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Sri Lankan energy sector as millstone around nation’s neck  

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By Eng Parakrama Jayasinghe
parajayasinghe@gmail.com

Any economy thrives on a reliable and affordable supply of energy. This is a truism that no one has contested ever since the advent of the Industrial Revolution, when the modern form of energy elevated the human kind from the limitations of human and animal power. However, Sri Lanka has adopted a parochial view of this vital field with the authorities concerned jealously guarding the monopoly status they have carved out for themselves, both in the electricity sector as well as petroleum sector. They seem to think their duty is to meet the energy demand by whatever means with scant regard to sources of energy or the immense cost to the national economy.

The monopoly status enables them to continue this ill-conceived and short-sighted practice with dire consequences to the economy and all Sri Lankans, who are compelled to bear the burden of the cost of all the misdeeds and downright erroneous decisions of those responsible.

The CEB alone has suffered losses amounting to Rs 500 Billion over the past decade or so.Under the IMF not to incur any more losses, the government has jacked up tariffs.

So, the expectation was that the CEB would stop incurring losses in time to offer a clean balance sheet to facilitate the restructuring of it.But to one’s surprise, the media reports that this year too, CEB will run at a loss of a whopping Rs 50 Billion.

So, I believe that the titles and comments in my previous articles are quite appropriate. Some of them are given below:

Sri Lankan Electricity Sector – The Headless Chicken (15 Feb 2022) https://www.ft.lk/columns/Sri-Lankan-electricity-sector-The-headless-chicken/4-730564 A simple lesson in arithmetic on electricity sector (05 Dec 2022)  https://island.lk/a-simple-lesson-in-arithmetic-on-electricity-sector/

The CEB produces its long-term electricity generation plan (LTEGP) with a time horizon of 20 years implemented in two-year phases, but none of its objectives has become a reality so far. Of course, they will blame the government for not providing necessary funds, without ascertaining the reasons for their failure and the impracticability of a time horizon of 20 years in view of the clear evidence seen year after year.

Something else has cropped up recently—agitations by farmers in the South due to lack of water for their paddy cultivation and the Minister of Power refusing to release water from the Samanalawewa reservoir.

The CEB has forgotten its oft-repeated excuse for lack of better management of the hydro resource, claiming that the first priority of the reservoir water is for cultivation. This should have been evident from the prior warning issued by the Dept of Meteorology in April.

The occurrence of the El Nino phenomenon every 5-7 years is nothing new. Thus, it should at least be reflected in the LTEGP over several years with particular strategies to counter it in time with short term and long-term plans.

What did the CEB do to face this situation since the country experienced the unprecedented power cuts in 2022, not for lack of generation capacity but lack of funds including foreign currency to pay for fuel imports? We did not see any concerted effort to develop already proven indigenous RE resources.

But the interesting question here is why this sudden additional crisis, particularly affecting the southern farmers? While it is the southern region farmers who are affected by a scarcity of water for irrigation, the power authorities warn that only the southern region will have to face 3-to4-hour power cuts, if more water is released.  Doesn’t Sri Lanka have a highly integrated national grid and widely distributed and interconnected set of generators which should form a common pool?

Isn’t there some element that is not being disclosed here? There has been a long-delay in the construction of a transmission line from Polpitiya to Hambantota, depriving the CEB of flexibility in using such facilities. It has now been revealed that the mere 600m-long section over a tea estate has been holding up the completion of this 150 km power line. Where is the accountability of the CEB or the Ministry?

The 100 MW Solar park in Siyambalanduwa, which has been on the drawing board for many years, if implemented, would have added a substantial amount of low-cost renewable energy to the national grid, thus enabling the release of water of Samanalawewa for agricultural use.

The 2022 debacle should have prompted the CEB and the Ministry of Power and Energy to realise that the way forward was the rapid addition of RE to the grid, for which the private sector was ready and waiting.

The target of 70% RE contribution by 2030 still remains only a buzzword with no evidence of any pragmatic strategies or actions to reach this goal.  In contrast, Nature itself has shown the feasibility of this goal, which was achieved albeit for a few days in 2022, seven years ahead of schedule, as shown below. (See figure1)

Any prudent energy minister, if not the planners at CEB, should have viewed this as a good omen for reaching the target of 70% RE with immense value to the economy, balance of payment, energy security and environment as well as to the prestige of the country. There is absolutely no shortage of RE resources in the country and our own entrepreneurs and engineers have demonstrated the commercial viability of harnessing all the diverse sources of such energy at no cost to the utility. There is no other country in the world where nature has bestowed such bounty.

But in sheer contrast both the CEB and the Ministry have allowed the deterioration of the energy mix to 70% fossil fuels with disastrous consequences we face now, the depth of which is carefully hidden from the people. (See Figure 2)

It does not require much intelligence to fathom that all these moves are designed to perpetuate the use of fossil fuels introduced around 1995 with most dubious terms of contract and total lack of foresight of the consequences for the future, obviously for the benefit of a few and certainly not in the interest of the nation.

It is most interesting to note the number of issues surfacing at this point of time

(a) The refusal to release water for the farmers

(b)  The warnings of power cuts in the South

(c)The decision to use inordinate amount of oil for power generation over the first five months of the year, cited as needed to maintain the myth of no power cuts, as the prime demand of the people, who had got themselves adjusted to face limited power cuts, fully understanding the long term disadvantages of dependence on imported fossil fuels

(d) The lack of any information about the cost of using oil, which obviously scuttled any chance of the CEB covering the cost of generation even after the two tariff hikes

(e)  The long delay in announcing a viable feed in tariff for Non-Conventional Renewable Energy (NCRE), as distinct from the major hydro power , which developed entirely by the private sector , demonstrated a remarkable growth until the debacle of huge depreciation of rupee and massive hike in interest rates badly affected such growth, and the apathy of the authorities.  The tariff once announced after a two-year delay proved to be totally unbankable due to conditions imposed.

 (f) Most of all, the attempt to continue the use of “Emergency Power” at massive cost using imported oil. The recent advertisement is evidence of this. Sri Lanka may be the only country in the world where there is a permanent need for “Emergency Power: year after year.  It is now euphemistically called “Supplementary Power” Whom are they trying to bluff?  The cost of oil -based power now costs over Rs 100.00 per unit and the Supplementary Power would cost at least Rs 135.00 per unit and mostly in foreign currency.

(g) The 14-month long delay in settling the dues to the RE developers who nevertheless continued to provide the much-needed low cost power to the national grid. However, the money and Forex needed to import oil and coal has been found by whatever means

(h) The release of large extents of lands and project approvals to the Indian Company, Adani, in total violation of the Electricity Act and without any competitive tenders. This is the ploy used by CEB to block RE projects over seven years in spite of the clear provisions for declared Feed in Tariff (FIT) for NCRE projects under the SLSEA Act of 2007.

(i) It is not yet clear what is the applicable tariff for ADANI and whether it would be paid in FOREX, which would be a clear travesty of natural justice vis-a-vis local developers.

(j) The disappearance of the Expression of Interest (EoI) received for development of RE Projects up to 50 MW capacity. It was reported that projects of cumulative capacity 600 MW were received and there was a modicum of transparency and competitive tender process.

The bottom line is clear

All these actions and manipulations could lead to achieve one single objective in spite of all declarations and protestations to the contrary. The ever-increasing demand for energy and increasing cost of inputs and services would raise expectations of many to tap that pot of gold. There is no harm at all in such expectations and entrepreneurs benefiting by transparent and fair means within the constraints of safeguarding national interests, economically, financially and environmentally, not to mention the energy security.

It would also be found that use of Renewable Energy Technologies which depend on natural elements of Solar and Wind does not present opportunities for such manipulations, nor does supply chain of fuelwood from small farmers can be exploited.  As such, all activities so far are likely to result in the following:

(a) Discouraging any local developers of renewable energy, who were making very good progress contributing to the national energy supply and demonstrating most satisfactory technical competence. Some have even successfully ventured abroad.

(b) Closing the opportunity to local relatively modest indigenous investment by allowing foreign investors to develop large projects which will block the access to available transmission infrastructure and grid stations. This is reportedly already happening.  It must be emphasized that all RE projects consist of a large number of small units, with even wind plants being limited to about 5 MW each. There is no reason technically or financially to aggregate them to large projects and pretend that local entrepreneurs or banks cannot fund them and put them out of their reach.

