(Excerpted from the memoirs of Senior DIG (Retd.) Edward Gunawardena)
A few months after the SLFP-led United Front Alliance headed by Mrs. Sirima Bandaranaike was elected in 1970, information started trickling in that the JVP was planning an uprising against the government. Cells were formed island-wide and clandestine indoctrination classes conducted by trained cadres. Simultaneously there was a spate of bank robberies and thefts of guns from households were reported to the police from all parts of the island. Unidentified youths were collecting empty cigarette and condensed milk tins, bottles, spent bulbs and cutting pieces of barbed wire from fences to make hand bombs and Molotov cocktails. Instances of bombs being tested even in the Peradeniya campus came to light.
By January 1971 the threat became real and the police began making arrests. Rohana Wijeweera, the leader of the movement, was arrested with an accomplice Kelly Senanayake at Amparai and detained at the Magazine prison. In the villages the common talk was that a ‘Che Guevera’ movement has started. Unknown youth moving about in villages were being referred to as ‘Che Gueveras.’ Police intelligence briefed the government of the developing ‘Naxalite’ like situation and action was taken to alert all police stations.
At the end of March 1971 there was specific information that the first targets would be the police stations. The attacks were to be carried out simultaneously on a particular day at a given time. With heightened police activity, the JVP ‘attack groups’ were pressurized to put their plan into effect hurriedly despite Wijeweera being incarcerated.
Synchronizing the attacks was a problem for the JVP. Mobile phones were not available then and the leaders had to resort to coded messages in newspapers. Police intelligence was able to crack their codes without much difficulty. It came to light that all police stations would come under attack at midnight on of April 5. The plan was to fire with guns at the station, and throw hand bombs and Molotov cocktails so that the policemen would run away or be killed. The attackers were to rush in and seize all the firearms in the stations.
The Police were ordered to be on full alert on this day. On April 4, in addition to my duties as the Director, Police Planning and Research I was acting for Mr. P. L. Munidasa, SP as the Personal Assistant to Mr.Stanley Senanayake the IGP. At about 4 p.m. an urgent radio message addressed to the IGP was opened by me. The message was alarming. The Wellawaya Police station had been attacked and the OIC Inspector Jayasekera had received gunshot injuries, a PC killed and several injured. The police had fought back bravely and not abandoned the station.
As soon as the IGP was informed, he reacted calmly. He summoned all the senior officers present at Headquarters briefed them and ordered that all police stations including the Field Force Headquarters, the Training School and Police Headquarters itself be placed on full alert with immediate effect. Among the officers present I distinctly remember DIGs S.S. Joseph and T.B. Werapitiya. All police officers irrespective of rank were to be armed and issued with adequate ammunition. This task was entrusted to ASP M.D. Perera of Field Force Headquarters who was in charge of the armoury. I too was issued with a Sterling Sub-machine gun.
During this time I was living in Battaramulla with my wife and year old child in my father’s house. My brothers, Owen and Aelian, who were unmarried were also living there. My wife and I with the child occupied a fairly large room in which an official telephone had been installed. We had decided to live here as I had started building a house on the same ancestral property; and it is in this house that we have lived since 1971. 1 had an official car, a new Austin A40 which I drove as I had not been able to find a suitable police driver. Apart from the telephone, I had a walkie-talkie and was in constant communication with the Police Command Room and the IGP.
On the night of April 4 as there was nothing significant happening except for radio messages from police stations asking for additional strength, weapons and ammunition, I was permitted by the IGP to get back home. I telephoned the Welikada and Talangama police stations and was informed that the stations were being guarded and the areas were quiet. At about 10 p.m. I reached home safely and slept soundly. But something strange happened which to date remains a mystery. At about 3.30 a.m. (on the April 5) my telephone rang. The caller in a very authoritative voice said, “This is Capt. