News
Eran reveals SJB’s economic policies
Explaining the economic policy of the future SJB government, Eran Wickramaratne M.P. said that the SJB has already decided to allow the use of chemical fertiliser in order to promote export-oriented value-added commercial agriculture. He also said that the future SJB government will give priority to exports and the government will mediate directly to seek foreign market opportunities for small and medium scale entrepreneurs. Actions would also be taken to provide the required technology to SME sectors on a priority basis. Further, in order to give equal opportunity for women in obtaining employment in the private sector, a scheme will be introduced to provide financial relief for maternity leave to private sector employees.
Speaking at a media briefing held at the Opposition Leader’s Office in Colombo on the theme ‘The Right Path to the Economy’, Mr. Wickremaratne said: The crisis that started with the food shortages under this government which has no economic policy or plan has now spread to all sectors of the economy, leading to a collapse in exports and a large number of unemployment due to import restrictions on intermediary goods used for exports caused by a severe dollar shortage.
This government came in to office by spreading falsehoods, inciting racism and with distorted public opinion as it had no policies for governance. The Thera of Kelaniya Rajamaha Viharaya performed a drama of a Cobra emerging from Kelani river with a sacred relic, then had a play on arrest of ‘Ranaviruvan’, later staged a play on ‘MCC’ agreement and made another play about the Singapore Sri Lanka Free Trade Agreement. Now the entire country has realized that this government knows nothing about governance, economic and financial management.
Now they are making a soundtrack and using it to get the Attorney General to withdraw cases against politicians of the ruling family and their cronies. Now the latest drama is about chemical fertilizers, power cuts and gas explosions.
At a time when everything has turned upside down under this government, some ministers have started preaching to deceive the people saying that they should think positively. The government is now creating a dream of the future by misleading the people forgetting the reality.
The Governor of the Central Bank has told a foreign channel on January 24 that Sri Lanka has all the food stocks that it needs.
“But when you go to a shop, you are given only one packet of milk powder per customer. A notice to that effect has also been displayed. Don’t MPs and ministers see this reality?” Eran asked. The government advises people to be positive in the face of such market crisis. In order to do so, there must be clarity about the government’s policies and programmes.
The economy that exists in this country is where not even a bag of cement is freely available. A delegation from the packaging industry told us that there was no corrugated paper in the market. Shortage of intermediary goods to manufacture cartons for export of goods, not only disrupts exports but also leads to the collapse of local industries and unemployment. The food crisis in the country has spread one by one and affected the entire sectors but the government has no practical solution.
The current economic and financial crisis is unique to Sri Lanka. It is important to critically examine why it happened to Sri Lanka alone. In March 2020, Corona epidemic was reported. In the second quarter of 2020, the apparel industry fell by 42 percent. Construction fell by 30 percent. Tourism, which had a direct impact on Corona, fell by 64%. Consumption also declined during this time. Inflation has now risen sharply due to rising commodity prices due to short supply. The MP said the government, without realizing the depth, was deluded into believing that the issue could be resolved by printing money.
The Colombo Consumer Price Index for January 2022 is 14.2 % was up from 12.1%, in December 2021 and food inflation was 25%. Accordingly, Sri Lanka has been ranked as the 12th country in the world where inflation has risen rapidly. This government will soon make it the first country in the world.
The control and handling of the market without any policy or basis has led to increase in the prices of rice – samba, red rice and nadu rice, milk powder, dhal vegetables, dried chillies, potato onion gas etc. by about 30% to 150%. Before providing solutions to present crises the economic experts should make a thorough study on the issue to arrive at a decision whether these were due to issues in supply, production or demand side. The government’s ill-advised solution of money will definitely further aggravate the situation creating more hardships to the people. Therefore, Wickramaratne said that further increase in inflation cannot be prevented.
News
SJB flays PUCSL for shifting coal scandal losses to electricity consumers
Alleging that the Public Utilities Commission of Sri Lanka (PUCSL) has shifted the massive losses, caused by the coal scam, to the hapless public, Opposition and SJB Leader, Sajith Premadasa, has questioned the conduct of the regulator, noting that it is mandated to protect the interests of both the service provider and the consumers.
