Opinion
Devil dancing on edge of an abyss!

We are all concerned of the yawning abyss before us. Some factors are beyond our control and others have fairly possible to bypass with careful manoeuvring. There are all kinds of players lining up in this situation, each with his or her own game plans. Those in authority are hell bent on preventing surprises or political debacles.
There is an impending danger which all of us have to be mindful of. Situation manifests in different ways, and the causative factors are global, but we have to adopt mitigatory measures.
There is a debate on the issue, involving people ranging from the ordinary folks to academics.
Rising inflation
Many have started pinpointing at the rising inflation figures and most of them refer to it as a highly vicious phenomenon. They also point out that the increasing prices, printing of money and depleting foreign reserves are the contributing factors. As we are caught up in the middle of these bewilderments I happened to, playing the role of daughter “Asani in the Wijewardane episode”, (which has become extremely popular among the ordinary folks), examine and search some written facts about these highly controversial issues by more modern economists. To my extreme delight and surprise I came across the following;
“… an exceptional tax on capital is the best way to reduce a large public debt. This is by far the most transparent, just and efficient method. Inflation is another possible option, however. Concretely, since a government bond is a nominal asset,(whose price is set in advance and does not depend on inflation) rather than a real asset {whose price evolves in response to the economic situation, generally increasing at least as fast as inflation, as in the case of real estate and shares of stock}, a small increase in the inflation rate is enough to significantly reduce the real value of the public debt. With an inflation rate of 5% a year rather than 2%, the real value of public debt, expressed as a percentage of GDP, would be reduced by more than 15% (all other things equal) which is a significant amount.”
The author Thomas Piketty, who was quoted recently by an ardent Communist leader here in Sri Lanka, has addressed several age old orthodox economic pronouncements in a rather revolutionary manner while also considering the impact of such old theories in retrospect rather than the projected viewpoints when they hypothesized those, has provoked much thinking throwing more light on the subjects.
He has further said, “Indeed, it is important to understand that without an exceptional tax on capital and without additional inflation, it may take several decades to get out from under a burden of public debt as large as it that which currently exists …”
This is highly relevant for us to examine in the context of the plight we are in today.
Role of the Central Bank
What is the Central Bank doing to address the economy?
We know one thing. The Central banks do not create wealth, but they are there to redistribute it. They merely create financial assets and liabilities, which when created always balance each other. They cannot augment capital. It will be a utopian imagination to think that Central Banks could create capital under their powers. It would be absurd and astonishing if it could happen. The Central bank cannot set the rate of inflation nor can they force the economy to resume its growth. “the liquidity created by the Central Banks probably avoid deflation and depression ….”
Central Banks in their limited ways have intervened in tiding over difficult situations and at times of serious economic recessions such as what the world experienced in 2008. All economists regard Central banks as the lenders of the last resort and they will intervene in doing whatever is possible to avoid a financial collapse. Central banks are required to create the liquidity necessary to save the troubled banks, and avert a collapse in the financial system.
Foreign Exchange Crisis and depleting Reserves
Many people talk about this. Some of course use that as a criticism to accuse the government to gain political mileage. It is astonishing to note that they are also offering to help the government to overcome the problem but on conditions of joining the fray (band wagon) of the government.
So their main concern is how to get into power and not help the country to overcome a difficult period per se. What kind of politics is this ? Ours is a country which depends heavily on external sources to maintain our resources. If we analyze the potential sources we could see this clearly. Our principal sources of Exchange income are from Exports, Tourism and Foreign Remittances. The first two are certainly beyond our control. The global situations are directly applicable and influence our sources. The global situation for exports and Tourism are both extremely fragile being either affected totally or restricted in an irregular manner due to the pending Pandemic ups and downs. So, the only sector we could positively fix our aims and targets for improving is the remittance area.
Our annual income from remittances remained around 7.1 Billion US$ till 2020. But with the onset of the Pandemic and the other disadvantages built around the exchange parity rates the value of remittances drastically came down.
