Editorial
Tea snapshot
The publication of Merril. J. Fernando’s autobiography last month is a useful peg to hang a discussion on the Ceylon tea industry – we advisedly call it Ceylon tea rather than Sri Lanka tea – as the former is the name by which this unique product is known globally. Merril Fernando, of course, needs no introduction. He is very well known in this country as the creator of the Dilmah brand he coined from the names of his two sons, Dilhan and Malik, which he took to the world outside making it the best known nationally owned tea brand in Sri Lanka. As we said in a review of the book last Sunday, MJF is not the country’s biggest tea exporter but his is the best known nationally-owned brand of Ceylon tea in the tea drinking world.
During the British colonial years and the early post-Independence period, tea was our major export and foreign exchange earner. But decades ago garments overtook tea and also, remittances from blue collar workers striking out overseas to support their families back home became a reckonable factor in the country’s foreign exchange budget. Net earnings from tea, obviously, was far higher than what garments, that had by far become the country’s largest manufacturing industry fairly quickly, brought in. That was because the imported input into tea was a fraction of what the clothing factories had to import to manufacture their product. This included not only fabrics but much more. The labour was the major value adding factor in the domestic garment industry.
The major imported input into the tea industry is fertilizer. Like garments, tea growing too is a labour intensive industry. Onetime Finance Minister Ronnie de Mel who presented 10 national budget for the J.R. Jayewardene regime from 1977 to 1988 once famously said that Sri Lanka’s economy sits on a tripod of women workers – those slaving on the tea fields, working in the garment factories and venturing out as domestic servants largely to the Middle East. Never were truer words spoken. The British brought in indentured Tamil labour from India to work on their tea estates under harsh conditions because the upcountry peasantry was reluctant for various reasons to work on the plantations. These were created at tremendous environmental cost on land sold for a pittance under the infamous Waste Lands Ordinance of 1840.
This stipulated that “all forest, waste, unoccupied or uncultivated land was to be presumed to be the property of the Crown until the contrary is proved.” This resulted in the denuding of the country’s mountain slopes clothed with montane rain forests providing the sponge-like catchments for the rivers flowing through the valleys. The price paid was irreparable ecological damage to first plant coffee and then tea. The upcountry peasantry lost their common grazing land and much more to this despoliation that brought fame and fortune to British plantation owning companies quoted on the London Stock Exchange. Ceylon tea soon earned the reputation of being the world’s best and Merril. J. Fernando in his memorable over six decade long journey through the industry retains at age 92 a passion for the product that was the foundation of his success.
Apart from very readable accounts of his upbringing and early years covered in the book, Fernando has dwelt on the exploitation of Ceylon tea by the British whose chief focus was the bottom line. He writes that during the period of his training as a tea-taster in the UK he was greatly distressed “by the ruthless exploitation of our tea industry and its workers that took place in London.” He had developed a great respect for the British as a result of his friendship with many Brits resident her e as well as his employers who controlled much of the tea export trade. But all that was shaken when he realized what was being done in London to Ceylon tea by the British who dominated the global tea trade in Mincing Lane, “the world’s undisputed tea center controlling and manipulating the distribution and marketing of tea from grower countries.” He says that resulted in producers, especially those in Ceylon, being held to ransom adding that we were then more vulnerable to market manipulation than any other grower as about 90% of national production was being exported, a large proportion going to the UK.
A major service rendered to Ceylon tea by Merril Fernando was his resistance to efforts to make Sri Lanka a so-called ‘tea hub’ by importing cheap teas and blending them with Ceylon tea. This would have been a profitable business but at the cost of both the unique character and reputation of Ceylon tea. In the middle seventies, as result of the JVPs 1971 adventure attributed by the then rulers to land hunger, the land reform laws compelled the sale 150,000 acres of British-owned sterling estates at a price of Rs. 1,125 an acre (pounds 42 and 50 pence). It was agreed that the compensation would be “prompt, effective (meaning may be remitted) and adequate.” Payment was concluded over four years. Rather than alleviate land hunger, the plantations were vested in two monolithic state corporation, the Sri Lanka State Plantations Corporation and the Janatha Estates Development Board.