Premadasa alleged that the PUCSL ignored the representations made by the SJB on behalf of local industries.
Premadasa said that the PUCSL had authorised the latest 18% increase, in response to the request made by the recently established National System Operator (Pvt) Ltd (NSO), on behalf of the NPP government.
The PUCSL was established in terms of the Public Utilities Commission of Sri Lanka Act, No. 35 of 2002. Although the PUCSL was supposed to function as a multi-sector regulator for electricity, water services and petroleum industries, successive governments refrained from bringing water services and petroleum industries under its purview.
The Opposition leader alleged that the PUCSL did the bidding of the government.
Since January this year, PUCSL has increased electricity tariffs on three occasions. The latest came into operation on 11 May.
The PUCSL consists of Prof. K. P. L. Chandralal (Chairman), Engineer Piyal Henanayake (Deputy Chairman), Dr. M.C.S. Fernando, and Lilantha Samaranayake, PhD.
Premadasa said that instead of taking tangible measures to recover the unbearable losses caused by the coal scam, the government burdened the entire country through the PUCSL.
“Don’t forget that the government is shielding its henchmen responsible for the coal scam at the expense of the country,” MP Premadasa said, pointing out that there couldn’t have been any dispute over their culpability, after the National Audit Office (NAO) found fault with the Energy Ministry for granting the tender for the supply of coal for the 2025/2026 season to a company not qualified even to participate in the tender process.
The SJB leader declared that the resignation of Energy Minister, Kumara Jayakody, and its Secretary, Prof. Udayanga Hemapala, in the immediate aftermath of Parliament defeating a no-faith motion against the Minister was meant to protect the ruling party.
The PUCSL has stated that the NSO received Rs 15 bn from the government to grant relief to 95% of the consumers. “How could the PUCSL justify unbearable electricity tariff increases for the remaining 5% of the consumers, knowing very well that it will destabilise key sectors in the economy?” a power sector expert said.
By Shamindra Ferdinando
News
Rains bring relief to debt-ridden CEB as reservoirs fill; one dead, 62 families affected by adverse weather
The widespread torrential rains currently experienced countrywide are expected to provide significant financial relief to the debt-ridden Ceylon Electricity Board (CEB) by sharply increasing hydroelectric power generation and reducing dependence on costly thermal and coal-powered electricity generation, power sector officials said yesterday.
Senior engineers of the CEB told The Island the rapid rise in water levels in major catchment areas and reservoirs had already strengthened hydropower generation capacity across the country.
Officials of the Irrigation Department confirmed that 33 reservoirs are presently spilling following continuous heavy rainfall over several parts of the island.
Among the major reservoirs spilling are Rajanganaya, Lunugamwehera, Weheragala, Deduru Oya, Nalanda and Wemedilla reservoirs, while several spill gates have been opened to release excess water due to heavy inflows into the catchment systems.
An Irrigation Department engineer said catchment areas linked to the Mahaweli, Kala Oya and southern river basins had received exceptionally heavy rainfall over the past several days.
“The inflows are extremely high. Reservoir capacities are increasing rapidly and this is highly beneficial for irrigation, water supply and hydroelectric generation,” the official said.
CEB engineers explained that the increase in reservoir storage levels would enable the Board to maximise hydroelectricity generation from major hydropower stations linked to the Mahaweli and Laxapana systems.
A senior CEB engineer said hydropower remained the cheapest electricity source available to Sri Lanka.
“Hydro generation costs are minimal compared to thermal generation. Once reservoirs fill up, we can considerably reduce expensive oil-based thermal generation,” the engineer said.
According to power sector estimates, hydroelectricity generation costs remain below Rs. 5 per unit, whereas coal-fired electricity generation costs range between approximately Rs. 18 and Rs. 25 per unit depending on international coal prices and exchange rate fluctuations.
Diesel and furnace oil-powered thermal generation are significantly more expensive, costing between Rs. 40 and Rs. 70 per unit.
