News

‘Govt must hide its head in shame for allowing the crisis to deepen’

Published

3 years ago

2023/01/8

by Prof.TISSA VITARANA

Looking back at 2022, Sri Lanka cannot look forward to 2023, with any sense of hope. The economic, social and political crisis deepens without any clear plan by the Government to emerge from the crisis. Inflation is increasing with the Government, which is short of money due to its reluctance to tax the rich, resorting to massive printing of currency notes. This rise in the cost of living is fed by the support given to the private traders and big rice mill owners to fleece the cultivator and the producer who are in perpetual debt to them on the one hand and the consumer on the other. Survey data indicates that more than 65% of families live below the poverty line and that the malnutrition rate has approached 20%. Thus one out of five children below five years of age is suffering from severe under nutrition, and are both physically stunted and thin, but also mentally defective.

The future generation will be badly affected. Thus people with fixed or diminishing incomes faced with the high cost of living are suffering from hunger. In many families the parents have one meal a day and the children two, but the meals lack protein which is essential for development as well as vitamins and key minerals. Rampant bribery and corruption in the Administrative service has added to the suffering of the average person in his daily life; it is no longer a Public Service, it only serves the rich, the crooks and those with influence Instead of Government action to stop this exploitation by the middleman, like strengthening the Cooperative Movement among producers and consumers, reviving the Marketing and Food Control Departments, the Government supports the exploiter, rather than the exploited.

Ranil Wickremasinghe (RW) as Finance Minister tries to control the inflation by increasing the bank interest rate to a massive 30%. This not only deters the startup of new companies but also hits the established ones. The outcome of these policies is that the economy will continue to shrink, with more closures and job losses in the private sector together with the near complete stop to infrastructure development in the public sector. RW claimed that he would revive the economy through the private sector but his policies are undermining the private sector. The lack of jobs especially among the youth is leading to their leaving the country in huge numbers. The brain drain among professionals like doctors due to wrong tax policies is also increasing in an alarming manner. The youth that remain are driven to illicit activities like drug addiction and trafficking, and prostitution. Criminal activities like robberies, petty thefts, abductions, rape, assaults and murders are increasing so that people fear to venture out, especially after dark. Conflicts within families and between families and among criminal gangs are increasing. In society as a whole the collective cooperative spirit is being replaced by neoliberal individualism. Social cohesion is being lost. There is a complete breakdown of law and order.

The policy of taking more and more foreign loans is being persisted with. But even the International Monetary Fund (IMF) has yet to come forward with any part of its promised 3.9 billion US dollar (USD) aid package, despite several months of negotiations. Even if we get the IMF loan it will be too little too late. The terms demanded, if fully implemented, will reverse all the gains of the post-1956 era towards building a national economy as a sovereign independent state and emerge from our colonial past. The IMF demands would lead to de-nationalization and privatization of state-owned enterprises, but worst of all to the ownership passing over even to foreign hands. Sri Lanka would become a neo-colony subject to direct Imperialist exploitation once again.

The Government expects that by bowing down to the IMF terms Sri Lanka would be able to access more multilateral and bilateral loans and emerge from the dollar crisis and restore the ability to import using letters of credit from local banks. But getting deeper into foreign debt, which is the main cause of our dollar shortage and crisis, will only make matters worse. In 2021 we had to pay USD seven billion to service our 52 billion USD foreign debt, and Sri Lanka will be drawn further into the foreign debt trap. The fact that nearly 50% of the foreign loans are International Sovereign Bonds (which are short term high interest private loans) which are difficult to re-negotiate to delay payment makes matters worse. To further aggravate the situation the ban on the import of half of over 1500 non-essential items by this Government has been lifted recently. The dollar shortage will get worse and the fuel and gas queues will return and the shortage and high price of medicines and essential food items will also continue to rise.

The wrong policies of the present Government should be radically changed. There must be “a system change”. The way to increase productivity and national income is not by going back to the purely profit oriented privatization policy, but to move with the times and turn to a solidarity economy, as in Scandinavia and some provinces in Germany. In our agricultural economy the biggest export income earner is tea. But the private companies say they are running at a loss and cannot pay the employees a living wage. After 5 years of struggle the employees won a wage increase, the total allowance was raised to Rs.1000/day. But the employees are now being forced to increase their green leaf quota from 18 kilos per day to an impossible 24 kilos.

