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Minister’s promise to make Lanka’s agricultural sector export-oriented

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By Chandre Dharmawardana
chandre.dharma@yahoo.ca

According to a recent news report (The Island 23rd June 2023), Minister Mahinda Amaraweera has claimed that the “agricultural sector to be transformed into an export-oriented economy”! This is a surprising statement since the plantation sector, established by the British, has been from the start (and even now) an export-oriented economy. It is no secret that this traditional but well-established export earning sector is in trouble due to successive politically and ideologically motivated moves that began with the nationalisation of the sector, de-nationalisation of the sector, “greening” of the sector to satisfy eco-extremists who wanted herbicides like glyphosate banned, and then banned fertilisers and all agrochemicals (see: ) banned from the country.

What the country needs at this moment is cutting down imports by achieving self sufficiency in energy and food needs locally, and NOT prioritising export-oriented agriculture.

The minister is making the usual mistake that the country must “earn foreign exchange” by increasing its export earnings. This however is NOT as simple as it looks. Any such development of an export-oriented market requires the investment of a large amount of initial capital most of which would be in foreign exchange, and competing with established vendors for market acceptance. The export-oriented plantation industry set up by the British involved automatic market penetration, and also a very large investment in foreign capital, road and rail construction, and the best industrial know-how of that era as the British Islands were the then leaders of the industrial revolution. Today that valuable rail system has deteriorated due to poor maintenance. An export-oriented market needs the efficient support of all that valuable infra-structure that countries like China have built up.

The official statement says, “Minister Amaraweera asserted that comprehensive strategies have been formulated to meet the country’s domestic consumption demands, ensuring the success of all agricultural products”. This is a blanket statement covering everything and saying nothing, drawn up by ministry henchmen whose comprehensive strategy is nothing but spinning words.

SAVING foreign exchange that is used up in importing food stuffs (e.g., sugar) that can be easily produced in Sri Lanka itself should be much easier than earning foreign exchange. An even more important source of saving foreign exchange is in developing LOCAL sources of energy to replace fossil fuels. Fossil fuels (e.g., diesel) can be replaced by non-edible vegetable oils that can be extracted from, e.g., castor, an easily grown weed-like plant that yields seeds within a year. The castor oil suitably transformed (to reduce the viscosity), or simply mixed with ethanol can be used in combustion engines. Ethanol can be produced by fermentation technology, well-known to every Kassippu brewer. The burning of such oils is much cleaner than burning fossil fuels as the molecules of these vegetable fuels contain more oxygen (See ). It must not be forgotten that Diesel himself ran his engines using vegetable oils. Vegetable oils were replaced by fossil fuel only after 1923 by which time the West was literally stealing oil for free from various conquered lands.

Furthermore, when a major war is raging (as is the case right now, in Ukraine) saving foreign exchange by establishing energy and food security is more likely to be successful than by promoting agricultural products and soft consumer exports (like garments). These are adversely affected during a war when the available money is channeled to military raw materials. So, Bangladesh that was doing well just recently is now in big trouble with its soft exports. However, given that there has always been a war (Afghan-US war lasted 11 years till just recently, and so on), small countries can be strategic in developing appropriate exports keeping strategic materials in mind.

But the minister has been wrongly advised to push for export-oriented agriculture while even the domestic needs for sugar and edible oils are not met. It is unlikely that the Minster had considered strategic raw materials that become valuable during war time. This seems to have escaped even the author Prabhat Patnaik in his essay entitled “Pitfalls of export-oriented growth” (see ).

During World War II, then political leaders like D. S. Senanayake and Oliver Goonetileke realised the importance of Rubber and made a lot of money, and continued to make more money during the Korean war. At that time Government leaders had the support of an excellent and honest administrative staff, as seen by the ease and efficiency of the Gal Oya project that was done within budget, without incurring foreign debt or foreign aid, and well on time. The political leaders accepted the advice of the top civil servants who in turn worked with British or US experts. At that time a significant local scientific community did not exist. Today, there is a significant local scientific community; but they seemed to be sidelined by the government, not only in archaeology (as has happened in regard to the Kurundi temple in Mooladoova, now known as Mullaitive), but also in agriculture, energy, and engineering.