Now it is in the region of approximately 3 Billion US$. The positive factor underlying this position is that we are left with a clean target of about 4 Billion US$ to chase behind to restore out original position. We have to adjust our policy packages immediately to meet this requirement. Let us find out why the amount has fallen and take steps to address the reasons. One obvious thing is the highly organised illegal fund transfer system. They offer high rates because of the currency shortage the country and the problems banking system is facing. Our policy makers should know that it is not possible to challenge this by offering the prevailing black market rate to the prospective remitters. Because the Black marketeers will increase their rate following any Govt. increase. We have to resort to schemes offering other incentives to the remitters which the black market cannot offer. The foreign employed people will get tempted and attracted by those making them to decide to send the remittances through formal channels. But the incentives we offer should be unique, uncommon and special for those employed overseas. The other important element is they should have immediate impacts. Hence our policy package should comprise of short term and medium- term benefits accruing to those remitting funds through official channels.
Offering Rs 10 as an incentive to those who can chase behind Rs 40 sounds a little awkward and not practical. Instead, we will have to offer the foreign employed persons to import vehicles under concessional duties by making them to pay all charges in foreign exchange. If they have to fulfil certain eligibility requirements to qualify for this package they will readily do so. There are many other attractive areas of importance to those employed overseas which can be extended as effective incentives to entice them to remit their earnings through official sources.
The resolution of the crisis should not be an excuse for rejected politicians to cling on to positions of power. They should be exposed for their hypocrisy so as to prevent them from deceiving the public and they will not be able to come to power in this manner. If they are interested in developing the country, they should come up with policies attractive and benefical to people.
Tennekone Rusiripala
Opinion
Power corrupts …

Only America could re-elect an extremist like Trump.
There are planned protests across the US today against President Donald Trump and his adviser billionaire Elon Musk.
More than 1,200 “Hands Off!” demonstrations have been planned by more than 150 groups – including civil rights organisations, labour unions, veterans, fair-election activists and LGBT+ advocates.
This includes a planned protest at the National Mall in Washington as well as locations in all 50 states.
They are in opposition to Trump’s actions: slashing the federal government, his handling of the economy and other issues.
Musk has played a key role in Trump’s second administration, leading efforts to downsize the federal government as head of the newly created Department of Government Efficiency.
Organisers hope these demonstrations will be the largest since Trump came to office.
Speaking of Musk, let’s see how Trump’s second term has impacted America’s richest men …?
Countries across the globe are planning their response, or lack thereof, to Donald Trump’s tariffs.
China responded to Trump’s 34% tariff with its own levy of the same percentage on US imports.
According to state news agency Xinhua, China has accused the US of using tariffs “as a weapon” to suppress Beijing’s economy.
The country’s foreign ministry added that the US should “stop undermining the legitimate development rights of the Chinese people”.
It also warned there were no winners from and no way out for protectionism.
China also claimed that the US tariffs violated World Trade Organization rules – rules it itself has broken a number of times.
Professor Wang Wen, trade expert at the Chongyang Institute for Financial Studies, spoke from Beijing to Kamali Melbourne. He outlined why he believed the tariffs would eventually benefit China, and why Beijing would “never yield” to the US president.
“The basic strategy of China’s tariff policy against Trump is to count on reciprocal rules and defend China’s national interest and dignity. China will never yield to Trump on the issue of tariff war,” he said.
However, Xi Jinping is no democratic leader either, given to expansionism by hook or crook.
China’s booming economy has opened up many opportunities to achieve its sinister objectives – massive investments which weaker economies fall into and become easy prey.
Sri Lanka is no exception. Caught in the middle are the smaller nations who are confused and worried how best to stay alive.
Sunil Dharmabandhu
Wales, UK
Opinion
Praise to ex-President Ranil Wickremesinghe!

In the despicable absence of an urgent practical response on the part of the JVP-Anura Kumara Dissanayake-led NPP government to the devastating 28th March earthquake in Myanmar, ex-president Ranil Wickremesinghe has made a very timely and sensible proposal regarding how to assist our disaster stricken fellow humans in that country. ex-president Wickremesinghe! Thank you very much for saving, at least to some extent, Sri Lanka’s still unsullied reputation as a sovereign state populated by a most humane and hospitable people. You have again demonstrated your remarkable ability to emerge as an able state level troubleshooter at critical moments, this time though, just by being a mentor. It is a pity that you don’t think of adopting a more universally acceptable, less anglophile version of principled politics that will endear you to the general electorate and induce the true patriots of the country to elect you to the hot seat, where you will have the chance to show your true colours!