(c) The rooftop solar PV sector is devoid of any of these issues, except the reluctance and lethargy of the CEB to facilitate its rapid development, which may require only minor improvement of the grid infrastructure in some areas.  This is the best way to meet the short-term energy deficits without resorting to expensive “Supplementary Power “. Perhaps, the reason for such reluctance is evident here.

(d)  The slowdown of the rapid deployment of RE projects particularly the Roof Top Solar was due to the heavy depreciation of the rupee and the massive hike in bank interest rates. However, the government is blind to the opportunity of tapping many concessionary funds for low cost funding to finance the RE sector. These could also help them to develop the transmission infrastructure needed to absorb the RE generated. Such development should logically match the feasible RE development by local developers first and not to venture in to the projects proposed under the LTEGPs which never materialise

What Sri Lanka needs most urgently is for the national interest to be the driving force in the power and energy sector. Will the restructuring of CEB help achieve this objective?We expect the Minister of Power and Energy to act fast and deliver this urgent service to Sri Lanka instead of making mere tweets and declarations.



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Features

Ranking public services with AI — A roadmap to reviving institutions like SriLankan Airlines

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Efficacy measures an organisation’s capacity to achieve its mission and intended outcomes under planned or optimal conditions. It differs from efficiency, which focuses on achieving objectives with minimal resources, and effectiveness, which evaluates results in real-world conditions. Today, modern AI tools, using publicly available data, enable objective assessment of the efficacy of Sri Lanka’s government institutions.

Among key public bodies, the Supreme Court of Sri Lanka emerges as the most efficacious, outperforming the Department of Inland Revenue, Sri Lanka Customs, the Election Commission, and Parliament. In the financial and regulatory sector, the Central Bank of Sri Lanka (CBSL) ranks highest, ahead of the Securities and Exchange Commission, the Public Utilities Commission, the Telecommunications Regulatory Commission, the Insurance Regulatory Commission, and the Sri Lanka Standards Institution.

Among state-owned enterprises, the Sri Lanka Ports Authority (SLPA) leads in efficacy, followed by Bank of Ceylon and People’s Bank. Other institutions assessed included the State Pharmaceuticals Corporation, the National Water Supply and Drainage Board, the Ceylon Electricity Board, the Ceylon Petroleum Corporation, and the Sri Lanka Transport Board. At the lower end of the spectrum were Lanka Sathosa and Sri Lankan Airlines, highlighting a critical challenge for the national economy.

Sri Lankan Airlines, consistently ranked at the bottom, has long been a financial drain. Despite successive governments’ reform attempts, sustainable solutions remain elusive.

Globally, the most profitable airlines operate as highly integrated, technology-enabled ecosystems rather than as fragmented departments. Operations, finance, fleet management, route planning, engineering, marketing, and customer service are closely coordinated, sharing real-time data to maximise efficiency, safety, and profitability.

The challenge for Sri Lankan Airlines is structural. Its operations are fragmented, overly hierarchical, and poorly aligned. Simply replacing the CEO or senior leadership will not address these deep-seated weaknesses. What the airline needs is a cohesive, integrated organisational ecosystem that leverages technology for cross-functional planning and real-time decision-making.

The government must urgently consider restructuring Sri Lankan Airlines to encourage:

=Joint planning across operational divisions

=Data-driven, evidence-based decision-making

=Continuous cross-functional consultation

=Collaborative strategic decisions on route rationalisation, fleet renewal, partnerships, and cost management, rather than exclusive top-down mandates

Sustainable reform requires systemic change. Without modernised organisational structures, stronger accountability, and aligned incentives across divisions, financial recovery will remain out of reach. An integrated, performance-oriented model offers the most realistic path to operational efficiency and long-term viability.

Reforming loss-making institutions like Sri Lankan Airlines is not merely a matter of leadership change — it is a structural overhaul essential to ensuring these entities contribute productively to the national economy rather than remain perpetual burdens.

By Chula Goonasekera – Citizen Analyst

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Features

Why Pi Day?

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International Day of Mathematics falls tomorrow

The approximate value of Pi (π) is 3.14 in mathematics. Therefore, the day 14 March is celebrated as the Pi Day. In 2019, UNESCO proclaimed 14 March as the International Day of Mathematics.

Ancient Babylonians and Egyptians figured out that the circumference of a circle is slightly more than three times its diameter. But they could not come up with an exact value for this ratio although they knew that it is a constant. This constant was later named as π which is a letter in the Greek alphabet.

