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Opinion

Some thoughts on green financing options for Sri Lanka

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By Prof. Nimal Gunatilleke

continued from yesterday)
Debt-for-Climate Swaps

Debt-for Climate Swaps are also emerging as yet another viable option that can generate the much-needed fiscal space for Middle-Income Countries like Sri Lanka to focus on climate ambitions and economic recovery while reducing their overall debt burdens.

A debt for climate swap is an agreement between a sovereign debtor and one or more of its international creditors by which the latter forgives all or a portion of the debtor’s external debt in exchange for a commitment by the debtor to invest, in domestic currency, in specific climate projects during a commonly agreed period. The rationale behind debt swaps is that debt can be acquired at a discount. When creditors do not expect to recover the full nominal value of debts, they may be willing to accept less. In exchange for (partial) cancellation of the debt, the debtor government is prepared to mobilise the equivalent of the reduced amount in local currency for agreed purposes on agreed terms. The Debt for Climate swaps help countries struggling to service their debts to reduce the debt and free up fiscal space (cash flow) for climate-friendly investments.

Debt swaps provide opportunities for raising capital especially in low-income countries to address environmental and other policy challenges and support green growth. For the debt for climate swaps, the debtor government commits to invest the accrued savings from debt forgiveness in climate adaptation or mitigation. Debt-for-climate swaps have the potential to transform daunting debt into opportunities to reduce climate vulnerability and implement much-needed adaptation. These swaps would thus contribute to the Paris Agreement, which stipulates that developed countries should mobilize climate finance from a wide variety of sources through a variety of actions.

The potential for using debt-for-climate swaps as an innovative financial solution to the twin crises of climate change and debt distress is very high. Such debt swaps provide opportunities for raising capital in debt-stridden low-income countries to address environmental and other policy challenges and support green growth. However, only when the debt has been made sustainable, the swaps can transfer resources for climate purposes.

A number of developing countries are engaging in debt-for-climate swaps since Seychelles secured the world’s first debt-for-climate swap deal for protecting the world’s oceans with the Paris Club group of developed country creditors in 2016, aimed at ocean conservation and climate resiliency. Since then, several Small Island Developing States (SIDS), especially those in the Caribbean region too have joined this program. These countries are facing situations similar to those that we in Sri Lanka, are currently undergoing. They too are heavily indebted countries with tourism-dependent economies more recently worsened by COVID -19 pandemic and subjected to serious climate vulnerabilities.

Activities that can be funded through this debt structuring, include management of marine reserves, coral and mangrove restoration, improving marine, fisheries, and coastal policies, economic diversification, and climate resiliency of coastal communities.

Debt for Climate Swaps provide excellent opportunities for promoting climate change mitigation projects such as the accelerated phasing-out of coal power projects. Quite fortuitously, 40 countries including Sri Lanka pledged at the COP 26 meeting of the UNFCCC held in Glasgow in 2021 and also agreed not to build/fund any new coal power plants. In the light of these recent developments in relation to the UN Convention on Climate Change and the internationally binding Paris Agreement, the Long-term Generation Expansion Plan (LTGEP) for Sri Lanka may need to be reworked. This plan envisages the retirement of several thermal power plants that are likely to be taken off from operation due to their age-related mal-functioning and more importantly, the construction of two more coal-fired power plants totaling 1500MW in the late 2020s. Debt for Climate Swaps are strong candidates for facilitating the early retirement of coal/thermal power plants and investing in energy-efficient clean energy projects in Sri Lanka.

Debts for Climate Swaps are also eligible for climate change adaptation which include Nature- based Solutions that include conservation and enhancing diversity by restoration of degraded lands including wetlands. The rationale for undertaking such projects, which are often not commercially viable business models, is that their benefits, such as enhanced biodiversity, higher water tables, carbon capture, improved well-being of citizens, green jobs created, etc. far outweigh the costs involved. Their socio-economic benefits being intangible are often not captured or are externalized in standard benefit/cost analyses. However, in this Decade of Forest Restoration declared by the United Nations, such ventures partnered with developed countries are being used to reduce the debt burden of developing countries.