This healthy balance of payments that existed after the Korean war vanished rapidly after 1956 when Western investors pulled out, fearing SWRD’s cabinet that included Phillip Gunawardena and other avowed Marxists who were threatening nationalisation of privately held foreign and local assets.

Natural rubber, activated charcoal, graphite, titanium, plumbago, kaolin, and many other things that Sri Lanka has can be exploited at a much higher price during a war. Furthermore, aviation fuel can be produced from various vegetable oils. The Ukrainian war has all the signs of a war that will last several years and more. Enterprising businessmen should be given government support to strategically position their exports to the war market.

Many writers including the present author have written about these topics in the past. However, pseudoscientists posing as environmental gurus had joined with opponents of the “green revolution” to mislead the public with false claims of toxins like arsenic and cadmium being in food, or “exponential increases in non-communicable diseases” that had been allegedly caused by the use of agrochemicals and fertilisers. Advocates of “organic farming” or “traditional farming,” etc., had joined with these false environmentalists and successfully sidelined modern agricultural science. Unproven microbial fertilisers have been added to this witches’ brew to further exploit the hapless farmer. It is not clear if the Minister’s advisors are able to shed the myths that have taken hold of Sri Lanka’s agriculture and give him proper advice.

Those who claim to communicate with divine beings like God Natha had dictated agricultural policy and even the health policy of Sri Lanka. Very often, the naïve beliefs of some of the political leaders were in line with the views of these traditionalists who hold a nostalgic and romantic view of the past anchored in occult beliefs. Some of them had called for the elimination of the tea plantations claiming them to have only dwindling value.

Unfortunately, they are wrong. The minister’s belief that new efforts in agriculture must be made “export oriented” is to put the cart before the horse. What he should do to begin with is to support and strengthen the EXISTING export-oriented plantation sector, while also giving priority to developing an agricultural sector that will provide local self sufficiency in energy and food. That will rapidly SAVE large amounts of foreign exchange for a modest outlay mainly in local funds.



Opinion

Four generations

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Surasena was a scraggy boy with a runny nose, most of the time. He came to school sometimes, when he was well enough. Coughs and colds were a part of him. The entire school had an enrolment of less than 100; attendance varied from about 80 to about 100. Enrolment fell as students dropped out as they grew older: in grade V, there were usually 6 or 7 students, mostly boys. Most students were in Kindergarten, the Lower and the Upper. There were six teachers, one female, who was the principal’s wife, and both came from about 75 km away. They lived in the principal’s quarters with no other suitable house they could rent in the village. There was one English teacher, a man who cycled daily from a considerable distance. He was remarkably regular. He was the class teacher for Grade III and taught English in grades III, IV and V. He had had no special training in teaching English, or any other language and his final year students could hardly write the English alphabet without error. The parents of the children were mostly illiterate and hardly came to school after they had brought their child for admission. Surasena’s illiterate parents saw no function they could serve in the school. Teachers did the teaching.

Although Surasena was irregular in attendance, he picked up what was taught in class without any effort. When the end-of-term tests came, if he were present, he always came first in class. One teacher noticed this and spoke to the principal. The teacher thought that the boy was bright enough to win a scholarship if the gaps in his knowledge of arithmetic could be filled. Because the boy had come to school only when he was well, there were large gaps in his competence, especially in arithmetic. The young teacher took up the challenge, and when the results came, the boy had done well. So began a venture, which few had set out on then. One scholarship after another carried him to the highest centre of learning in his discipline, where he earned the highest degree any university could award.

Then a career: compromising among several objectives and laying aside many objections, Surasena decided to work for the world’s primary intergovernmental organisation. In doing so, he chose to live in the richest city in the world. Rich cities offer citizens many and varied services unavailable in less sophisticated habitats: theatres, concert halls, public libraries, high quality schools, universities, good sanitation and sophisticated architecture. Surasena chose to send their children to a unique school where both students and teachers came from many parts of the world. When the children prepared to go to university, each of them found her/himself in the first percentile of intellectual ability. Each chose to attend the highest quality colleges and universities. Their first jobs were with the Securities and Exchange Commission and the Federal Reserve System, both the highest-level regulatory agencies in that country. They eventually changed their careers and residences. One took up to law in New York City and the other a professorship in a state university.

Two young men in the fourth generation have completed secondary school and are in universities studying engineering.

