Colebrooke reforms and commercial capitalism in Sri Lanka started with the plantation crop culture.

The foundation of a class society was laid only with the implementation of Colebrooke reforms. As a result of the capitalist transformation, there emerged a class society based on the production; bourgeoisie (rich), middle class and a labour force. Tea and coffee plantation workers were brought in from South India and their living conditions were poor.

In contrast to the plantation workers, urban workforce experienced some salutary effects of transformation from feudalism to capitalism as the rigidity of the caste system was reduced because birth status was not a condition of employment. The majority of the labour force outside the plantation sector were Sri Lankans but labour employment was open to all ethnic groups and both sexes, although most of the laborers were male. Those labourers who settled down in Colombo (and few other main cities) lived in slums where sanitary conditions were unsatisfactory. ( Prof W.I Siriweera,2023)

Socio/ economic transformation by 1924; after 100 years under capitalism:

The growth of the plantation sector and means of communications and associated infrastructure development in road and rail transportation greatly contributed to commercialization. Cities such as Colombo, Galle, Matara, Kandy, Jaffna, Anuradhapura, Nuwara Eliya and many other cities developed considerably. Shops were established near railway stations and even some imported commodities were freely available in village boutiques and products of the villages began to be circulated in other villages, although the local hand-loom industry was affected.

According to published literature by eminent historians, only the plantation and merchandize capital had contributed to capitalist growth and hardly any industrial manufacturing growth, except small scale coir and coconut oil industries. The production of arrack and toddy became popular and the government granted permission to open taverns to earn revenue to the general treasury and as a result, crimes too increased and many other social issues cropped up.

By the 1920’s, we have seen a contraction of world trade due to World War 1914-1920 followed by the Great Depression of the late 1920’s. The British Government imposed restrictions on shipping and controls on tea and coconut imports from Sri Lanka.  With the disruption of food imports and stagnation of the plantation sector, there had been a revival of interest in peasant agriculture and development of the dry zone.

Further, the government wanted to liberalize the system of alienating the crown lands in order to accommodate the peasants. In the 1920’s under a new system, leasehold tenure system was granted to the peasants. It was also decided to appoint a Land Commission and there was a close link between the reappraisal of the land policy and the increase in population (22.5 million according to 2021 census from 1.5 million 100 years ago.)

Further improvements to the Capitalist system through Constitutional bases during the last 100 years-1924 -2023 To date:

With the formation of the Ceylon National Congress (CNC) under P. Arunachalam, the educated Sri Lankans agitated for greater share in the administration. As a result, more reforms were introduced during the 1920’s. One reform was popularly known as Manning reforms and the colonial office in 1927 appointed the ‘Donoughmore’ commission to make a new constitution.

One of the major reasons for the reforms was the Anti-Imperialist movements originating in Sri Lanka with the ‘Suriyamal’ movement in 1926 and formation of Youth leagues by Marxists (LSSP, CPSL). During this period, immigrant workers joined the indigenous working class under A.E. Gunasinha’s leadership. Urban workforce resorted to strike action due to poor working conditions.

Exactly 100 years under the capitalist system, there was a general strike in 1923 and in Lake House in 1929 and the Galle Face Hotel in 1934. After the formation of the State Council in 1931, the CNC continuously agitated for complete independence. As the Indian nationalist movement gained ground, the British government outlined a set of proposals in 1943, but Marxists opposed the transitional status, although moderates agreed to the proposals.

The white paper on constitutional reforms, which included Soulbury proposals, was placed before the State Council in 1945 by D.S Senanayake and was approved. Later, he informed the colonial office that he could not successfully challenge the Marxists if dominion status was not granted.

On August 15, 1947, the first election to the House of Representatives was held under the Soulbury constitution and the opening of parliament on February 4, 1948 marked the end of the status of crown colony. During the next 70 years. The Sri Lankan leaders continued to maintain the capitalist system of governance up-to- date (Although some attempts were made to change it during the period 1971-1974 by Marxists within the 1970 government of Mrs Bandaranaike and outside, but it was not successful).