The ordinary people of Myanmar (formerly called Burma) are remarkably humble, polite and kind-hearted just like our fellow ordinary Sri Lankans. There’s a natural cultural affinity between us two peoples because we have been sharing the same Theravada Buddhist religious culture for many centuries, especially from the 4th century CE, when Buddhism started making gradual inroads into the Irrawaddy Valley through trade with India. Whereas Buddhism almost completely disappeared from India, it flourished in Sri Lanka and Burma. Nearly 88% of the 55 million present Myanmar population profess Buddhism, which compares to 72% of the 22 million population in Sri Lanka. Wickremesinghe has been mindful enough to take a glance at the historicity of close Myanmar-Sri Lanka relations. And he didn’t mince his words while giving some details.
At the beginning of his statement in this connection (which I listened to in a video today, April 1, 2025), Ranil Wickremesinghe said that our government has expressed its sorrow (but little else, as could be understood in the context). Countries near and far from Myanmar including even partly affected Thailand, and India, China, and distant Australia have already provided emergency assistance. Referring to the special connection we have with Myanmar as a fellow Theravada Buddhist country, he said that both the Amarapura and Ramanna nikayas brought the vital higher ordination ritual from there. We must help Myanmar especially because of this historic relationship.
When an earthquake struck Nepal, the birthplace of the Buddha, in 2015, we sent an army team to assist. On that occasion, Sri Lanka was the second country to provide relief, India being the first, with China becoming the third country to come to Nepal’s help. Today, India, Thailand, Malaysia, China and Australia have dispatched aid by now. Last year Sri Lanka gave 1 million US Dollars for Gazan refugees. We need to take a (meaningful) step now.
Wickremesinghe proposed that the army medical corps be sent to Myanmar immediately to set up a temporary hospital there. The necessary drugs and other materials may be collected from Buddhist and non-Buddhist donors in Colombo and other areas.
Emphasising the ancient friendly relationship between Sri Lanka and Myanmar, Wickremesinghe mentioned that King Alaung Sithu I (of the Pagan Dynasty, 1090-1167 CE) sent help to (Prince Keerthi who later became) King Vijayabahu the Great (1055-1110 CE) to defeat and drive away from the island the occupying Cholas after a 17 year long military campaign. The grateful Lankan monarch Vijayabahu, during his reign, offered the Thihoshin Pagoda (name meaning ‘Lord of Lanka’ pagoda, according to Wikipedia) and a golden Buddha image to the Myanmar king. (This pagoda is situated in Pakokku in the Magway region, which is one of the six regions affected by the recent earthquake. I am unable to say whether it remains undamaged. Though the monument was initiated during Vijayabahu’s lifetime, the construction was completed during the reign of King Alaung Sithu I {Wikipedia}).
Wickremesinghe, in his statement, added that it was after this that a strong connection between Sri Lanka and Myanmar started. In some Buddhist temples in Myanmar there are paintings by ancient Lankan painters, illustrating Jataka stories (Stories relating to different births of Buddha). Among these, Wickremesinghe mentioned, there is a painting depicting the duel between (the occupying Chola king of Anuradhapura) Elara and (his young native challenger from Ruhuna prince) Dutugemunu. (Although Wickremesinghe did not talk about it, a fact well known is that there is a copy of our Mahavamsa in Myanmar. In reporting the ex-president’s speech, I have added my own information and information from other sources. I have put this within parentheses)
Let’s hope President Anura Kumara Dissanayake is wise enough to derive some benefit from his predecessor’s mentoring in the name of our beloved Motherland.
Rohana R. Wasala
Opinion
Assisting solar power debate in Cabinet

Authors: Directors of Solar Village SDG CIC
www.solarvilllagesdg.org
I.M. Dharmadasa (Emeritus Professor), Nilmini Roelens (Solicitor) and Saroj Pathirana (Journalist)
The purpose of this article is to inform the Cabinet discussion on Solar Power proposed by the Ceylon Electricity Board (CEB)
Net metering and the Prosumer
The CEB has put forward a motion to the Sri Lankan Cabinet which proposes to reduce the unit price payable under the various net metering schemes to the “prosumer” (the owner of a solar panel system).
A prosumer is a blend of producer and consumer, referring to individuals who both create and consume. This is based on the notion that most producers of electricity through self-owned solar panels generate more than double their own needs as consumers. It thus enables the prosumer to connect to the national grid and receive money on a pay back scheme from the CEB for the excess electricity they produce.
What is this debate about?
Currently there are four schemes.