CEB officials said the prevailing rainy conditions were therefore producing enormous savings for the financially-strained utility.
Daily electricity demand currently fluctuates between 45 million and 50 million units. One unit equal 1 kWh. One million units 1 GWh.
Energy sector estimates indicate that if hydropower generation replaces between 10 million and 15 million thermal-generated units daily, the CEB could save between Rs. 350 million and Rs. 900 million per day depending on the displaced fuel source.
Even replacing coal-powered generation alone could save between Rs. 150 million and Rs. 300 million daily.
“The present rains have arrived at a critical time for the CEB. Higher hydro generation means lower fuel imports, reduced thermal dispatch and major savings for the utility,” another senior engineer said.
Meanwhile, the prevailing adverse weather has also caused fatalities and damage in several districts.
The Disaster Management Centre (DMC) said one person had died while 62 families in four districts had been affected by the severe weather conditions.
The fatality was reported from the Koralai Pattu South Divisional Secretariat Division in the Batticaloa District.
According to the latest DMC situation report issued at 10.00 p.m., 17 Divisional Secretariat divisions across four districts have been affected by the disaster situation caused by the severe weather.
Some 203 persons belonging to 62 families have been affected so far, while 17 people are currently being accommodated at safe shelters.
The DMC further stated that 39 houses had been damaged due to the prevailing adverse weather conditions.
Meanwhile, the Department of Meteorology issued a red warning for heavy rains in several parts of the country.
The Met. Department said the prevailing showery conditions were expected to continue further due to the low-pressure area in the vicinity of Sri Lanka.
Very heavy showers exceeding 150 mm are likely at some places in the Western, Sabaragamuwa, Central and Northwestern provinces and in the Galle and Matara districts.
Heavy showers of about 100 mm are also likely at some places elsewhere across the island.
The Disaster Management Centre yesterday urged the public to take adequate precautions to minimise damages caused by heavy rain, strong winds and lightning during thundershowers.
By Ifham Nizam
News
President orders acceleration of Ditwah relief programmes
President Anura Kumara Dissanayake directed officials to fast-track the completion of the resettlement process for people in the Kandy District who lost their homes due to the recent Ditwah disaster. Speaking at a Special District Coordinating Committee meeting held at the Kandy District Secretariat on the 12th, the President reviewed the progress of land acquisition for resettlement at the Divisional Secretariat level.
The President emphasised the urgent need to resolve existing administrative hurdles and ensure that affected families are provided with permanent housing solutions without further delay.
During the session, the President individually consulted Divisional Secretaries on the progress of compensation for the 12,169 houses reported as partially damaged within the district. According to official data, while 4,488 families are currently eligible, only 3,038 have received compensation thus far. The President also highlighted the status of 1,583 high-risk houses requiring full resettlement and thousands of others awaiting NBRI technical reports. He instructed officials to expedite the remaining payments and clear the backlog of inspections to ensure all victims receive their due relief.
Addressing the long-term safety of the community, President Dissanayake noted that it was the government’s primary responsibility to prevent residents from returning to identified high-risk zones. The discussion focused on identifying new lands for relocation, with special attention paid to the plantation community living on private estates. Plans were discussed to reclaim government lands currently managed by private companies to facilitate these housing projects.
Additionally, the President addressed the construction of retaining walls for houses where land stabilisation is necessary and promised a solution within the coming week regarding the fluctuating prices of construction materials and compensation for business losses.
The high-level meeting was attended by a distinguished gathering, including Minister of Agriculture K.D. Lalkantha, Central Province Governor Professor Sarath Abeykoon, and Deputy Ministers Hansaka Wijemuni and Prasanna Gunasena. Several Members of Parliament, including Jagath Manuwarna and Riaz Farouk, also participated alongside the Mayor of Kandy, the District Secretary, and various heads of state departments and security forces. The collective presence of these officials underscored the government’s commitment to a coordinated and swift recovery effort for the Kandy District.
By S.K. Samaranayake
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