Archimedes

It was the Greek mathematician Archimedes (250 BC) who was able to find an upper bound and a lower bound for this constant. He drew a circle of diameter one unit and drew hexagons inside and outside the circle such that the sides of each hexagon touch the sides of the circle. In mathematics the circle passing through all vertices of a polygon is called a ‘circumcircle’ and the largest circle that fits inside a polygon tangent to all its sides is called an ‘incircle’. The total length of the smaller hexagon then becomes the lower bound of π and the length of the hexagon outside the circle is the upper bound. He realised that by increasing the number of sides of the polygon can make the bounds get closer to the value of Pi and increased the number of sides to 12,24,48 and 60. He argued that by increasing the number of sides will ultimately result in obtaining the original circle, thereby laying the foundation for the theory of limits. He ended up with the lower bound as 22/7 and the upper bound 223/71. He could not continue his research as his hometown Syracuse was invaded by Romans and was killed by one of the soldiers. His last words were ‘do not disturb my circles’, perhaps a reference to his continuing efforts to find the value of π to a greater accuracy.

Archimedes can be considered as the father of geometry. His contributions revolutionised geometry and his methods anticipated integral calculus. He invented the pulley and the hydraulic screw for drawing water from a well. He also discovered the law of hydrostatics. He formulated the law of levers which states that a smaller weight placed farther from a pivot can balance a much heavier weight closer to it. He famously said “Give me a lever long enough and a place to stand and I will move the earth”.

Mathematicians have found many expressions for π as a sum of infinite series that converge to its value. One such famous series is the Leibniz Series found in 1674 by the German mathematician Gottfried Leibniz, which is given below.

π = 4 ( 1 – 1/3 + 1/5 – 1/7 + 1/9 – ………….)

The Indian mathematical genius Ramanujan came up with a magnificent formula in 1910. The short form of the formula is as follows.

π = 9801/(1103 √8)

For practical applications an approximation is sufficient. Even NASA uses only the approximation 3.141592653589793 for its interplanetary navigation calculations.

It is not just an interesting and curious number. It is used for calculations in navigation, encryption, space exploration, video game development and even in medicine. As π is fundamental to spherical geometry, it is at the heart of positioning systems in GPS navigations. It also contributes significantly to cybersecurity. As it is an irrational number it is an excellent foundation for generating randomness required in encryption and securing communications. In the medical field, it helps to calculate blood flow rates and pressure differentials. In diagnostic tools such as CT scans and MRI, pi is an important component in mathematical algorithms and signal processing techniques.

This elegant, never-ending number demonstrates how mathematics transforms into practical applications that shape our world. The possibilities of what it can do are infinite as the number itself. It has become a symbol of beauty and complexity in mathematics. “It matters little who first arrives at an idea, rather what is significant is how far that idea can go.” said Sophie Germain.

Mathematics fans are intrigued by this irrational number and attempt to calculate it as far as they can. In March 2022, Emma Haruka Iwao of Japan calculated it to 100 trillion decimal places in Google Cloud. It had taken 157 days. The Guinness World Record for reciting the number from memory is held by Rajveer Meena of India for 70000 decimal places over 10 hours.

Happy Pi Day!

The author is a senior examiner of the International Baccalaureate in the UK and an educational consultant at the Overseas School of Colombo.

by R N A de Silva

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Sheer rise of Realpolitik making the world see the brink

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A combined US-Israel attack on Iran.(BBC)

The recent humanly costly torpedoing of an Iranian naval vessel in Sri Lanka’s Exclusive Economic Zone by a US submarine has raised a number of issues of great importance to international political discourse and law that call for elucidation. It is best that enlightened commentary is brought to bear in such discussions because at present misleading and uninformed speculation on questions arising from the incident are being aired by particularly jingoistic politicians of Sri Lanka’s South which could prove deleterious.

As matters stand, there seems to be no credible evidence that the Indian state was aware of the impending torpedoing of the Iranian vessel but these acerbic-tongued politicians of Sri Lanka’s South would have the local public believe that the tragedy was triggered with India’s connivance. Likewise, India is accused of ‘embroiling’ Sri Lanka in the incident on account of seemingly having prior knowledge of it and not warning Sri Lanka about the impending disaster.