The Public Utilities Commission of Sri Lanka explains the various schemes involving roof -top solar solutions thus under a heading published in October 2023 – Rooftop Solar PV Connection Schemes. The two most noteworthy schemes are the Net plus and the Net plus plus schemes.
https://www.pucsl.gov.lk/rooftop-solar-pv-connection-schemes/
Through the NET Plus Plus Scheme CEB regards the prosumer as a mini power plant holder which maximises roof top generation well beyond the prosumer’s own needs making maximum use of extra roof space. This would work well for schools and companies with large buildings. CEB used to pay Rs. 37 per unit to the prosumer for up to 500kW. This unit price was available between 26 October 2022 to 1 July 2024. However, as of 1 July 2024 the unit price was reduced to Rs. 27.
We understand the new CEB proposal to the cabinet is to scrap this scheme altogether.
In relation to the Net Plus scheme which is the more accessible and popular scheme for ordinary householders the current CEB proposal is to reduce the unit price even further to Rs. 19 for solar power systems generating less than 20 kW, whilst for those generating between 20 – 100 kW the unit pay back will be Rs.17 and those generating between 100 – 500 kW will receive Rs.15 per unit.
The installation costs of a 5-kW solar panel is now around Rs 1.0 million. The cost of solar panels has in fact come down over the years and the units are recyclable. The lifespan of a solar unit is expected to be in the region of 22 to 25 years. There are now over 300 active solar companies in Sri Lanka. This is a rapidly growing sector with the prospect of generating employment for tens of thousands of young Sri Lankans for many years to come as technicians, administrators and entrepreneurs. The potential advantages for the economy are extensive Sri Lanka’s growth of the renewable energy sector using freely available sunshine available virtually all year-round given the geographical proximity to the equator
It is not just about reducing the electricity bills of the prosumer. This green energy solution would also mean we avoid the heavy annual cost of the import of fossil fuels into Sri Lanka which very seriously affects its balance of payments each year. The unwarranted need for environmentally damaging energy sources like coal, diesel and nuclear (with its inherent dangers and enormous costs), etc., will lead to a meaningless downward spiral of more debt, enhanced climate risk and pollution.
The intermittency argument
The argument of intermittency of renewables is a misguided premise. Some may argue that seasonal variations of renewables such as solar or hydro power may make them unreliable. This can very easily be remedied by investment in a smart grid. This can be done by upgrading the existing transformers and grid lines. A policy decision would be required at cabinet level to advise the CEB to reinvest any profits for this purpose.
Green Hydrogen is the future
Solar generated power can be harnessed to invest in Green Hydrogen solutions which could mean that rather being an importer of fossil fuels, that the rest of the world is turning away from, Sri Lanka becomes an exporter of green hydrogen to countries in the northern hemisphere where sunshine is scarcer.
Picture what it could do to the Sri Lankan economy if, rather than being dependent on imports of polluting and expensive fuel which can exacerbate the climate crisis, we transform our island into an eco-tourist paradise and become an exporter of clean green hydrogen.
Green hydrogen is created by splitting water molecules into its components of Hydrogen and Oxygen. The hydrogen gas can be compressed and stored for export. The minimum voltage required for splitting the water molecule is about 1.50 Volts DC and scaling up and commercialisation is happening throughout the world currently.
Rebranding Sri Lanka as a renewable energy island
To limit imports of fossil fuels for automobiles, a policy decision at governmental level could provide concessions for electric cars for solar roof owners and encourage the use of solar powered charging stations. The annual cost of imports of petrol and diesel would reduce overtime as Sri Lanka encourages clean and green electric cars.
Whilst the rest of the world is turning to renewable energy with alacrity, Sri Lanka ought not turn to fossil fuel imports in breach of its commitments to the international community.
In 2015 Sri Lanka signed up to the United Nations 2030 Agenda. Ahead of the Paris Summit Sri Lanka set out its climate action plan which the UN Framework Convention on Climate Change (UNFCCC) stated “Countries have agreed that there will be no back-tracking in these national climate plans, meaning that the level of ambition to reduce emissions will increase over time.”
(https://unfccc.int/news/sri-lanka-submits-its-climate-action-plan-ahead-of-2015-paris-agreement)
Sri Lanka has a real opportunity to rebrand itself as a renewable energy island. This means moving towards the commitments made at UNFCC – COP25, Sri Lanka Country Statement in Madrid in December 2019:
“Sri Lanka recognises the importance of the role of COP and highlights the need to take effective and definitive steps for finalising the follow up actions of the Paris Agreement.
