Opinion
New govt. to fast-track export-led growth strategy

By Jayampathy Molligoda
It is common knowledge that Sri Lanka never had a consistent export -led growth strategy. For decades, it has become a buzz word without having a proper infrastructure- both physical as well as soft skill- and much needed foreign and domestic investments. With frequent change of governments, export strategies have been changed and no determined efforts made to promote potential export products, marketing destinations and reap the benefits of positives of globalisation to link up with the global value chain (GVC).
Implement truly export led growth strategy:
It is recommended to appoint a high powered ‘economic advisory committee’ under the Presidential secretariat, comprising key officials of the government, drawn from the Treasury, Central Bank and other relevant institutions, together with a team of experts from private sector thus sharing the same vision and ideology of the new government.
It is suggested that the above mentioned economic advisory committee should pick up acceptable proposals without scrapping the already prepared export strategy and give leadership to effectively implement and monitor same through an efficient economic task force. Whilst supporting traditional exports, time is opportune to concentrate simultaneously for a diversified export portfolio such as newer exportable products as technology-based components, raw materials for chemical industries, bunkering product etc. As far as export of services are concerned, train and upgrade skills of Sri Lanka’s human resource at professional levels, such as nursing and health care services, technology-based services, skilled armed services, maritime and navel services, BPO ICT, etc. This will eventually minimise over- dependence of migrating unskilled labour to the Middle East thus creating unnecessary social issues to their families, children and society at large.
Strictly enforce much needed
fiscal discipline:
The already widened fiscal deficit has been further deteriorated by the recently announced relief measures to meet the COVID-19 packages by the government. Nevertheless, the forthcoming Budget should reflect further austerity measures. It is essential that budgetary allocations are restricted on foreign travel for non-essential purposes for some time and save foreign exchange. Current expenditure should be reviewed regularly and prioritize expenses until such time the economy gets back on track. As for state owned institutions, detailed action plans along with winning strategies should be implemented to minimize losses.
More transparent and equitable pricing formulas will have to be introduced for public goods. Purchase of paddy stocks by the government should be at a reasonable minimum price that covers the farmers cost of production and some element of profit. In order to determine price payable to paddy farmers, it is suggested to introduce a similar scheme such as a reasonable price payable to tea small holders under the Tea Control Act of 1957 as amended, could be used thus stemming from the retail price of rice varieties at the market.
Underprivileged, needy communities can be given subsidies. Indian method of transferring subsidies to underprivileged and bypassing the middlemen through banking system using ‘Aadhar programme’ should be studied and must be adapted to suit Sri Lanka. It is essential to prevent leakages of subsidy as it amounts to a huge drain to the treasury financing.
Link strategy to develop SMEs to global value chain:
It is of paramount importance that the government must revisit and re-activate the financial and banking system loan schemes and provide more wholistic assistance to SME’s, establish SME centres and to provide the necessary guidance and support services which include the following areas;
=Start a programme to promote SME exports linking with global value chain (Select 500 SMEs and support for export as quick starter)
=Engage with DFI’s who have done similar projects – IFC, ADB, JICA
=Encourage SME sector to move up in the value chain
=Give incentives for Sri Lankan expatriate with business ideas to come to Sri Lanka to set up enterprises
=Incentivize setting up of venture capital and Private Equity businesses to support these ideas
=Help Sri Lankan SMEs to find joint venture partners for technology transfer. Set up a fund to support research and Development in SME sector
=Create incubators close to- may be universities to encourage setting up of businesses.
=Restructure banking sector and have a separate window for SMEs in the designated banks.
Re-visit existing subsidies
including fertiliser:
As for fertiliser subsidy scheme, time is opportune to revise same to mitigate negative effects of such schemes. If the present subsidy scheme continues, the Government may not be able to achieve its production targets in the agricultural sub- sectors and the farmers will continue to criticize the Government’s policy implementation. Special cultivation calendar shall be introduced based on resource availability in each Agro- Ecological Zone (AEZ). Improve infrastructure facilities such as laboratories, consultation services, extension on recommending site specific fertilizer application. The strategy should be to export high variety crops in addition to maintain food security and replace unnecessary imported food items.
The government needs to ensure that fertilizer is available to the farmers at the correct time and at a revised level of subsidized price where ‘large-scale estate’ owners also get subsidized fertilizer. We need to educate farmers on the proper usage of fertilizer to suit the soil conditions, minimizing wastage and environmental damage. It goes without saying that the system must provide the optimum quantity of fertilizer at reasonable price in time. It is important to identify farm level factors that influence the adoption of straight fertilizers and it would help in promoting the use of straight fertilizers at the farm level. More investment on R&D as well as private sector involvement are needed for manufacture of fertilizers using locally available raw materials.
The following additional points are also recommended:
a. Oligopoly of present fertilizer importers should be taken away and the government should encourage small- scale importers/farmers/RPCs to enter in to the market to import or produce locally. This will resolve issues related to malpractices, fertilizer availability, etc.
b. There shall be no subsidy given to importers, however a ‘ceiling price’ based on the market rate of fertilizer as determined could be fixed taking into account the CIF price of importers. The Subsidy, being the difference between the ceiling price and the subsidized rate, should be given only to the selected beneficiaries and be paid in cash to their bank accounts.
c. Fertilizer will then be freely available in the market and the selling price could be monitored by the relevant agencies and if there is a requirement of controlling the fertilizer prices at the market, then the ‘ceiling price’ could be used by the government. The present subsidized rate should be increased from – Zero for paddy and/or Rs. 10,000 per metric ton (MT) to say, Rs 12,500 and for other crops, the fertilizer mixtures could be increased from the present Rs. 23,000 to say Rs 35,000/ per MT.
d. Government shall encourage farmers (higher subsidy) for “Site Specific Fertilizer Usage and Organic Fertilizer” and required technology shall be given through crop research institutions. Subsidy should be given only for Urea, MOP, TSP and SA. Subsidy on all other straight fertilizers/mixtures should be removed and encouraged to use only where necessary.
e. It is necessary to clear the outstanding subsidy payments to the suppliers of fertilizer by the treasury leaving no room for ‘blame assigning’ by the private sector.
