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Japan warns of threat of global downturn

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Japanese Ambassador in Colombo Akira Sugiyama recently said that although Sri Lanka had been successful in combating Covid-19 pandemic, the continuing global crisis caused serious difficulty to the Sri Lankan economy, especially in export and tourism sectors.

Ambassador Sugiyama said so at the 41st Annual General Meeting of the Sri Lanka-Japan Business Council held recently at the JAIC Hilton where Merrick Gooneratne received the appointment as President of the Sri Lanka–Japan Business Council

The Ambassador said: First of all, on behalf of the Government of Japan, I would like to express our solidarity with the people and the Government of Sri Lanka in combatting COVID-19, while commending the strong leadership of the Government and the business leaders of Sri Lanka in tackling successfully the unprecedented challenges posed by COVID-19. Japan has provided USD9.6M grant aid to help Sri Lanka’s fight against COVID-19, including procurement of essential medical equipment like MRI system and CT scanners and improvement of hospital facilities.

The COVID-19 has had a serious negative impact on the global economy. Both Sri Lanka and Japan, like other countries in the world, are tackling the challenge of resuming and rebuilding economic activities while controlling the spread of the virus.

“Sri Lanka effectively implemented the curfew to contain the spread of the virus, while ensuring the people’s access to basic needs, including food and medicine, and without disrupting essential services in both public and private sectors. Now, the virus infection in Sri Lanka is successfully under control with zero community transmission. This is a commendable achievement. The global pandemic, however, caused serious difficulty to the Sri Lankan economy, especially in export sector and tourism. The Government of Sri Lanka announced several financial and monetary measures to mitigate this economic difficulty, and, most assuredly, they could lead to significant positive impacts on the Sri Lankan economy.

“Japan’s economy is in severe difficulty. The Government of Japan declared a State of Emergency on April 7th to request that the people and business community limit their activities to the minimum, although on a voluntary basis, to contain the COVID-19. Although the state of emergency was lifted on May 25 after pulling off the crisis, we still see new cases of infection every day. As disruption of social and economic activities in Japan and abroad takes a heavy toll on our economy. Japan’s economy contracted by 7.9 % in the second quarter of this year compared with the first quarter, which is equivalent to 28.1 % decline on an annualized basis. Japan is now struggling to strike an appropriate balance between reviving the economy and containing the virus spread. New Prime Minister Yoshihide Suga stressed in his first press conference, the most urgent agenda for the new Government is of course how we will get our economy back on track.

“Let me briefly discuss how consumer habits have changed in Japan after the COVID-19 pandemic, although I have to say that this is my layman’s view.

“As people start to work from home and spend more time at home because of the pandemic, their lifestyle and way of consumption have significantly changed. First, the COVID-19 has brought a considerable shift in the consumer’s style of shopping – from store shopping to on-line shopping. Because of stay-at-home requirement, consumers who were not familiar with online services such as restaurant delivery applications are now experimenting with these new devices. This has stimulated the uptake of digital commerce among more Japanese. Second, we are seeing an increasing demand for the goods and services which make working-from-home easy and efficient and staying-at-home more comfortable and enjoyable, including electronic appliances and online video services. In Japan, such consumption trend is called “nesting consumption”, which means that, like nesting birds, people stay and work at home and buy things online to keep their home tidy and comfortable.

“Next, products essential for the health and wellbeing of people such as masks and alcohol disinfectants are high in demand among consumers since people are now more conscious about hygiene and good health. In this connection, it should be noted that the COVID-19 has caused serious disruptions to global supply chains, resulting in shortages of various products, including such hygiene products. We keenly feel the need to diversify production bases of those products.

“Staying at home and health concerns are also changing payment methods of Japanese people. As some of you may know, Japanese people still have a preference for cash payment in daily lives, but prevalence of online shopping and hygiene concerns about touching money make people go for credit cards or prepaid cards more frequently.

“Since people stay home and do not go out, they do not pay for travel and hospitality services. As in Sri Lanka, in Japan tourism and hospitality business have lost business substantially because of the COVID-19. Since the tourism industry in Japan is increasingly dependent on inbound tourists, the entry ban of foreign tourists has been giving a serious negative impact on the tourism industry, especially local (outside Tokyo) businesses. To address this issue by promoting domestic travel, the Government of Japan has embarked on “Go to Travel Campaign” which gives domestic travelers a discount on travel costs, including hotel accommodations, if hotels or restaurants they use take strict health precautionary measures against the COVID-19.

“Of course, business people like you have much better ideas about these new trends. Having said that, I think that some of these changes will be here to stay even after the COVID-19 threat passes and could even open up new business opportunities.

With the lessons learnt from this pandemic, our two countries should come up with proper strategic moves to convert the global pandemic challenge into opportunities and I hope this would turn a new leaf in Japan-Sri Lanka business relations.”



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Sri Lanka faces new grid challenge as rooftop solar surges: former CEB GM

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BY IfhAm NIzAm

Sri Lanka could soon face a new electricity-grid challenge—not from too little power, but from having too much solar generation in the wrong places and at the wrong times, a former Ceylon Electricity Board (CEB) General Manager told The Island.

The former CEB GM who insisted not to be named warned that the rapid growth of rooftop and utility-scale solar could place increasing pressure on CEB and LECO distribution feeders, substations and the national grid unless transmission, storage and grid-management systems are upgraded at the same pace.

“The issue is no longer simply how much solar we can install. The question is whether the grid can absorb those electrons when and where they are produced,” he told The Island.

He said Sri Lanka should learn from China and India, where the enormous expansion of renewable generation is now forcing policymakers to focus increasingly on storage, transmission capacity, intelligent dispatch and grid flexibility.