The Constitution titled, The Democratic Socialist Republic of Sri Lanka- 1979 by President J.R Jayewardene (with 21 amendments so far) introduced the present ‘Executive Presidential system’ and is still continuing. These constitutional provisions provided a solid base for smooth functioning of the capitalist system although some cracks have emerged. The writer is of the view, that at present, the majority of people are dissatisfied with the prevailing governance system.

Present status of the political economy and living standards of the people:

Much has been written on the failure of successive governments since gaining independence to provide even some basic needs of the people let alone improving the quality of life and overall economic development in Sri Lanka; therefore, there is no need to repeat over and over again some facts and figures to justify this claim.

As this writer has explained in many articles published since 2014, the Sri Lankan economy   has been recording a persistently high ‘twin deficits’ meaning (1) government budget deficits since independence and (2) Balance of Payments (BOP) current account deficit with rest of the world due to deficit in exports minus imports. And CBSL has been compelled to resort to ‘money printing’ more than what is required/desired level while the successive governments continued to borrow to bridge the gap thus increasing foreign debt service beyond sustainable levels.

The real issue has been that our exports as a % of GDP has come down from 28% in four to five decades to 12% especially since 2014 to date. As explained earlier, since 1824 mainly the merchandise, capital had contributed to our economy’s capitalist growth and hardly any industrial manufacturing growth. Even in the case of agricultural and plantation crops, due to high cost of production and low yields compared to products from other countries, our exporters have not been able to compete in the global marketplace on ‘cost leadership strategy’.

Many have already expressed serious concerns about the deep economic crisis in the country and its impact on the people of Sri Lanka, especially the poor and the vulnerable, particularly women. The government of the day has not focussed enough to address those badly affected segments, including SMEs, construction industry etc. and address those vulnerabilities. Already, poor and some middle-class families became poorer.

According to a survey conducted by the Department of Census and statistics recently, some 60% of the household’s income has decreased. Income disparity between the rich, middle class and the poor has also increased. The Sri Lankan society’s poverty problems are closely related to this wider problem- namely, the growing gap in the share of income going to the rich, the middle class and the poor. The recent increases of VAT up to 18% in addition to price increases of fuel, electricity, water, transport, food items etc. have really aggravated the burden of the middle class and poor.

 The grand idea of capitalism is that those with capital will apply it to create more wealth that enables to create more employment and jobs for everyone. Not only the wealthy benefit but their wealth will trickle down to other classes as well. However, according to more comprehensive research studies done recently by eminent economics of the calibre of Prof. Joseph Stiglitz and Thomas Piketty, the inequality will worsen under free market capitalism.

Growing income disparity is not only a disaster for the poor, but also a threat to the rich. Poverty breeds crime, beggars, prostitution, massive social protest movements and inability to gain access to education and training, which will seriously affect developing our human resource requirements for improving businesses.

These economists urge the governments to embrace real solutions: Investing in education, science, technology and infrastructure, offering more help to the children of the poor, doing more to restore the economy to full employment, introducing more effective and proper tax policies etc. It is essential to ensure that adequate social protection is provided. They believe our choice is not between growth and fairness- with the right policies we can choose and achieve both. (For a more thorough discussion of the adverse economic consequences of inequality, please see Joseph Stiglitz, ‘The Price of Inequality’ and Thomas Piketty, ‘Capital in the twenty -First century’)

 Need to project immediate future scenario during the election year- 2024:

In the event, the Government is unable to provide these solutions, social unrest will further increase and the ruling party unpopularity will increase, thus paving way for political forces demanding a General or Presidential elections sooner or later. Once again, the government of the day would have to abandon the IMF policy prescription. It is interesting to note that even the IMF, an organisation not taking radical positions, has taken up the position that inequality is associated with instability. For details, please see ‘Inequality and unsustainable growth; two sides of the same coin? – IMF staff discussion note- 2011’.

 The writer is of the view that in the new year 2024 (exactly after 200 years of capitalist form of governance) there is a probability or a likely scenario that a major transformation of a ‘system change’ may take place including a complete abolition of the Executive Presidential system.  It is not impossible to obtain two thirds majority in Parliament to change the Constitution and adopt a new constitution approved by people in a referendum by early 2025 and thus ending the capitalist system that prevailed over 200 years in Sri Lanka. Whether it will provide tangible benefits to Sri Lanka and its people is yet to be ascertained.