Despite the presence of 23 Regional Plantation Companies managing state-owned plantations leased to them in 14 regions, 70% of Sri Lanka’s tea is produced by nearly half a million smallholders mostly in the low country. Today the industry is hard-pressed for labour with the tea workers lot way below minimum norms. But the industry remains a vital segment of the Sri Lankan economy.
Editorial
Unfolding El Niño and burning issues
Thursday 27th August, 2026
The world is bracing itself for a historic El Niño event, which is very likely to be the strongest ever measured, “breaking records by a considerable and dangerous margin”, experts have warned. The World Health Organization, World Meteorological Organization (WMO) and World Food Programme are urging nations to be prepared for extreme weather conditions and their impact on health, food and energy systems.
Sri Lanka apparently believes in disaster response rather than disaster preparedness. It usually does not heed warnings or expert opinion. Unlike in the past, today, the world is lucky that El Niño is no longer unpredictable. About three months ago, WMO issued the first warning of the unfolding El Niño event. Sri Lanka should have sprung into action immediately afterwards.
The Ministry of Trade, Commerce, Food Security and Cooperative Development has reportedly launched a programme to ensure an uninterrupted supply of essential food items and stable prices amidst the possible global impact of the current El Niño phenomenon. It held a meeting, chaired by Minister Wasantha Samarasinghe, on Tuesday, to discuss ways and means of handling issues affecting food availability. According to media reports, the officials present at the meeting were of the view that the impact of El Niño on Sri Lanka could be minimal, but action had to be taken to face the food issues that might arise from possible disruptions to agricultural production in other countries and the resultant price escalations.
It has been reported that Tuesday’s meeting was attended by Ministry Secretary K. A. Wimalenthirarajah, Consumer Affairs Authority Chairman Hemantha Samarakoon, Cooperative Wholesale Establishment Chairman Kosala Wilbhava and Lanka Sathosa Chairman Ravindra Fernando, along with other officials and representatives of food importers. The government should involve all stakeholders in discussions on working out a strategy to accomplish the difficult task of ensuring food security, especially during disasters. A multi-sectoral approach is required, with the participation of officials and experts drawn from various fields such as trade, agricultural and irrigation and meteorology, and farmers’ organisations.
No room must be left for optimism in planning for disaster mitigation, and the country must always be ready for the worst-case scenario. In fact, the dry zone is already facing a severe water crisis, and the prevailing drought has caused widespread crop losses there. Reservoirs are drying up fast in those parts of the country while precipitation is high in some areas, especially in the central hills. El Niño is known to drive such extreme and erratic weather conditions.
The success of any strategy to mitigate the impact of El Niño or any other adverse weather or climate event hinges on timely anticipatory action, which alone can prepare a country for the impact of droughts, floods or heat waves on its public health and agriculture.
Experts have pointed out the steps Sri Lanka needs to take urgently in view of El Niño events. They include strengthening early-warning systems, adjusting planting dates and crop choice, promoting drought- and heat-tolerant crop varieties, improving irrigation efficiency, harvesting and storing more water, diversification of agriculture and rural incomes, and strengthening food storage and distribution systems. Why rainwater harvesting is not promoted in all parts of the country as a national priority is the question. It can help mitigate water issues to a considerable extent.
Meanwhile, a national strategy needs to be formulated to address the key factors that affect Sri Lanka’s agriculture sector and food security. They have been identified as adverse weather and climate shocks, low agricultural productivity, economic and forex constraints, high cost of production, disaster-related damage to food infrastructure, post-harvest losses and wildlife depredation. Sri Lanka is believed to lose roughly 20% to 30% of its fruits and vegetables after harvest, while wildlife is estimated to account for about 40% of annual crop damage.
Drought has already taken a heavy toll on food crops in the dry zone, with paddy bearing the brunt. Hence the government’s focus must be on maintaining buffer stocks of paddy. The current El Niño event is expected to continue into early 2027, but its effects will be felt even afterwards.
It defies comprehension why the government has allowed paddy/rice to be used for manufacturing animal feed and beer. Farmers’ demand for higher prices for their produce and a shortage of maize may have led the government to do so, but it should have heeded the warnings of a possible food shortage. Paddy production is bound to drop during the prevailing drought in the main rice producing areas affected by the prevailing drought, as it is highly water intensive, and therefore its diversion to animal feed or beer production must be stopped.
