News
Corruption and red tape keep out substantial foreign investment into mining industry
Sri Lanka had failed to attract substantial foreign investment in the mining industry during the last 50 years mainly due to the high sovereign risks associated with Sri Lanka, Chirantha Weerawardena, a mining engineer, said during a seminar, titled ‘Blueprint for Developing a Sustainable Sri Lankan Mining Industry by Attracting Foreign Investment,’ organised by the Institution of Engineers Sri Lanka (IESL) recently.
Eng. Weerawardena said that mining was a long term investment and investors in the mining sector werevery concerned about the political and economic stability of a country. “They are worried about abrupt changes to mining related law and regulations, significant and abrupt changes to tax and royalty regimes, the lack of rule of law which can result in losing mining rights without valid reasons and the lack of an independent mechanism for appeal or arbitration against the regulator’s or minister’s decisions.”
Eng. Weerawardena said for a mining company exploration is a high risk investment because significant funds need to be spent before hitting an ‘economic deposit.’ Given that mining is an investment spanning 10 to 40 years, once an investment is made, a mining company is “trapped” as it can’t leave easily.
“A few years ago a London Stock Exchange registered company spent about 16 million US dollars to carry out initial exploration of three sites they acquired in Sri Lanka. Then the Geological Survey & Mines Bureau (GSMB) suspended the licence citing an issue with the local ownership requirement of the mining licence holder. In Sri Lanka there is a rule saying an exploration license can be taken by anyone, but the mining licence can be only taken by a company with majority local ownership. The company went to court. I have no problem with this law, but the GSMB should have brought this up at the start. And then the licences were reinstated by the Secretary to the Ministry of Environment under statutory appeal process. Now the issue has been sorted out and the company signed an MOU with the LB group in China – the second largest company in the world in TIO pigment manufacturing, who will invest 81 million dollars to build a mining separation plant at Oluvil,” he said.
That had been one of the two serious investments in the mining sector in the last 50 years, Weerawardena said, adding that the above case demonstrated that Sri Lankan officials and politicians were not interested in facilitating foreign investments and sometimes went of their way to make life difficult for investors. Such actions mainly stem from corruption, especially when they want kickbacks.
Weerawardena said resource nationalism, which was the tendency of people and governments to assert control over natural resources located in their territory, was also tied with sovereign risk. However, resource nationalism is based on several valid and good points and this is not inherently bad.
“However, we must realise politicians and some ‘experts’ sometimes overestimate in-situ value of mineral deposits for various reasons. There is also a widespread anti-mining sentiment among the people as well.
“We have to also be scientific when we estimate the in-situ value of deposits. There are various costs associated with extracting the minerals in the ground. There are ship loading costs, transport costs, processing costs, mining costs, brownfield drilling cost, overheads and amortisation of capital. We have to take these costs into consideration before we value the mineral deposits we have,” he said.
He added that mining is an economic multiplier. In Australia, each mining job creates at least four others in the form of support services.
However, mining can also have a negative impact if a country does not manage its operations properly, he said.
“You can end up degrading a non-renewable resource without much to show. This has happened in Latin American and African countries. Because mining is so profitable, it can lead to corruption and social disharmony among stakeholders and communities. The worst-case scenario is that there can be foreign interference in the country. If we understand both the positives and negatives of mining, the country can go through the correct process to harness the benefits of mining.”
He added that Sri Lanka is a country with high sovereignty risk. Despite opening up the economy in 1977 and although Sri Lanka has several world-class deposits, the country has only got a few mining investments because of this.
“We need to understand that mining companies prefer stable policies. They can’t be lured by promises of cheap minerals. You also need less corruption and red tape. Then mining companies will come to Sri Lanka,” he said. (RK)
News
CTU: Teacher shortage casts doubt on govt.’s education reforms
By Chaminda Silva
The government’s ambitious plans to overhaul Sri Lanka’s school education system and introduce new curricula could face serious implementation difficulties, with teacher unions warning that a longstanding and severe shortage of teachers remains unresolved.