(The author is a freelance writer who previously served as Executive Deputy Chairman/CEO at Bogawantalawa Tea Estates PLC and as Chairman, Sri Lanka Tea Board)



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Approach to constitutional reform

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SWRD Bandaranaike

The S.J.V. Chelvanayakam KC Memorial Lecture delivered on 26 April, at Jaffna Central College, by Professor G.L. Peiris, an academic with outstanding credentials, was published, under the title, “Federalism and paths to constitutional reform,” in The Island of 27 April, 2026.

In Part II of the publication, titled “Advocacy of Federalism: Origins and Context,” Professor Peiris states: “At the core of political convictions he held sacrosanct was his unremitting commitment to federalism…”. Contrary to popular belief, however, federalism in our country had its origins in issues which were not connected with ethnicity. At the inception, this had to do with aspirations, not of the Tamils but of the Kandyan Sinhalese. The Kandyan National Assembly, in its representations to the Donoughmore Commission in 1927, declared: “Ours is not a communal claim or a claim for the aggrandizement of a few. It is the claim of a nation to live its own life and realise its own destiny”.

Commenting on S.W.R.D. Bandaranaike’s views, Professor Peiris states: “Soon after his return from Oxford, as a prominent member of the Ceylon National Congress, was an advocate of federalism. He went so far as to characterise federalism as ‘the only solution to our political problems”.

THE COMMON THREAD

The thread that is common to the sources cited above is that while their focus was on the political framework, there is not even a hint as to the territorial units to which the political framework of federalism is to apply. With time the Tamil “nation” claimed that their federal State was to be the Northern and Eastern Provinces of Sri Lanka. However, the Kandyan “nation” was silent on this issue. Since Britain annexed the Kandyan Kingdom and the unified, then Ceylon in 1815, for all intents and purposes it would be reasonable to assume that the claim of the Kandyan “nation” was to be the region under the last Kandyan King, leaving the Western and Southern coastal regions for the Rest of the “nation”.

Chelvanayakam

Sri Lanka, while being a colony under the British, was not interested in political frameworks. Instead, the British were interested in structural arrangements that facilitated Administration. It is evident from the evolutionary processes explored by the British that subdivided units of a State are critical not only for effective Administration but also for the political framework that ensures political stability. Federalism, advocated by the Tamil and Kandyan Leaderships for territorial units, as claimed by them, would inevitably lead to political instability. The lesson to be learnt is not to start with political frameworks, such as Federalism, but to first decide on the territorial units, within which a State functions, to ensure stability, and then frame political aspirations of the People belonging to such a State, in order to ensure political and structural stability.

LESSONS of HISTORY

Material from an article, dated 16 June, 2016

“When the British took control of the Dutch possessions in former Sri Lanka, in 1796, the Kandyan Kingdom was independent and separate from the Maritime region. The Kandyan Kingdom consisted of the “central highlands with the eastern and southeastern coastal strips”. It was after ceding of the Kingdom, at the Kandyan Convention of 1815, and after the rebellion of 1817-1818, that the two regions were merged. However, despite the merger, the administration of the two regions remained divorced from each other, with the Kandyan region being divided into 11 Districts, and the Maritime region into five, creating a total of 16 Districts for the administration of the whole country (Sir Charles Collins, Public Administration of Ceylon, 1951, p. 49).

“The above arrangements continued until the recommendations of the Colebrook – Cameron Commission. In 1832, the recommendations of the Commission were accepted , “… and the separate administrative system for the Kandyan provinces was abolished and amalgamated with the territories on the littoral acquired from the V.O.C. in a single unified administration structure for the whole island. The existing provincial boundaries within the two administrative divisions – the Kandyan and maritime provinces – were redrawn, and a new set of five provincial units, of which only one – the Central Province – was Kandyan pure and simple, was established. The new provincial boundaries cut across the traditional divisions and placed many Kandyan regions under the administrative control of the old maritime provinces” (K.M.de Silva, A History of Sri Lanka, 1981, p. 263), continued until as late as 1889, resulting in nine Provinces for the sole purpose of facilitating the Colonial administration. In point of fact, the Province never functioned as the administrative unit. Instead, the administrative unit was essentially the District, and the situation has remained so throughout the Colonial period and into this day. According to Sir Charles Collins cited above: “Most provinces were divided into districts, each Government Agent having charge of his own district, with general supervision over the whole province. The districts not in the direct charge of Government Agents were under the control of assistant Government Agents”. (Ibid, p. 62.)