Editorial
Warning of power cuts: El Niño and corruption
Wednesday 26th August, 2026
The Public Utilities Commission of Sri Lanka (PUCSL) has warned of possible power cuts due to the prevailing El Niño phenomenon. It has said demand for electricity could rise steeply under the prevailing weather conditions, with power generation declining, if water levels in the hydropower reservoirs recede drastically. One may recall that long before the onset of El Niño, experts predicted that power cuts would have to be imposed as substandard coal stocks, procured allegedly in a fraudulent manner, had led to a generation shortfall at the Norochcholai coal-fired power complex. They also pointed out that it would not be feasible to increase the output of hydropower and oil-fired power plants indefinitely to compensate for the shortfall. But the government ignored expert opinion for political reasons. Going by the PUCSL warning, the situation has now come to a head, and the government is apparently left with no alternative but to impose power cuts.
Curiously, Director of the Water Management Secretariat of the Mahaweli Authority Nilantha Dhanapala sounded optimistic about reservoir water levels when he addressed the media the other day. He said the Mahaweli reservoirs were at 55% of capacity, with those used for hydropower generation and irrigation at 64% and 52%, respectively. Water levels in reservoirs under the Irrigation Department had reached 49% of capacity, he said, noting that the Mahaweli, Walawe and Kelani systems were at 54%, 57% and 93%, respectively. He described the overall reservoir levels as “good”. If so, why is the PUCSL so concerned about the major hydropower reservoir water levels to the extent of warning of possible power cuts?
As for the PUCSL warning, there are two possibilities. Either the picture is not as rosy as Dhanapala has made it out to be, and the government cannot sustain hydropower generation at the current level due to the impact of El Niño, or there is enough water in the hydropower reservoirs, as claimed, but the cost of running oil-fired power plants has become unbearable.
Prime Minister Dr. Harini Amarasuriya has recently informed Parliament that fuel import expenditure significantly increased during the first half of the current year, compared to the corresponding period in 2025. She has said that about USD 3,168 million was spent on fuel imports during the first six months of 2026, but fuel cost only USD 1,995 million during the first half of 2025.
Chairman of the Sectoral Oversight Committee on Infrastructure and Strategic Development, SJB MP S. M. Marikkar, has told Parliament, quoting from a PUCSL report, that due to substandard coal imports, Norochcholai was unable to generate about 300MW of power needed to meet electricity demand between Jan. 1 and June 30, 2026, resulting in additional expenditure of Rs. 8,536 million on oil-fired power generation to make up for the shortfall.
Instead of having the coal procurement scam under his watch probed urgently in keeping with his promise to ensure transparency and accountability, President Anura Kumara Dissanayake sought to obfuscate the issue by appointing a Presidential Commission of Inquiry to investigate coal procurement from 2009 to 2026. JVP General Secretary Tilvin Silva said in his May Day speech this year that the Presidential Commission would exonerate those from the NPP government of wrongdoing and find those from the opposition guilty. Subsequently, he apologised to the Commission for his remarks at issue, but they can be considered a Freudian slip that revealed the government’s real intention.
According to the Central Bank data, the massive increase in the country’s fuel bill is due to several key factors, such as a surge in international oil prices owing to the Iran conflict, higher import volumes, and higher expenditure on refined petroleum products. These are no doubt causative factors, but the fact remains that the shortfall in Norochcholai’s coal-fired power generation also forced the country to rely more heavily on costly oil-fired power generation, adding to its fuel import expenditure. The Ceylon Petroleum Corporation (CPC) admitted in April that it had bought three shipments of diesel between the last week of March and the second week of April at prices of between USD 288 and USD 281 per barrel. It did so following a revelation by HSBC Group’s CEO, Georges Elhedery, that the highest price he had seen paid for a barrel of oil was USD 286—and that it went to Sri Lanka. Critics claimed that the government had purchased those diesel shipments at extremely high prices because it was desperate to keep diesel-fired power plants running to make up for the drop in Norochcholai’s power output. The additional fuel used for operating oil-fired power plants to compensate for Norochcholai generation shortfall and its cost need to be estimated.
Power cuts are bound to take a heavy toll on the country’s economic recovery efforts. They could lead to lower production, higher costs, weaker exports, and ultimately slower economic recovery. There is no way the government can deny the fact that the questionable coal procurement deals have led to a shortfall in power generation, higher cost of electricity, increased tariffs and the prospect of power cuts.