Even if they provide 20 or even 22 kilos, their pay is cut by Rs 50 per Kg, so that they are back to the status quo ante. We must learn from Kerala, India, where the solidarity economy is now in action. The ownership has been given to the employees by the Left regime, and as owners with shares in the company, in addition to their salary, they have increased the output tremendously and produce a large profit, which also benefits the society.

The present Government should also promote value added industry based on local raw material. I am happy to mention that as Minister of Science and Technology I developed the nanotechnology centre, SLNTEC, which can do this. In addition I was happy to learn that the Vidatha Centres for the development of SMEs in every Division have now topped the mark of thousand entrepreneurs that have successfully exported their products. Thus the answer is to make Sri Lanka an industrialized exporter of finished products.

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Special Coordination Committee meeting for Badulla District chaired by the President

Published

6 hours ago

2026/05/14

Priyan

A Special Coordination Committee meeting for the Badulla District was held on Wednesday (13) afternoon at the Badulla District Secretariat under the patronage of President Anura Kumara Dissanayake to review the progress of measures taken to restore normalcy to the lives of people affected by the cyclone “Ditwah” and to develop infrastructure in the district.

As a result of the disaster situation, 90,667 individuals belonging to 26,517 families in the Badulla District were affected. A total of 77 estate houses and 507 rural houses suffered complete damage. In addition, 1,376 estate houses and 1,474 rural houses have been identified as high-risk dwellings. Accordingly, the total number of families that need to be resettled in the Badulla District is 3,434. During the meeting, the President inquired separately at divisional secretariat level about the resettlement process and the issues that had arisen.

Special attention was also given to the speedy release of state lands currently occupied by private companies, which have been proposed for resettlement purposes. The President instructed officials to commence housing construction work immediately after reaching agreement among the relevant institutions regarding the release of these lands.

The President further emphasized the need to expedite the resettlement process and stated that authorities should move beyond reports and plans and ensure that people who lost their homes gain confidence and hope in owning a new house.

The President also instructed that people who are hesitant about relocating to different lands should be given time until June 15 to make a decision.

The President separately reviewed the progress of compensation payments to affected people in the Badulla District, including compensation for loss of livelihoods, compensation for small and medium-scale business establishments, housing rental assistance and compensation for loss of life.

Attention was also drawn to the process of removing sand and rocks deposited on paddy fields and agricultural lands due to the disaster. It was decided to provide an allowance of Rs. 25,000 per acre for this purpose and to implement the programme with the support of farmer organizations.

Special focus was also given to the development of roads in the Badulla District damaged by the disaster. The President instructed that work on all 21 affected roads under the Road Development Authority be completed within this year.

The President also inquired about the programme being carried out for provincial road development and the required allocations and instructed officials to prepare and submit estimates for the necessary funding for all those roads.

The President further instructed officials not to consider financial constraints as an obstacle in restoring normal life for those affected by the disaster. President Dissanayake stated that the district should recover from the destruction caused by the cyclone within this year and be prepared to restart the Badulla District development programme from next year onward.

Also attending the meeting were Badulla District Coordination Committee Chairman and Minister of Plantation and Community Infrastructure, Samantha Vidyarathna; Co-Chairman and Uva Province Governor, Attorney-at-Law Kapila Jayasekara; Deputy Minister of Tourism, Ruwan Ranasinghe; Deputy Minister of Youth Affairs, Dinidu Saman Hennayake; Members of Parliament Kitnan Selvaraj and Ravindra Bandara; the Mayors of Badulla and Bandarawela Municipal Councils; Chairpersons of Local Councils; public representatives; the Chief Secretary of the Uva Province; the District Secretary; government officials of the Badulla District; Heads of relevant Departments; and representatives of the security forces.

(PMD)

News

SJB flays PUCSL for shifting coal scandal losses to electricity consumers

Published

7 hours ago

2026/05/14

Sahan Weerasooriya

Sajith Premadasa

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

Published

7 hours ago

2026/05/14

Sahan Weerasooriya

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