PRIORITISING POLITICS OVER STABILITY

The lesson learnt by the British was that if a Colony is to be Administered effectively, the Colonizer had to choose the most appropriate unit of administration. Similarly, to an Independent Sovereign State, Territorial Stability should be its foremost priority. This means deciding on the most structurally secure territorial unit within which political power sharing should operate and not prioritise political frameworks, such as Federalism, at the expense of the structural stability of the State. Political instability would have been inevitable had Sri Lanka succumbed to pressures from the Tamil and Kandyan Leaderships.

Although Britain was not concerned with territorial stability, they recognised that the District was the most effective unit for effective administration. In fact, the 1977 Constitution describes the Territory of Sri Lanka in terms of Administrative Districts. Despite this, it was the Indo-Lanka Accord that first recognised the Northern and Eastern Provinces as political units. Following this, the 13th Amendment of 1987 extended this recognition to all Provinces.

The adoption of the Province as the political unit may not have had an impact on the territorial integrity of the Sri Lanka State, except for the Northern and Eastern Provinces, judging from the events that followed over three-plus brutal decades. The transformation of the territory of Sri Lanka, from Administrative Districts to Provinces and Provincial Councils, is the direct result of prioritising politics over territorial stability. For India to be the handmaiden of this transformation is beyond comprehension because instability in Sri Lanka, in whatever form, would impact on India’s own territorial integrity. This serious blunder cannot be ignored any further for the sake of both Sri Lanka and India. It is imperative that measures are taken to engage in a course correction through Constitutional Reform.

PROPOSED CONSTITUTIONAL REFORMS

The path to Constitutional Reform should start with the territorial subdivision of the Sri Lankan State into Districts, not only to ensure the territorial integrity of the State but also to improve administrative and development efficiencies coupled with Local Government units; a lesson learnt from the British. Any political powers devolved/decentralised to Districts should be the responsibility of District Councils, elected by representatives to Local Governments within each District.

Political power at the Centre should reflect the commitment to a single Sri Lankan Nation, through an elected Legislature, with Executive Powers being shared by a President/Prime Minister, with a Cabinet made up of all communities, in the ratio represented in Parliament. An attempt to share Executive Power with all communities, in an inclusive Cabinet, has not been the practice in the past, and under the present government, as well, despite its strident calls for unity and reconciliation. Consequently, the tendency for minority communities is to seek peripheral power to the maximum extent possible.

CONCLUSION

The approach to Constitutional making has been how best to accommodate political power in the form of Federalism, first by the Kandyan “nation” and later by the Tamil “nation”. The claim by the Tamil Leadership morphed from Federalism to a Separate State resulting in tragedies of an unimaginable order, to the point of threatening the very existence of the Sri Lankan State.

The current arrangement is based on Power being devolved to Provinces, in the form of Provincial Councils, with no regard the Province, makes to the territorial durability of the Sri Lanka State. How successive Governments hope to prevent threats to territorial vulnerabilities is to curtail the operation of sensitive provisions of devolved powers. This is being disingenuous.

On the other hand, the more direct and forthright approach to Constitutional Reform is to make the District the unit of peripheral power in order to ensure territorial stability and effective peripheral development and share Executive Power with communities in the ratio of their representation in the Legislature. The first could be achieved through a referendum and the second by the President/Prime Minister of any government. This approach prioritises territorial stability over political power; a change that has eluded policymakers. Therefore, it is imperative that territorial stability is given the foremost place in Constitutional Reform processes for the sake of not only Sri Lanka but also for India, for reasons of connectivity.

by Neville Ladduwahetty

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Time to get ready to face power

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The power cuts are already here. Perhaps, even before the date predicted by the Public Utilities Commision of Sri Lanka (PUCSL. The peak load has gone well past the threshold they indicated as the tipping point of 3030 MW of peak load. It is now will past 3100 MW and growing, perhaps triggered by the continued heatwave making the use of air conditioners and fans more frequent and by a wider group of consumers. The government insists there is no intention of power cuts but each of us have experienced some form of power outage, without notice, at some time or other.