The warning came as Prime Minister Dr. Harini Amarasuriya announced yesterday that new curricula would be introduced for Grades 2 and 6 next year, while also stating that the government planned to recruit around 30,000 new teachers across the education system by February.
However, the Ceylon Teachers’ Union (CTU) questioned whether the government would be able to provide the teachers required to implement the proposed reforms, claiming that the recruitment process itself had become mired in problems.
CTU General Secretary Joseph Stalin accused the government of making misleading claims about teacher recruitment and said the shortage that had affected schools for more than a year would continue into next year.
“There is currently a severe teacher shortage in the school system,” Stalin told a press conference in Colombo yesterday.
He said the government had previously acknowledged that there were about 46,000 teacher vacancies in the school system, but the figure was later revised to around 36,000.
“Those vacancies have remained unfilled for more than a year and a half. The school system has continued to operate with a severe teacher shortage throughout this period,” he said.
Stalin questioned how the government intended to introduce new curricula while thousands of existing teaching vacancies remained unfilled.
He said the Government had initially announced plans to recruit 23,000 teachers, despite the number of vacancies being significantly higher.
Although a gazette notification, relating to the recruitment had been issued, only around 17,000 applicants had been summoned for the initial round of interviews, he added.
Stalin said interviews were expected to begin in November and that appointments would, therefore, be made only from January onwards.
“If there are more than 36,000 teacher vacancies, the Government has decided to recruit only 23,000 teachers, and only around 17,000 have been called for interviews.
Who will take responsibility for the remaining vacancies?” he asked.
He said the problem was not merely one of numbers but also involved the Government’s recruitment procedure.
According to Stalin, shortcomings and ambiguities in the gazette notification issued for the recruitment examination had contributed to the present crisis.
“We primarily believe that the lack of proper procedures in the gazette notification issued for the recruitment examinations has contributed to this crisis. The ambiguities in the notification itself have led to the recruitment process becoming a major issue,” he said.
The shortage was also affecting the transfer system, Stalin mentioned.
A large number of teachers had been unable to obtain transfers because replacements were not available, with some teachers remaining at the same school for 12 or 13 years, he claimed.
As replacements had not been recruited, such teachers would have to remain at their present schools for another year, he said.
“This is a serious crisis. However, the situation is even more critical for students who are left without teachers,” Stalin said.
He also questioned the Government’s plans to close schools with fewer than 50 students.
“We suspect that this move is to take the teachers from these schools and redeploy them to other schools to fill vacancies there.”
The union’s concerns come at a time when the Government is pushing ahead with a major overhaul of the education system.
Addressing the Badulla District Women’s Conference yesterday, Prime Minister Amarasuriya said the Government would introduce new curricula for Grades 2 and 6 next year as part of its wider education reforms.
She said a new curriculum had already been introduced for Grade 1 this year, while new curricula for Grades 2 and 6 would be introduced over the next two years.
The Prime Minister said the Government was developing a new education system aimed at securing the future of all children, with the emphasis shifting away from producing students, focused solely on examinations.
The Government’s objective was to nurture a generation capable of facing future challenges successfully and confidently, she said.
The Prime Minister also announced that interviews for the recruitment of 17,000 teachers would commence on November 20.
She said approval had also been granted to recruit 2,000 academic staff members for the university system, with that recruitment process already under way.
The Government plans to recruit approximately 30,000 new teachers across the education system by February next year, she said.
A special programme would also be implemented to improve infrastructure facilities in schools, the Prime Minister added.
The contrasting positions highlight a potentially significant gap between the Government’s education reform timetable and the capacity of the existing school system to deliver it.
While the Government has set out a timetable for introducing new curricula and recruiting tens of thousands of teachers, the CTU argues that the existing shortage, delays in recruitment and unresolved transfer problems could leave schools struggling to provide adequate teaching staff when the reforms take effect.
With the Government planning to introduce another round of curriculum changes next year, the ability to fill vacancies in time could, therefore, become a crucial test of whether its broader education reform programme can be implemented as planned.