It is plain that a process is once again afoot to raise anti-India hysteria in Sri Lanka. An obligation is cast on the Sri Lankan government to ensure that incendiary speculation of the above kind is defeated and India-Sri Lanka relations are prevented from being in any way harmed. Proactive measures are needed by the Sri Lankan government and well meaning quarters to ensure that public discourse in such matters have a factual and rational basis. ‘Knowledge gaps’ could prove hazardous.

Meanwhile, there could be no doubt that Sri Lanka’s sovereignty was violated by the US because the sinking of the Iranian vessel took place in Sri Lanka’s Exclusive Economic Zone. While there is no international decrying of the incident, and this is to be regretted, Sri Lanka’s helplessness and small player status would enable the US to ‘get away with it’.

Could anything be done by the international community to hold the US to account over the act of lawlessness in question? None is the answer at present. This is because in the current ‘Global Disorder’ major powers could commit the gravest international irregularities with impunity. As the threadbare cliché declares, ‘Might is Right’….. or so it seems.

Unfortunately, the UN could only merely verbally denounce any violations of International Law by the world’s foremost powers. It cannot use countervailing force against violators of the law, for example, on account of the divided nature of the UN Security Council, whose permanent members have shown incapability of seeing eye-to-eye on grave matters relating to International Law and order over the decades.

The foregoing considerations could force the conclusion on uncritical sections that Political Realism or Realpolitik has won out in the end. A basic premise of the school of thought known as Political Realism is that power or force wielded by states and international actors determine the shape, direction and substance of international relations. This school stands in marked contrast to political idealists who essentially proclaim that moral norms and values determine the nature of local and international politics.

While, British political scientist Thomas Hobbes, for instance, was a proponent of Political Realism, political idealism has its roots in the teachings of Socrates, Plato and latterly Friedrich Hegel of Germany, to name just few such notables.

On the face of it, therefore, there is no getting way from the conclusion that coercive force is the deciding factor in international politics. If this were not so, US President Donald Trump in collaboration with Israeli Rightist Premier Benjamin Natanyahu could not have wielded the ‘big stick’, so to speak, on Iran, killed its Supreme Head of State, terrorized the Iranian public and gone ‘scot-free’. That is, currently, the US’ impunity seems to be limitless.

Moreover, the evidence is that the Western bloc is reuniting in the face of Iran’s threats to stymie the flow of oil from West Asia to the rest of the world. The recent G7 summit witnessed a coming together of the foremost powers of the global North to ensure that the West does not suffer grave negative consequences from any future blocking of western oil supplies.

Meanwhile, Israel is having a ‘free run’ of the Middle East, so to speak, picking out perceived adversarial powers, such as Lebanon, and militarily neutralizing them; once again with impunity. On the other hand, Iran has been bringing under assault, with no questions asked, Gulf states that are seen as allying with the US and Israel. West Asia is facing a compounded crisis and International Law seems to be helplessly silent.

Wittingly or unwittingly, matters at the heart of International Law and peace are being obfuscated by some pro-Trump administration commentators meanwhile. For example, retired US Navy Captain Brent Sadler has cited Article 51 of the UN Charter, which provides for the right to self or collective self-defence of UN member states in the face of armed attacks, as justifying the US sinking of the Iranian vessel (See page 2 of The Island of March 10, 2026). But the Article makes it clear that such measures could be resorted to by UN members only ‘ if an armed attack occurs’ against them and under no other circumstances. But no such thing happened in the incident in question and the US acted under a sheer threat perception.

Clearly, the US has violated the Article through its action and has once again demonstrated its tendency to arbitrarily use military might. The general drift of Sadler’s thinking is that in the face of pressing national priorities, obligations of a state under International Law could be side-stepped. This is a sure recipe for international anarchy because in such a policy environment states could pursue their national interests, irrespective of their merits, disregarding in the process their obligations towards the international community.

Moreover, Article 51 repeatedly reiterates the authority of the UN Security Council and the obligation of those states that act in self-defence to report to the Council and be guided by it. Sadler, therefore, could be said to have cited the Article very selectively, whereas, right along member states’ commitments to the UNSC are stressed.

However, it is beyond doubt that international anarchy has strengthened its grip over the world. While the US set destabilizing precedents after the crumbling of the Cold War that paved the way for the current anarchic situation, Russia further aggravated these degenerative trends through its invasion of Ukraine. Stepping back from anarchy has thus emerged as the prime challenge for the world community.

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