It is in this scenario that the Ceylon Electricty Board (CEB), or whatever it is called now, had directed all roof top solar projects, over 300 MW capacity, to shut down for the period 10th April to 20th April.

This is in addition to the curtailment of all ground mounted solar and wind projects, and even mini hydro projects, without compensation, going on for some months.

One year of inaction by CEB with the problem staring in the face

If will be recalled that the same demand was made in April, 2025, after the debacle of the countrywide blackout on 9th February, 2025, whether caused by a monkey or otherwise.

The question to be raised is what steps have been taken by the then CEB, or the Ministry to anticipate the situation this year, too, and to try and mitigate the same.

The easy answer is absolutely nothing. If at all what has been done is unilaterally prevent any further addition of Roof Top Solar PV, under the provisions of the Surya Bala Sangramaya (SBS), is, undoubtedly, the only short term and economical means to add low cost renewable electrical energy to the grid.

The architect of the SBS, the Sustainable Energy Authority is deafening by their silence, when their signature project of prime national importance has been sabotaged, and now even the performance of the already installed systems are being curtailed.

This action is totally unbelievable when the use of expensive oil-based generation will continue unabated, even during the day, when there is so much solar energy already installed. Of course, the age-old excuse will be trotted out, of the non-firm nature of Solar and Wind and problems of grid stability, etc.

Many useful and practical solutions to face the growing issue of how to integrate the essential low cost but variable resources of solar and wind to the grid as an aftermath of the blackout were discussed over a year ago.

But nothing seems to have even been attempted. The most prominent among these was the proposal to add 300 MW of grid scale batteries, as indicated in the already-approved Long Term Electricity Generation Plan ( LTEGP 2024 – 2044,) of which 100 MW should have been in use by 2026. The tender for the addition of 16 X 10 MW battery storage at selected grid substations was called over a year ago. Some expectation of sanity

It is under these circumstances that the PUCSL called for a stakeholder consultation on the 10th April, 2026, after circulating a concept note, which was well attended. It was a breath of fresh air, in view of the downhill slide of the entire electricity sector in the recent months compounded by the raging controversy of the coal scam and the rapidly increased use of expensive diesel, in addition to the other fossil fuels, just to keep up the generation to match the demand. The double whammy of the doubling of the fuel prices , exacerbated the hit on not only the consumer’s monthly bill, but the national economy and balance of payments.

Therefore, it was most encouraging to note from the PUCSL’s concept note that sanity has prevailed at last. We have been demandin–g some concrete strategies and time based targets to rid at least the electricity sector from the use of expensive, polluting fossil fuels, commencing with oil. This is the only means by which the utility could hope to achieve some degree of economic and financial viability. They have continued to burden the consumer and the country by continually jacking up the consumer tariff, while ignoring any prudent means to clean up their Act. As a matter of interest, the CEB’s own data of 2023 shows that it is possible to save some Rs 113 Billion annually by replacing all oil-based generation using renewables. The country could have saved over $ 700 Million in Foreign Exchange and the Consumer Tariff could have been lowered by Rs 7.00 per Unit across all segments of consumers.

Therefore, the PUCSL concept paper out lines, some credible measures to eliminate the use of all of forms of oil for power generation in stages. The three tier of approach, outlined as option 1 to 3, reproduced here, should be commended for adopting a pragmatic approach, with very good chance of success.

Proposed options by PUCSL

(See Options 1 Peak Shaving Approach by 2027 and Option 2: Eliminating 2.06 GWh/day of diesel-based generation)

Considering even the recent past when we achieved a status of zero oil use, as compared to the present sorry status, this is not an extremely difficult task. We will have to substitute Solar PV to bridge the gap of reduced Hydro during dry months.

(See diagram 1)

RE Contribution 69% % Oil Usage 6.2 % No Diesel

(See diagram 2)

In Contrast on 30th March RE Contribution was only -43,5%

and oil use has gone up to -29.59%

However, as outlined in the introductory paragraphs of the concept paper, the driving force to promote this change is the early declaration of appropriately worked out tariffs for installation of storage batteries and delivery of the stored energy to the grid.