News
Norochcholai to remain offline for several days after blackout
The Norochcholai coal power plant will remain disconnected from the national grid for several days following Saturday’s countrywide power failure, as authorities continue to follow safety procedures after the incident.
The National System Operator (NSO) said the 810-megawatt plant had been shut down as a precaution after the sudden power outage on October 17 and would not be reconnected to the grid until the necessary safety measures were completed.
The temporary loss of 810 MW of generating capacity would be managed through careful electricity supply arrangements to minimise the impact on consumers over the coming days, the NSO said.
It said the prevailing rainy weather was expected to help sustain hydropower generation at high levels, while a projected decline in electricity demand would further ease pressure on the system.
The countrywide blackout occurred at around 11.43 a.m. on October 17 after a generating unit disconnected from the national grid, creating an imbalance that caused the entire power system to collapse within less than 30 seconds.
Restoration efforts began shortly afterwards. By 12.11 p.m., major hydropower generating units had been brought back online and the power system was restarted simultaneously in four separate sections.
The restoration process was complicated by small-scale power generation facilities that were not under the direct control of the system control centre. However, electricity supplies were progressively restored through the activation of distribution feeders from 12.37 p.m.
By around 3 p.m., power had been restored to essential services, including major hospitals, water treatment plants and the airport.
Grid substations across the country had been reconnected by around 5 p.m., restoring electricity to the majority of consumers, the NSO said.
The operator stressed that the sudden disconnection of a generating unit as a safety measure was a normal occurrence at power plants. However, such a disconnection resulting in a complete collapse of the national power system was not considered normal.
An internal investigation has, therefore, been launched to establish the sequence of events that led to the islandwide outage and determine its underlying causes, the NSO said.
News
President links businessman held with arms to politicians
By Norman Palihawadane
President Anura Kumara Dissanayake yesterday said a businessman, arrested with a caches of firearms, ammunition and hand grenades, had links to a politician, as authorities continued investigations into the seizure.
Addressing a public gathering in Badulla, the President said the suspect was among those being investigated in connection with operations targeting organised crime and that authorities were aware of his political connections.
He also referred to a video footage allegedly showing the suspect firing at people in the Weliweriya area, describing it as an example of the dangerous activities associated with individuals possessing illegal firearms.
The 38-year-old businessman, who is reportedly the owner of a cinema, and a relative of a politician, was arrested following a search conducted by officers of the Colombo District Crime Division at the cinema on Hanwella Road, in the Kirindiwela Police Division, on October 17.
Police said the search had been carried out based on information received by investigators.
The weapons and ammunition seized included two foreign-made pistols, a revolver, a foreign-made repeater firearm and a foreign-made 12-bore firearm.
Police also recovered hundreds of rounds of ammunition, including 398 rounds of 12-bore ammunition, 278 rounds of 9mm ammunition, 49 rounds of .32-calibre ammunition and 3,083 rounds of .22-calibre ammunition, along with two live hand grenades.
The suspect, a resident of the Millathe area, is being questioned as investigations continue.
The Police Media Division said police would seek a detention order to facilitate further questioning of the suspect and advance the investigation.
The Colombo District Crime Division is conducting further investigations into the cache of weapons and the suspect’s alleged activities and connections.
-
Latest News7 days agoNissanka’s return headlines Sri Lanka’s Test squad against Pakistan
-
News6 days agoSri Lanka, India caught in US-Iran ship crisis
-
Latest News7 days agoImran Khan’s PTI braces to fight federal takeover of Khyber Pakhtunkhwa
-
Latest News6 days agoMissiles intercepted near Riyadh after Saudi coalition hits Yemen fuel depot
-
News3 days agoAsgiri Mahanayake calls for immediate release of Gnanasara Thera
-
Features2 days agoKotahena:A Small Enclave, An Extraordinary Legacy
-
Latest News6 days agoKusal Mendis’ unbeaten 87 hands Sri Lanka consolation win
-
News7 days agoMahinda and Shiranthi hospitalised