Conclusions

In summary, Sri Lanka has in place most of her key development strategies and plans for the next several years in conformity with major global conventions on biodiversity, climate change, and combating land degradation. They are the following:

National Biodiversity Action plan (NBSAP 2016-2022),

National REDD+ Investment Framework and Action Plan (NRIFAP 2018-2022),

National Action Program for Combating Land Degradation in Sri Lanka (NAP-CLD 2015 -2024),

National Adaptation Plan for Climate Change Impacts in Sri Lanka (2016 – 2025).

Using the information provided by these strategic action plans, the Central Bank of Sri Lanka together with Ministry of Environment has prepared a Biodiversity Finance Plan (BFP) for Sri Lanka (2018 – 2024) with 13 prioritized finance solutions some of which I have highlighted in this article. The donor agencies are also very much interested in entering into green financing partnerships with countries in need of investment capital. Therefore, every effort should be made to make this current adversity an opportunity of a lifetime.The Prime Minister informed the parliament on 06th July 2022 that Sri Lanka is participating in the bailout negotiations with the IMF as a bankrupt country and is going into a deep recession this year and have to face current difficulties extending into 2023, as well. As such, the country needs to submit a plan on Sri Lanka’s debt sustainability separately to the IMF for which a strong political leadership to take visionary decisions is the order of the day.

At this critical juncture of our nation, it may be well worth reminding ourselves of the historic words of John F. Kennedy at his inaugural address as the 35th president of the United States in 1961‘My fellow Americans, ask not what your country can do for you – ask what you can do for your country’ which challenged every American to contribute some way to the public good. Also, what a one-time prime minister of Sri Lanka SWRD Bandaranaika wrote in his son -Anura’s album which later became a more public proclamation ‘the main duty of man is to serve man’ are words that we need to convert to deeds at this moment of despair.

This is in stark contrast to protesting with the stereotypic slogans ‘Diyaw, diyaw, diyaw’ by the politically indoctrinated trade unions and the misguided young intelligentsia at every turn during this period of despondency with much inconvenience and annoyance, in particular, to the already suffering working class people. We are in need of a socially astute political leader with a vision who can stand tall and adapt the words of JFK as ‘My fellow Sri Lankans, ask not what your country can do for you – ask what you can do for your country’ in this hour of deep political and socio-economic crisis and turmoil to steady the ship and steer it safely to calmer waters. Finding a national figure with such qualities at this moment is the Quadrillion Rupee (inflation accounted for) problem!



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Opinion

A paradox of history

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Shakespeare

There seems to be a striking similarity between ancient Greece and modern Britain. Both countries remain paradoxes of history. Greece was a small city state constantly at war with neighbouring countries. It did not have a big army, but it had considerable sea power. However, Greece was a leading state over the whole of the Mediterranean. In fact, Greece was once a super power in the Western world.

Britain was very powerful in the 19th century. British justice was administered in Africa, India and Ceylon. British factories flourished in many countries and schoolchildren started reading R.L. Stevenson’s ‘Treasure Island’ and the works of Rudyard Kipling. What Ralph Waldo Emerson said in the 1850s is still valid today. He said, “If there’s one test of national genius universally accepted, it is success; and if there be one successful country in the universe for the last millennium, that country is England. It is the best of actual nations.”

In World War I, Britain faced a crushing defeat. Eventually, the British Empire was reduced to a Commonwealth. World War II shattered the image of Britain further. Although Britain lost much of its power, it continued to be an influential country. Even after achieving independence, India retained English as an official language. The British parliament system is well established in many Commonwealth countries. Some people still wonder how England still exercises its influence over the minds of men and women.

Staying power

There are many powerful countries in the world today such as the United States, Russia and China. Although England is not a super power, she has staying power. According to Oliver Wendell Holmes, a good part of greatness is simply being there. For that matter, England has been there for many centuries. So far no other country has been able to defeat her. As a result, sometimes we wonder whether we can have a world without England.

England has had an unwritten Constitution for a very long time. Other countries have emulated her political institutions. The British people have an established church with complete religious freedom. Although there are social classes in Britain, there has been no major clash among them. Unlike in many other countries, there are only two leading political parties in England. When the Labour Party is in power, the government is not subservient to labour. Similarly, when the Conservative Party is in power, the government is not conservative.