With the total lack of progress of proposals in the LTEGP 2025-2044 by the state institutions, it is prudent to assume any future initiatives can only come from private sector participation.

Using the power granted by the recently ratified Electricity Act NO, 36 (As amended) the PUCSL has moved with commendable speed to develop the Feed in Tariff declarations needed to enable the achievement of the above objectives and a further stakeholder consultation was held on the 24th of April when more detailed proposals were put forward.

However, although the responsibility of publishing the tariff remains with the PUCSL, unless the National System Operator ( NSO ), tasked with the planning and implementation of Electricity Sector developments , takes urgent action to implement the desired changes as a highest priority task, nothing will be gained to help the country to get out of this quagmire.

The Consumer Continues to be Burdened.

Further, as the time table proposed by the PUCSL itself indicates, even the first of the options can be implemented only in 2027, with the others following up to the year 2030.

These are very encouraging time targets and the consumers will eagerly await their achievement.

However, the threat of power cuts, as well as continuing increase in consumer tariff to fuel the use of diesel for power generation, is real and current. A further tariff increase of 18% has been demanded by the NSO, on top of the 15% granted on 1st April, 2026.

The Immediate Options Available to Consumers.

a) The CEB now refuses to provide any grid connection for integration of any rooftop solar PV systems under the Surya Bala Sangraamaya.

b) The only way available to the consumers is to install Off grid roof top solar systems with adequate batteries to be none dependent on the grid. Use the grid only during the off peak hours.

c) During most periods of the year, even under cloudy conditions there is some solar generation. To ensure the daily consumption is more than covered by the solar input and any surplus is used to charge the battery, to the level adequate to manage the evening and peak hour demand, the capacity of the solar panels and battery have to be determined.

d) It is to be noted that although only the relatively high-end domestic consumers could find the proposed scheme financially feasible under the present cost regimes, which will improve further when the second tariff increase is announced shortly, to those consuming over 250 Units/Month, their engagement has a sector wise positive implication which is beneficial to all levels of consumers.

e) The scheme will operate in an off grid mode, without exports to the grid at any time. Therefore, they will not contribute to the often voiced worries of over voltage, instability and variability in the national grid.

f) Once the PUCSL announces the required FIT and the NSO or the Distribution Companies institutes the necessary facilities, such as smart meters, such consumers, too, can further assist the grid by export of any excess they generate.

Proposal to Avoid Power Cuts Implementable by Domestic Consumers

There are several drivers which will attract the potential ” Prosumers” to adopt this option without delay.

* The consumer tariff will continue to rise

* Even the former Roof Top Solar Systems, without batteries, does not provide power during the power cuts or blackouts

* At present day prices, the investment is financially feasible, based on the savings of the current level of monthly electricity bill. A substantial bank loan can be comfortably settled from the savings

* Now cooking with electricity is no longer a financial burden but can save one from the cost and danger of LPG shortages and queues

* What you, do based on your economic ability, will be a service to all consumers as the resultant reduction of Peak Demand means the use of Diesel can be gradually reduced and the lower end consumers, too, will benefit.

* You will enhance your green credentials with your own financial benefits.

The overall benefit to the grid and other consumers

If the element of exorbitant cost of diesel-based generation is removed then there is no need for the increase of consumer tariff for all consumers.

What is more important is that trimming the peak load would drastically reduce the need for any power shredding that is happening on the sly now and thereby benefit all consumers,

The summary of Financial Analysis illustrating the viability based on currently available data is given here. This will improve drastically if a further increase in consumer tariff is granted, which appears inevitable. (See Table 01 – The basic data used for this analysis is available on request.)

by Eng Parakrama Jayasinghe

parajayasinghe@gmail.com

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From Coal to Solar: China’s sunken mines power a Green Revolution: Lessons for Sri Lanka

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A floating solar farm on a coal mining subsidence area in Panji district of Huainan, Anhui province, China, on June 7, 2017. (Image courtesy China Daily)

In a striking symbol of the global energy transition, vast stretches of once-abandoned coal mines in China have been reborn, not as relics of an industrial past, but as shimmering hubs of renewable energy.

What were once scarred landscapes, destabilised by years of mining, and later submerged by landslides and floods, have now been transformed into expansive artificial lakes.