An illiterate family goes to university. A family that lived in a coconut leaf thatched hut in a remote village lives in good housing in choice parts of cities, large and small. A boy who had only rice ration books in his home dispersed his collection of nearly one thousand books to several universities. A man who had never seen a play on a stage goes to Broadway and Carnegie Hall regularly. A young man in the fourth generation plays the saxophone at the Lincoln Centre. A family in the first generation that had not ventured beyond its native district, in the second generation, travels the world over. With different destinations and varied byways, these paths have been traversed by thousands of individuals and families in our society. A different and much larger cohort of our labour force, young, healthy and literate, has been pushed out of our economy.

I have used a fictional name to avoid embarrassing individuals. The rest of the narrative is factual. These sequences are repeated many thousands of times in this country, a highly mobile society. Neither poverty nor social position or habitat in town nor country bars children of ability from going where they wish. (One last habitat is systematically denied access to the high roads. One expects these roads to open literally and metaphorically, in short order.) We have had several employees in our household who used their earnings to pay for their children’s education at university. A few weeks back, one of those children graduated from a prestigious medical faculty in the country. A child in another family is in university studying mathematics. I reckon that is not an uncommon or infrequent occurrence.

It is one thing to move up the education ladder and another to find mobility within the economy. The space at the top is created in the economy and not in schools. It is an easy and common confusion to think that young men and women cannot find employment because they studied the wrong subjects at school or university. No matter what they learnt at school and university, they will be unemployed so long as there is no demand for labour. And the demand for labour is a function of the structure and the level of activity in the economy, not of the education system. Well into the second half of the 19th century, the founders of Dartmouth College declared, ‘though our great objective was to erect a seminary for educating ministers of the gospel, yet we hope that it will be a means of raising up men that will be useful in other learned professions- ornaments of the state as well as the church.’ And the United States was rushing to be the largest economy in the world. From 1929 to about 1936, there was high unemployment in most capitalist economies because economic activity fell disastrously and not because there was something suddenly wrong with education in those countries. Millions of rural folk in China and India, with no special education or training, marched to factories, when entrepreneurs opened workplaces for them. In both instances, the cause of unemployment is a lack of demand for labour. In China and India, demand arose when enterprises, both national and international, were created to produce goods and services. For markets in rich countries. Workers from Lanka took planes to workplaces overseas, where there was demand for them. Others remain unemployed in this country, because there are no enterprises that can pay competitive wages.

That brings us to the woeful inadequacy of interpleural activity in this country. The provision of health and sanitation and education in this country has been primarily the government’s responsibility. They have been resounding successes. Their success has had expected consequences on population changes. Our governments have systematically invested in peasant agriculture, placing populations from crowded areas in less densely populated areas. During the last 20 years or so, governments have invested, at exorbitant cost, in infrastructure development. The main visible enterprises in the private sector are in finance, construction and the manufacture of garments. Garment manufacturing is a low productivity activity (shoved out of high productivity economies), and there is severe competition for market shares. China (+Taiwan), Malaysia and India have employed millions of people in manufacturing high-wage products for markets in growing markets. To make matters worse, ground conditions in Lanka over a long period have been inimical to foreign enterprises. In the early 1960s, whatever foreign enterprises were inherited from colonial times were nationalized. Since then, the fate of attempts to establish foreign enterprises has not been bright. Every successive government, during the last few decades, has declared itself welcoming foreign investment. There were no takers. Foreign capital that came created disabling debt. In a society notoriously lacking entrepreneurial talent and overrun with corruption, debt inflows will create problems. We must grow enterprises (not wayside kade, which is a common sign of underemployment) and decide to create conditions that truly welcome foreign investment to provide full-time time well-paying jobs.

An education system by itself can do little to create employment, except in teaching.

by An Observer

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Opinion

Lesson from the Pope

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Pope Francis passed away on 21st of April at the age of 88. The College of Cardinals commenced the process for the selection of the next Pope. This could take up to five days, during which time the Cardinals are completely confined, within the assigned quarters, provided with meals and comforts of a high-end hotel.

Not surprisingly, most of the Popes have been Italians. However, Pope John Paul II, was of Polish origin, and was succeeded by the (German) Pope Benedict XVI who retired in 2013, on grounds of ill-health. At the time of writing this, it has been announced that a new Pope has been voted in by the Electoral College of Cardinals. He has chosen the title of “Pope Leo XIV.” He became the first American to head the papacy.