Most British colonies in the East including India and Ceylon did not sever the cultural and emotional links with Britain and retain them even after achieving independence. India became independent in 1947, but she decided to retain English as an official language. By doing so, India produced a number of English writers such as R.K Narayan. However, Ceylon did not give English any official status and treated it as a link language. As a result, students paid less attention to learning English. They were made to understand that everything can be done by learning Sinhala and Tamil. We have failed to produce English writers in the calibre of J. Vijayatunga who wrote ‘Grass for my feet.’

Politically shrinking

The United Kingdom is politically shrinking. However, its influence vibrates throughout the world. English has brought many nations together. There is a common understanding among countries that share the English language and literature. William Shakespeare’s dramas are staged in countries such as China where English is not an official language. People have come to the conclusion that English has become a broker of ideas and institutions.

England is not an aggressive country. However, if provoked, it can deliver a mortal blow to its enemy. British Prime Minister Margaret Thatcher showed her mettle as the iron lady. Britain held the fort against the might of Napoleon Bonaparte who ruled France. The country can still boast of a heavy moral credit. The British stick to their international agreements. The power of England draws mainly from its language. British people say ‘It’s right’ when it is right’. When it is not right, they say, ‘It’s not right.’ Meanwhile English occupies a pre-eminent place in world languages. All the research work in many parts of the world is available in English. You can learn any subject easily through English.

Apart from the language, people respect British standards which are technical specifications and quality benchmarks developed by the British Standards Institution. The United Kingdom’s independent national standards body was established in 1901. It maintains over 37,000 standards covering industries such as construction, manufacturing and technology ensuring safety and reliability.

British English

Standard British English is the variety of English that has undergone codification to the point of being socially perceived as the standard language associated with formal schooling, language assessment and official print publications. For historical reasons dating back to the rise of London in the ninth century, the form of language spoken in London and the East Midlands became the Standard English used in schools, universities, literature and law.

British English functions as one of the two major foundational and standard varieties of the English language alongside American English. It serves as a primary reference point for spelling and grammar. It acts as a global standard, and international institutions are often defined by specific pronunciation.

Most Sri Lankan doctors primarily move to England for postgraduate training, higher specialisation and better career prospects. They are driven by superior training infrastructure, world-class facilities and globally recognised qualifications.

To sum up, when you think of learning an international language, there is no alternative to English. If you wish to read literature, you cannot ignore eminent English dramatists and poets such as William Shakespeare and John Milton. Many leading Sri Lankans like S.W.R.D. Bandaranaike were Oxford University products. Therefore, English deserves to be made an official language in Sri Lanka.

karunaratners@gmail.com

By R.S. Karunaratne

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Opinion

State Literary Awards only for the rich?

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The Department of Cultural Affairs has once again called authors, and publishers to lodge their entries for selection of the prestigious State Literary Awards 2026.The criteria and conditions required and notified in the public domain, makes it mandatory for the literary work to be printed and published prior to submission for consideration of the awards. There is absolutely no provision for writers to submit their work in Manuscript form.

Where does that leave the financially impoverished writers who are talented, creative and wish to submit a well edited typescript of their work as manuscript for consideration of the State Literary Awards? In a literary environment that encourages a proliferation of self-published books of all forms and features presented by vanity publishers who have their eye on the purse of the author than on literary merit and artistic excellence, it is easy to show that you are an ” established writer” by spending your cash abundantly towards glossy covered books which the printing industry and fawning publishers will lap up with greed.

Even the Gratiaen Prize in Sri Lanka, sponsored by world-renowned Michael Ondaatje allows for Manuscript entries together with published books. Significantly, the manuscript entries that win the prize are assisted to publish their work which is part of the winnings. Many a young, aspiring writer with little funds who won the Gratiaen Prize on merit, but had submitted their entry in manuscript form have been thereby encouraged to submit their work on merit basis only.

It is a fact that the Commonwealth Short Story Prize, a massive state-supported initiative across 56 nations accepts only unpublished short fiction. Further, several countries in the world have established national or state level literary prizes that specifically accept unpublished manuscripts to provide equity in discovering new talent and supporting national literature without bias or favour. In Australia, Jamaica, Philippines, major national awards organised by the State for literature, specifically accept unpublished manuscripts for consideration.