Floating atop these waters are some of the world’s largest solar power installations, quietly generating clean electricity on a massive scale.

Among the most notable are the Fuyang Floating Solar Farm and the Huainan Floating Solar Farm. Together, they represent a remarkable engineering and environmental achievement.

The Fuyang facility boasts an installed capacity of 650 megawatts, producing approximately 700 million kilowatt-hours of electricity annually. Even more impressive, the Huainan project reaches a staggering 1 gigawatt capacity, generating nearly 1.8 billion kilowatt-hours each year. Combined, these floating giants produce enough electricity to power millions of homes without burning a single lump of coal.

A former General Manager of the Ceylon Electricity Board (CEB), a veteran electrical engineer, described the development as “a glimpse into the future of energy systems.”

“What China has demonstrated is not just technological capability, but strategic foresight. Turning environmentally degraded land into clean energy assets is the kind of thinking countries like Sri Lanka must begin to adopt,” he said.

Why solar on water?

Floating solar, or “floatovoltaics,” offers a range of advantages that traditional land-based solar farms cannot easily match.

Water naturally cools solar panels, improving their efficiency by an estimated 10 to 15 percent. In hot climates, this cooling effect can significantly boost electricity generation.

Additionally, the panels reduce water evaporation, a crucial benefit in regions facing water stress. By limiting sunlight penetration, they also help suppress algae growth, improving water quality.

Perhaps, most importantly, floating solar eliminates the need for large tracts of land. In densely populated or agriculture-dependent countries, this is a game changer.

A dual economy: Fish and power

In an innovative twist, some of these floating solar farms incorporate aquaculture beneath the panels. Known as the “fisheries + solar” model, it allows communities to cultivate fish in the shaded waters below, creating a dual-income system, energy production above, food production below.

This integrated approach not only maximises resource use but also supports local livelihoods, blending sustainability with economic resilience.

Environmental dividends

The environmental benefits are substantial. The Fuyang project alone reduces carbon dioxide emissions by an estimated 580,000 tons annually, while the Huainan facility cuts emissions by around 1.6 million tons each year.

Beyond emissions, these projects reclaim landscapes once deemed unusable—areas heavily damaged by coal extraction. In doing so, they rewrite the narrative of industrial decline into one of ecological restoration and innovation.

Sri Lanka: A nation poised for floating solar For Sri Lanka, the implications are profound.

Unlike China’s abandoned coal pits, Sri Lanka possesses thousands of irrigation tanks, reservoirs, and hydropower catchments that could serve as ideal platforms for floating solar. From the ancient tank systems of the dry zone to major reservoirs like Victoria Dam and Randenigala Reservoir, the country holds untapped potential to generate clean electricity without sacrificing precious land.

The country’s reliance on thermal power, particularly during drought periods when hydropower declines—has long been a challenge. Floating solar could provide a stabilising solution, reducing dependence on costly fossil fuels while complementing existing hydroelectric infrastructure.

Energy analysts note that integrating floating solar with hydropower reservoirs can create a hybrid system: solar power during the day, hydropower balancing supply at night. This synergy enhances grid stability and reduces overall generation costs.

The former CEB official stressed the urgency:

“Sri Lanka cannot afford to delay. With rising energy demand and climate pressures, we must explore every viable renewable option. Floating solar on our reservoirs is one of the most practical and scalable solutions available.”

Challenges and the road ahead

However, experts caution that careful planning is essential. Environmental assessments, grid integration, and financing mechanisms must be properly addressed. Community engagement, especially where fisheries are involved—will also be key.

Yet the blueprint already exists.

China’s transformation of submerged coal mines into renewable energy hubs offers more than inspiration—it provides a working model. For Sri Lanka, adapting that model to its own geography could mark a decisive step toward energy independence.

China’s floating solar farms stand today as one of the clearest symbols of a world in transition—from fossil fuels to renewables, from environmental degradation to restoration.

For Sri Lanka, the message is equally clear: the future of energy may not lie on land alone—but on water, where sunlight meets innovation.

If harnessed wisely, Sri Lanka’s  vast network of reservoirs could one day mirror that transformation, turning calm waters into engines of sustainable growth.

by Ifham Nizam

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