Editorial
When people pay for political barnstorming
Tuesday 25th August, 2026
President Anura Kumara Dissanayake is scheduled to address a series of rallies across the country as part of a JVP/NPP reorganisation drive, according to media reports. A recent public opinion survey has indicated a sharp drop in the government’s approval rating, and this may have prompted the JVP/NPP to launch a grassroots campaign. The President’s nationwide speaking or barnstorming tour, on the cards, can be seen as an indication of the government limbering up for a possible referendum on the proposed 22nd Amendment to the Constitution. It can also be a show of strength.
Cabinet Spokesman and Minister Dr. Nalinda Jayatissa has dared Opposition politicians to take to the streets if they are capable of mobilising people against the government. We are reminded of the rhetoric of the big guns of the Mahinda Rajapaksa government following the 2010 general election. Prudence demands that a government take anti-incumbency sentiments into account and refrain from provoking its opponents into flexing their muscles. Street protests tend to snowball.
During successive governments, we have editorially highlighted the misuse of public funds by politicians, especially the Presidents, the Prime Ministers, Ministers and the Opposition Leaders, for their political campaigns. Some Presidents launched their re-election campaigns immediately after the commencement of their first term, dressing up their political campaigns as official events.
Presidential and prime ministerial travel costs the state coffers dear; it involves extraordinary security measures, which require the deployment of hundreds of police and armed forces personnel and scores of vehicles. All ministers rush wherever the President goes. They too travel with their security contingents at the expense of the public. The same applies to the Opposition Leader’s travel, albeit to a lesser degree.
The JVP raked President Mahinda Rajapaksa over the coals for traversing the length and breadth of the country either in his presidential limousine with a huge security convoy in tow or by helicopter to do political work. Anura Kumara Dissanayake, an Opposition MP at the time, demanded to know why Rajapaksa used two choppers, cynically asking whether the latter could change helicopters in midair in case of an emergency. His criticism of Rajapaksa struck a responsive chord with the public.
Former President Ranil Wickremesinghe was arrested and remanded over allegations that he misused state funds to cover travel and security expenses for what the CID has described as a private visit to the UK while in office. One wonders why the issue of the Presidents, the Prime Ministers and others using colossal amounts of state funds to cover their travel and security expenses during their political campaigns has gone unaddressed.
The JVP-NPP government was expected to curtail VIP travel. In the run-up to the 2024 general election, senior JVP/NPP politicians made a solemn pledge that under a JVP-NPP government, their MPs and ministers would travel in buses and trains as the ordinary public did, and auction the vehicles used by politicians during previous governments. But they are now moving about in luxury vehicles. Are they living by the Machiavellian axiom that promises need not be kept when circumstances change?
Some Presidents, Prime Ministers and Ministers have tried to pull the wool over the eyes of the public by paying for fuel used for their official vehicles during election campaigns, but fuel accounts for only a fraction of the costs borne by the public.
It is unbecoming of the self-proclaimed Marxist leaders who denounced the previous Presidents and Prime Ministers for using insanely expensive vehicles purchased with state funds to maintain the status quo. In 2018, Dissanayake made a hue and cry in Parliament about two bulletproof vehicles bought for the then Prime Minister Ranil Wickremesinghe’s use, at a staggering cost of Rs. 300 million each. He condemned that kind of expenditure as an utter waste of state funds. Now, “the 600-million-rupee question” is where those vehicles are. Are the incumbent government leaders using them?
One may recall that before the 2024 elections, the JVP/NPP leaders had the public believe that they would practise austerity a la Jose Mujica, who was the President of Uruguay from 2010 to 2015. Known as the world’s poorest President, Mujica, refused to move into the President’s House, and lived on a farm with his wife; his most notable asset was a 1987 Volkswagen Beetle. He donated his presidential salary and waited in queues with ordinary people in government hospitals, where he received treatment. He died last year. Sadly, as we argued in a previous comment, the only similarity one sees between the policies of the Mujica administration and those of the JVP-led NPP government is their lax attitude towards cannabis, of all things. Mujica legalised the recreational use of cannabis, and the JVP/NPP leaders have permitted the cultivation of cannabis for export.
It is high time the practice of political leaders using state funds for their political campaigns under one pretext or another was brought to an end. Let that be part of the “system change” the incumbent government promised.
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