The rise of the global mean temperature and the resulting changes have created adverse impacts on key sectors of Sri Lanka, such as agriculture, forestry, biodiversity, marine and fisheries, tourism and energy (hydro power) sectors, leading to disastrous effects on its people, ecosystems and economy. According to official statistics from 2008 to 2018, droughts, floods and landslides have affected over 15 million people, and losses and damages resulting from these calamities have been borne by Sri Lanka’s national budget… Sri Lanka is committed to inclusive and participatory climate actions to ensure that affirmative actions are taken to address the vulnerabilities of climate change.“https://unfccc.int/sites/default/files/resource/SRILANKA_cop25cmp15cma2_HLS_EN.pdf
Why is reduction of the unit price a very regressive, harmful measure?
The reduction will discourage the use of clean renewable energy in favour of higher imports and a move towards dangerous and expensive sources of energy.
The consequences of a reduction of unit price will thus be far reaching beyond the loss to the prosumer.
Lithium battery storage options mean that even when the sun stops shining at night or in the wet season the solar panel produced energy can continue to be used. It is very likely that current solar companies will need to diversify to survive and move towards lithium battery storage solutions and inverters so that year long, 24-hour access to energy is available without recourse to the national grid for their customers. As individuals and institutions go off grid CEB’s income will dwindle in the long run as the private sector takes over.
Recommendations to the cabinet
We make the following recommendations to the Government of Sri Lanka:
(i) At present we have a fragile grid, and the CEB should strenuously endeavour to minimise energy leakages and improve the grid by replacing weak transformers and grid lines. Such continuous improvements will enable us to move towards a “Smart Grid” enabling absorption of large amounts of intermittent renewable energies like wind and solar.
(ii) At present we have ~1500 MW of renewables installed, comparable to hydroelectricity. When solar power is plentiful during the daytime, hydro power can be reduced simply by controlling the water flow without any technical difficulties. This is one way of assuring energy storage while balancing the grid energy.
(iii) Another solution for this is pumped-water storage plants. It is important to follow through with such measures which have now been under discussion for some time.
(iv) The future energy carrier is green hydrogen (GH) produced by electrolysing water using both wind and solar. A global Green Hydrogen revolution is taking place, and GH can be used to run vehicles using fuel cell technology. Trains and buses are being run with GH technology in Europe. GH can also be converted into ammonia and methanol to produce fertilizer and be applied for other industrial uses. Sri Lanka must not be left behind.
(v) GH can be stored and burned whenever energy is needed, especially during nighttime. Only water vapour is produced during the burning of hydrogen without any air pollution. Sri Lanka already has the Sobhadanavi LNG plant which is almost ready to use. Since we must import LNG to run this power plant, we should be able to reduce the LNG import bill by half by mixing the natural gas (methane) with the locally produced GH. See here:
(vi) Local solar energy companies should install high quality solar energy systems and provide “after sale services” in accordance with their guarantees.
(vii) PV companies should also be encouraged to collaborate with local electronics departments to manufacture accessories like inverters and other components needed for these systems, creating new jobs, and reducing the total cost of the systems.
(viii) In addition to grid tied solar roofs, the PV companies should also market hot water systems and water pumping systems. As a country reliant mainly on agriculture, solar water pumping and drip irrigation systems, especially in the dry zone, provide a huge potential for increasing food production.
(ix) Battery capacities are improving, and costs are coming down. This can be encouraged pending replacing grid infrastructure.
(x) It is important to increase public awareness through government funded campaigns. The public should recognise the dangers of using imported and expensive fossil fuel and the importance of using renewables.
(xi) The public should also recognise the advantages of having a clean environment, health benefits and enhanced living conditions.
(xii) A community development project called “Solar Village” to empower needy communities, accelerate their sustainable development, reduce poverty and take climate action has been developed over the past two decades. Seven solar villages have been established and funding for three more solar villages have been obtained.
Solar Village SDG, a UK based community interest company has been established to encourage the use of renewables and to pilot programmes which will support sustainable development goals. This includes providing access to a quality education for all via smart rooms which will be set up alongside solar villages in rural schools. Such initiatives could be encouraged and supported.
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