Pope Francis, as did his predecessor, Pope John Paul II, reduced the usual formal trappings and rituals of office, and exuded an aura of benign, avuncular simplicity. All three of most recent papacy, chose to exchange the comforts and grandeur of the Papal Palace, for the simpler basic quarters within the Vatican, normally reserved for dignitaries of the Catholic Church, when visiting Rome, for church duties as necessary.

His Holiness the Pope is the nominal Leader of the 1.3 billion Roman Catholics in the World and the titular custodian of the Vatican City and its treasures, (including the priceless St. Peter’s Cathedral). He may thus be regarded as the wealthiest man on earth. The “Vatican City” is the smallest country in the world, being a mere 44 hectares and with a population of less than one million. It is for all practical purposes independent of Italy, although located within Rome.

The millions who would have watched the Pope’s funeral on TV, would have (as did I), been impressed by the fact that the casket was in effect, a simple box, devoid of metal trimmings, handles and satin linings, etc. Usually, papal coffins are said to be nests of three units. The innermost is of Cypress wood (symbolizing simplicity), a lead lining, (for preservation of documents), and the outermost of Oak (to signify resolve and strength).

In contrast, we go well beyond, perhaps in the belief that we could be regarded as being “cheap and stingy” rather than of being “simple and affordable”. Even the poorest, will exceed the limits of affordability. The further consideration would be that of environmental damage, in terms of timber consumption, tree depletion, and carbon dioxide emissions, particularly where cremation is preferred. Are the metal trimmings which may need considerable quantities of timber.

Hard and fibre-board may provide opportunities for the design of less expensive models, able to satisfy both aesthetic and practicality at affordable cost.

The Buddha has pointed out that after death, the body is akin to a mere fathom long bundle of wood.

These may well be regarded as worthy lessons to be learnt.

Dr. Upatissa Pethiyagoda

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Opinion

Sri Lanka’s energy crisis:

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The future – Part I

 

Authors: Emeritus Professor I.M. Dharmadasa; Emeritus Professor Lakshman Dissanayake; Emeritus Professor Oliver Ileperuma; Professor Wijendra Bandara; Ms Nilmini Roelens; Mr Saroj Pathirana; Professor Chulananda Gunasekara; Eng. Parakrama Jayasinghe; Dr Keerthi Devendra; Dr Geewananda Gunawardana; Dr Lakmal Fernando; Dr Vidhura Ralapanawa; Dr. Ajith Weerasinghe.

Summary

The relevant energy technology mix for Sri Lanka at present is indigenous large hydro & mini-hydro systems, biomass, solar farms and solar PV on roof tops, wind and imported fossil fuels.

Sri Lanka is very vulnerable to climate change and made international commitments in relation to an energy transition towards 100% zero Carbon technologies by 2050.

The national electricity grid should be upgraded in a phased manner to absorb more renewables which are freely available and move towards achieving a smart grid.

Current efforts should also be focused on rapid expansion of renewable applications and gradual reduction of the use of imported, expensive and polluting fossil fuels. Other energy solutions such as nuclear are highly inappropriate, unaffordable and dangerous for Sri Lanka.

A phased move towards a smart grid will enable Sri Lanka to produce the future energy carrier, green hydrogen, using excess renewables, and becoming independent and secure as an energy exporting country. Sri Lanka should not miss the green hydrogen revolution and must not regress by remaining dependent on imports of globally dwindling fossil fuel with its environmental and geopolitical risks.

1.0 Introduction

The national electricity grid in Sri Lanka has been failing several times recently, plunging the entire country into darkness, with six countrywide blackouts during the past five years.

The Ceylon Electricity Board (CEB) attributes the instability to an outdated grid that cannot accommodate small-scale renewable energy providers. This was proven to be a false premise according to their own committee of investigation. However, the CEB has issued press releases calling for the shutting down of both rooftop solar systems and mini-hydro systems during festive periods, when the demand for power is lower, the implication being that micro-renewable energy is somehow the cause of the problem.

The CEB clearly does not favour renewable energy from small suppliers. It is, nevertheless, unacceptable to maintain the status quo with imported fossil fuels and high energy prices. Renewable energy is sustainable and cheaper energy prices will not only help us improve the standard of living of all and attract investors, thereby enhancing job opportunities and national income.