This will enable the government to reduce the burden on the treasury for additional government expenditure on subsidy (at present Rs 50 Billion per annum) at least by 30%.
(1) Invite FDI under the Chinese led “Belt and Road Initiative” (BRI):
To increase foreign exchange earnings, it is important to enhance port and port services by expediting the already planned development activities. The new Government has already approved the installing three gantry cranes to the JCT and the contract to deepen the JC. There is nothing wrong in entering into JVs based on ‘PPP models’ as articulated under the agreement between the GOSL and ADB on Colombo break-water financing. Geo-political realities and the popular public sentiments on the concept of nationalism should not be construed as strictures for decision making ability for economic growth and the writer is confident the next government under the leadership of President Gotabaya Rajapaksa is capable of maintaining a balance between the two in order to fast track economic growth activities.
It is essential to resort to a full-scale effective drive towards getting FDIs for long term projects in a transparent manner and such FDIs should be used only for revenue yielding projects from which, at least part of the borrowing can be met. It will be useful to revert to the marine and maritime activities and Aviation hub concept and ensure that appropriate projects are listed under these two hubs as early as possible and invite FDI under the Chinese led “Belt and Road Initiative” (BRI) and also link up with the ASEAN supply chain trough BRI as Sri Lanka is not a member of the ASEAN.
Conclusion:
Sri Lanka has already demonstrated its ability to combat COVID-19 successfully and the need of the hour is to fast track domestic economic activities, thus enabling Sri Lanka to record a faster recovery than other countries to improve economic growth. A more pragmatic nationalistic ideology – socialist oriented market based economic development model, coupled with an Executive Presidential system of governance would be more suitable to implement inclusive economic development programme to improve quality of life of the people of this country.
(Writer acknowledges the contribution made by Dr Ranee Jayamaha and Mrs Thusitha Molligoda)
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.
Opinion
How monks practice Buddhism in Sri Lanka

Time was when we had to observe the five precepts chanting in front of the omnipresent Buddha statue in every Buddhist household, and pay homage to parents straight afterwards. Attend mandatory Sunday schools, trek about 6 miles (return) to Moratu Vidyalaya’s main hall together as a family on Fridays to listen to a sermon by erudite visiting monks from the Vajiraramaya and elsewhere.
Having been settled in the UK for half a century, I can only go by what I read and hear from Sri Lankan friends and families. All those practices seem to have changed for the worse, sadly! Living in luxury, temples are run on business models nowadays! Monks ask what they wish to eat at alms-givings, including pork, etc., tell how much it costs the laypeople to invite them, etc! Unbelievable to say the least! I dare say it seems to start from the top of the hierarchy – the Kandy Temples, where the prelates live and are patronised by all politicians from Presidents, Prime Ministers and others! Some monks engaging in politics is not uncommon! For example, a recent statement made by Ven. Dodampahala Rahula Thera during a religious ceremony held to bless former President Ranil Wickremesinghe on his birthday has sparked widespread discussion on social media.
Speaking at the event, Ven. Rahula Thera had claimed that he had advised then-President Wickremesinghe not to import fuel ahead of the 2024 Presidential Election. However, the Thera has since clarified that the remark was made in error due to the pressure of the moment. Pertinent question is why did he choose such intervention?
All these are in such sharp contrast to Buddhist monks in the Western world and South East Asia where they shun luxury to lead a truly monastic lifestyle in order to practise what they preach.
Respected and loved in his own country as a man of great wisdom, Ajahn Cha was also instrumental in establishing Theravada Buddhism in the West. Beginning in 1979 with the founding of Cittaviveka commonly known as Chithurst Buddhist Monastery) in the United Kingdom, the Forest Tradition of Ajahn Chah has spread throughout Europe, the United States and the British Commonwealth. The dhamma talks of Ajahn Chah have been recorded, transcribed and translated into several languages.
More than one million people, including the Thai Royal Family attended Ajahn Chah’s funeral in January 1993 held a year after his death due to the “hundreds of thousands of people expected to attend”. He left behind a legacy of dhamma talks, students, and monasteries. The little I know of Buddhism teaches me to practice His Noble Teachings. It follows therefore the importance of listening to practising Buddhist monks who actually command respect, not by their titles! They don’t mean anything to me. Not familiar with various Nikayas, I think Buddhist monks should have both their shoulders properly covered in the interests of propriety! Though not a vegetarian, I believe in Ahimsa as even little spiders feel pain. Though my wife is scared of them, I tell her they are scared of her, more to the point! So, I catch the innocent crawly creatures by hand to throw them out of harm’s way! We have stopped the practice of throwing inevitable food waste into Council provided bins, instead collect them on a regular basis to feed wildlife we have in abundance around rural Wales we live in. They are all gone the following day including old marrow bones after our two little dogs finish with them! It gives us great pleasure! In the end, it all boils down to respecting Mother Nature! It’s Mother’s Day today to remember Mother Nature and how proud I am of my surname!
Sunil Dharmabandhu
Wales, UK
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