Let’s face the truth. The printing costs are escalating. There is little demand in Sri Lanka for literary work in the English Language in particular. Traditional Publishing where the literary work is reviewed and assessed for talent and creativity and thereafter published is seldom found. The reviews and critical analysis of literary works are rare. But publishers make a pile by pandering to the vanity of aspiring writers who have the financial clout to pay their way through to being featured in prestigious award ceremonies and accolades. Thereafter, their substandard works get a further fillip by bearing the label of “Won the State Literary Award for Literature”! It is a cycle of literary charlatans and their pimps in the publishing industry for whom the price that is paid for publishing and not Meritocracy is the sine-qua-non.

Is this the level playing field promised by the NPP Government and their Marxist protagonists? A government that was voted into power on the platform of affording fair opportunity and equality seems to discriminate in favour of the Haves against the Have- nots in the cultural department to say the least! Anil Fernando

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Opinion

Delivering on English

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English literature offers a rich heritage of wonderful ideas and thoughts. The reader can be intellectually uplifted. It brings refreshing new vistas and stimulating new ideas. However, this English literature has to be first introduced to the student in order to fire up his or her interest and be made aware of this rich source of culture. Students of basic English as a second language work hard and learn all the hum-drum mechanics of the language, for which they get tested and graded. But importantly, nae crucially, this should be followed up with intellectual rewards for the students’ efforts – which, of course, is the enjoyment of the works of literature of the many great writers in the English language. This is the great payoff, the great dividend for all their efforts but this, apparently goes missing.

One of the obvious reasons for the lack of “follow through” may be lack of time allocated in the curriculum – or, perhaps, more darkly, the teachers’ own lack of knowledge of the great range of good reading materials produced by the countless generations of literary geniuses who have gone before. Such writers have laid down for us a heritage of glorious literary works in books and essays, all of which are to be found in any good library. It is thought that much of this good literature ought to be introduced to all students of English, “full stop,” as part of developing a knowledgeable and cultured society. (Isn’t that what we want?) Reading English literature should bring an intellectual enrichment to all those willing to drink from this Bacchanalian horn of plenty.

It must be said finally, that it can be fairly expected that most young people, especially those learning English as a second language, are totally unaware of the many outstanding pieces of writing that propel English to stand tall amongst the rest. That is, students need to be first introduced to great writings and have a spark of interest ignited in these great works of literature.

For example, by being introduced to “Daffodils,” a short descriptive poem by William Wordsworth, the student can get some very pleasant ideas to think on.

Do not overlook Conan Doyle’s “Sherlock Holmes” detective stories, each one captivating the reader’s attention right to the end. It is by these short stories that the novice reader can first consolidate his power of reading.

For light reading Jerome K. Jerome’s book “Three Men in a Boat” is suggested. On one occasion he goes to the library suffering from a slight hay-fever (allergy) seeking a cure. He consults a book, “Lexicon of Pharmacology”, and recoils in horror as his symptoms fit most of those diseases described in the book! He concludes he cannot live much longer and staggers home to rest and recuperate! This is a well related tale in the book – although seemingly quite implausible!

Similarly, by having the poem meanings explained, e.g. “What is Life if Full of Care?” by William Henry Davis – how he regrets that we humans are always in a hurry, too busy to notice or see the delights of nature, and scenes of natural beauty, e.g., a young woman’s smile as she passes by; we have no time to make friends and even kiss her. Regrets! Explaining this to students would bring a certain intellectual insight.

John Keats’s poem, “Ode to Autumn” is another great work describing the ripening fruits of the autumn season and how nature as a living being, brings to fruition all the good things of a rural landscape quietly humming with warmth after a hot summer.

Again, it is likely necessary to explain to a young, Sri Lankan mind the meaning of the descriptive poetry found in this magnificent poem.

This is the real English to be tasted and then swigged at lustily in pleasure and satisfaction, not some writing airing historical grievances for children to study!

1970 British Cohort Study

It should be observed here that the ‘1970 British Cohort Study’ followed 70,000 people to examine various aspects of their lives. One result discovered was that if a young person reads a lot, it develops his/ her general intelligence no-matter his parents; it makes him smarter.

It was also noted that reading brings life-long benefits; it improves mood, it helps with social skills, increases empathy, reduces anxiety, protects against depression and slows brain decay, the study found.

But these days many young people never gain a great competence in reading English; the fear is that standards are falling. This is bringing poorer critical thinking, less depth of personality and less empathy for others which has the result of a more turbulent society.

People are urged to switch off their headphones and read more of what they like – try reading the newspapers!

Priyantha Hettige

 

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