This article openly discusses this energy crisis, considers the root causes of the situation, weighs up current trends in the rest of the world, and recommends a way forward for Sri Lanka’s future in relation to its energy needs.

2.0 Energy Supply options for Sri Lanka

Sri Lanka has made several energy-related commitments to the United Nations, including reducing greenhouse gas emissions by 14.5% by 2030, achieving 70% renewable energy in electricity generation by 2030, and aiming for net-zero emissions by 2050. Sri Lanka also signed the No New Coal Energy Compact, committing to not building any new coal power plants. These commitments align with obligations under the Paris Agreement and the UN Sustainable Development Goals.

Is the current energy policy in keeping with these commitments?

The relevant energy technology mix currently is indigenous large hydro & mini-hydro systems, biomass, solar PV on rooftops and solar parks, wind and imported fossil fuels. The term biomass includes the Dendro project, biogas and energy from waste.

Other possible renewable energy sources like waves and tidal are not yet feasible for Sri Lanka. Imported LPG is promoted by the authorities with inaccurate claims of LNG as a clean fuel and information as to the cost of generation is somewhat misleading.

Other energy technologies like geo-thermal and nuclear are not suitable for our island nation not only due to the scarcity of large capital funds (without becoming dependent on and susceptible to foreign geo-political interests) but also the magnitude of their inherent dangers. Nuclear energy cannot meet urgent energy needs. Nuclear power presents further serious issues including problems such as enormous capital costs for commissioning, disposal of radioactive toxic waste, the risk of irreparable damage from nuclear accidents due to natural and manmade causes such as potential harm from tsunami, terror attacks, risks from power failures, and gigantic de-commissioning costs. Nuclear energy is thus not “clean” energy although its proponents seek to present it as such.

3.0 World Energy Scenarios

Since the industrial revolution fossil fuel has advanced two thirds of the world’s population. Most of the infrastructure has been established to use carbon-based fossil fuels (coal, diesel & petrol and natural gas).

This carbon economy has caused numerous issues such as air and environmental pollution, serious health issues, and wider problems like global warming and climate change. Sri Lanka has no indigenous fossil fuel resources and thus our energy security is gravely threatened by heavy reliance of imports.

The remaining one third of the world’s population is not connected to electric grids, suffer from abject poverty and are vulnerable to the heavy storms, flash floods, cyclones, hurricanes and tornadoes many of which are engendered by climate change, brought about by “the advancement” of the other two thirds.

Sri Lanka is said to rank as the sixth country most at risk from climate change.

worldwide community is now moving rapidly to take action to decarbonise the world to mitigate climate change risks.

4.0 The Global Energy Transition

It would be pertinent to begin this discussion with the data presented in a report published in 2024 by the International Renewable Energy Agency (IRENA). This has compared the energy use in the world in 2022 with the projected target use in 2050. (See Table)

The main trends of this energy transition are due to many reasons.

For both climatic reasons as well as equity, the use of fossil fuels will be drastically reduced from 63% to 12%, in favour of direct renewables, which will be doubled from 23% to 52%. Modern biomass and hydrogen are also indirect renewables and hence the total use of renewables would be 81%.

5.0 Unique opportunity for Sri Lanka to export Green Hydrogen

Common complaints about the two main renewables, solar and wind power, are said to be their intermittency. Scientists have however been working to solve this problem, and besides storage options, the solution will be the forthcoming Green Hydrogen revolution.

The future energy carrier will be green hydrogen produced by solar and wind power, which are available in great abundance for us. Throughout the world a GH revolution is taking place.

The pressurised hydrogen can be stored, transported and burned whenever needed to produce power, or as a source of thermal energy.

The important takeaway is that when hydrogen is burned for power, only water vapour is produced, without any air pollution. Only water vapour is produced during the burning of hydrogen without any air pollution. GH can be stored and burned whenever energy is needed, especially during nighttime.

A ready market exists in the shipping industry which already has stringent deadlines to reduce the use of fossil fuels. Green hydrogen is also used to produce ammonia and methanol, enabling the production of fertilisers and other chemicals in industry. Since hydrogen is a versatile future fuel, scaling up and commercialisation of this innovative energy source is taking place globally.