“China has already exceeded 1.28 TW of installed solar, while India’s grid-connected installed solar capacity stood at around 162.15 GW as of June 30, 2026. The difficult question now is what you actually do with so much solar when everyone is generating at almost the same time,” he said.

For Sri Lanka, he said, the warning is particularly relevant to the distribution network.

A feeder carrying a high concentration of rooftop solar can, during periods of strong sunshine and low local demand, move from the traditional one-way flow of electricity towards consumers to reverse power flow back towards the transformer and upstream network.

“That means the feeder is no longer simply a one-way road for electricity. At certain times of the day, it becomes a two-way road,” he said.

This can create voltage-rise, protection-coordination and transformer-loading issues and could eventually limit the amount of additional rooftop solar that can safely be connected to particular feeders.

“What matters is where those megawatts are connected,” he told The Island.

He said Sri Lanka therefore needs to begin looking at solar hosting capacity feeder by feeder and substation by substation, rather than treating the national grid as having unlimited capacity to absorb new distributed generation.

The problem is compounded by the evening transition, when solar generation falls rapidly just as electricity demand can increase.

“If the system has a lot of solar in the middle of the day and then loses that generation rapidly in the evening, something else has to respond. That is a flexibility problem,” he said.

This is where battery energy storage systems (BESS) are likely to become increasingly important—but the former CEB chief cautioned against allowing cheap imported battery hardware to drive the market.

“Sri Lanka could soon have huge BESS demand, very cheap battery hardware and everyone suddenly becoming a BESS pundit. What could possibly go wrong?” he said.

He cited fire safety, degradation, poor integration, weak energy-management systems, questionable warranties, incorrect sizing, inappropriate grid locations and poor thermal management as major risks.

“A system can look fantastic in Excel on Day One but perform very differently in Year Two,” he told The Island.

He said the future BESS market would therefore be determined less by who could supply the cheapest container and more by who understood the complete system.

“The future BESS business will not be about who can assemble the cheapest container. It will be about who understands battery, PCS, EMS, grid, safety, degradation and dispatch economics as one system,” he said.

For Sri Lanka, storage should also be considered as a distribution-grid asset, rather than solely as a large transmission-level installation.

Strategically located batteries could absorb excess rooftop solar on constrained feeders during the middle of the day and release electricity later when local demand rises, potentially reducing network congestion and improving the value of distributed generation.

“The question is not simply, ‘How many megawatt-hours of batteries do we need?’ The question is, ‘Where does the battery create the greatest system value?’” he said.

He said China’s and India’s experience could broadly be viewed as three stages: Phase One—build solar and wind; Phase Two—build storage; and Phase Three—redesign the grid around renewables.

Sri Lanka, he said, should learn from that progression before renewable penetration makes grid problems significantly more expensive to solve.

“Installing another large amount of solar is one thing. Absorbing those electrons when the sun is shining everywhere at once is quite another,” he said.

“Solar taught us how to generate cheap electrons. BESS and the grid will decide whether those cheap electrons are actually useful when they are needed.”

“That is perhaps the biggest lesson Sri Lanka should take from China and India’s energy transition right now,” he added.

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SC rules President Sirisena’s pardon of Gnanasara thera invalid

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The Supreme Court yesterday ruled that former President Maithripala Sirisena’s decision to grant a presidential pardon to Bodu Bala Sena (BBS) General Secretary Ven. Galagoda Atte Gnanasara Thera was arbitrary and invalid in law.

A three-judge bench headed by Justice Janak de Silva delivered the judgment in response to fundamental rights petitions filed by the Centre for Policy Alternatives (CPA) and Sandhya Ekneligoda, challenging the former President’s decision to release the monk from prison.

Gnanasara Thera had been sentenced by the Court of Appeal in August 2018 to 19 years’ rigorous imprisonment, to run concurrently as six years, after being found guilty of contempt of court over his conduct inside the Homagama Magistrate’s Court on January 25, 2016, during proceedings related to the disappearance of Prageeth Ekneligoda.

The Supreme Court subsequently upheld the Court of Appeal’s finding of guilt on October 5, 2018.

However, Gnanasara Thera was released from Welikada Prison on May 23, 2019, after the then President Sirisena granted him a presidential pardon.

The petitioners challenged the legality of the pardon, prompting the Supreme Court to examine the exercise of the President’s constitutional power of clemency.

The Court’s ruling yesterday effectively nullifies the pardon granted to the BBS leader.

Viran Corea, PC, with Luwie Ganeshathasan and Khyati Wikramanayake appeared for the CPA, while Counsel Asthika Devendra, with Pulasthi Hewamanne, instructed by Manjula Balasuriya, appeared for Sandhya Ekneligoda.Counsel Thishya Weragoda, with Sanjaya Marambe and Iresh Senevirathne, appeared for Gnanasara Thera. Faiszer Musthapha, PC, with Pulasthi Rupesinghe, appeared for former President Sirisena.

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Duminda, another indicted in gold-plated T-56 case

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Duminda Dissanayake

The Colombo High Court yesterday served indictments on former Minister Duminda Dissanayake and a woman in connection with the discovery of a gold-plated T-56 assault rifle at the Havelock City apartment complex in Wellawatte.

Following the indictments, the High Court Judge ordered that both accused be released on bail.

Court records indicate that indictments had also been filed against Dissanayake and the same co-accused on September 9, after which they were granted bail.

The case relates to the discovery of the gold-plated firearm at the apartment complex in May 2025.

Two women, aged 40 and 68, were initially arrested in connection with the possession of the weapon, before the investigation was handed over to the Terrorism Investigation Division (TID).

Subsequent investigations by the TID led to Dissanayake being arrested and produced before court. However, he was later released after the Attorney General’s Department informed court that there was insufficient evidence at the time to proceed with legal action against him.

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