If Sri Lanka is astute, it can capture a large share of these markets being blessed with year-round sunshine or monsoon rains together with wind power.

According to the statistics published by the Sri Lanka Sustainable Energy Authority (SLSEA), the potential of solar and wind power are 104,000 MW and 102,000 MW, respectively. This brings the total of solar and wind power potential to 206,000 MW whereas the present Sri Lankan power production capacity is in fact less than 5,000 MW.

Our country is thus “sitting on a goldmine” in the forthcoming green hydrogen revolution. However, focusing doggedly on fossil fuels Sri Lanka is at considerable risk of “missing the bus”.

Having missed several opportunities in the past, including in the Information Technology (IT) and Bio-Technology fields, our neighbours saw the opportunities and have been developing their countries exponentially in these sectors.

Instead of continuing to import expensive fossil fuels, Sri Lanka would be able to export the green hydrogen produced using our freely available solar and wind power.

Exports can be to those countries which are not blessed with such natural resources, notably those in the northern hemisphere such as Europe and North America and bring much needed foreign income.

This is also a far better and safer option than the proposed HVDC cable connection with India, which is fraught with many Energy Security and national sovereignty issues,

Green Hydrogen produced with renewables would help the Sri Lankan economy grow rapidly with an enormous boost of foreign income and redressing any balance of trade deficits that currently blight our nation.

It is a no brainer.

6.0 What is the shape of energy in Sri Lanka now?

The CEB’s position is that they cannot balance the grid due to the power produced and fed to the grid from privately owned roof top micro-solar and mini-hydro systems.

We note the press release of 13th April 2025 to requiring the temporary pause of rooftop solar to protect grid stability. This claim is adequately debunked by the Committee report on the recent blackout. The link to the CEB press release is reproduced below for ease of reference.

The higher echelons of the CEB appear therefore to be seeking regressive measures contrary to the stated objectives of the present government and in violation of international obligations of Sri Lanka as a part of its Agenda 2030 or Agenda 2050.

The renewable energy sector could generate not only clean and affordable energy at a fraction of the price but also enormous skilled employment opportunities.

From three small solar companies in the early 1990s there are now over 300 active solar companies maintaining some 40,000 jobs for locals. Further development of micro renewables would assure not only thousands more jobs for engineers but will provide opportunities for more local women to be trained in installation and related engineering work as a part of the gender parity sustainable development goals.

The somewhat “reluctant” attitude of the CEB towards renewables is clear. If this is not the case, we would ask the CEB to state its position clearly and to demonstrate a genuine willingness to improve the national grid to enable Sri Lanka to be in lock step with the rest of the world on clean and renewable energy. Moreover, as a state-owned organisation we urge the new Government authorities to require the CEB comply with international commitments and trends.

The remainder of this article looks in depth at these issues and provides recommendations.

7.0 The Main issues for the power sector in Sri Lanka

7.1 CEB’s preoccupation with imported and expensive fossil fuels

During the early stages of renewable energy development, one might have imagined that a certain “visionary approach” would have been necessary as these technologies were relatively expensive just as with any other new technologies. However, far thinking researchers in the field saw the limitless potential and impact renewables presented for the development of Sri Lanka and now renewables present the cheapest, cleanest and safest of energy options.

Interest in renewable energy increased over time and led to the formation of the Sri Lanka Sustainable Energy Authority in 2007 and the introduction of programmes such as the “Soorya Bala Sangramaya” in 2011 with Net Metering and further expansion in 2016 with Net Accounting and Net Plus schemes.

In the early 1990s, an RE consortium was established using a Higher Education Link programme between the UK and Sri Lanka and this organised a series of high-profile conferences.

At one of these conferences, the policymaker of the CEB declared “The future of Sri Lanka is Coal, Coal & Coal“. The position appears not to have shifted. What is the reason for this regressive approach? Developed countries have been closing their coal mines since coal belongs to the dark ages of energy supplies.

Fossil fuels are finite resources; coal is the most damaging fuel, and it adds carbon dioxide, sulphur dioxide, nitrous oxide, and particulate matter contributing both environmental pollution and respiratory illness. Coal ash, produced at a rate of 291,000 tons a year, is another hazard, . It is dumped on open ground currently.

(To be concluded)

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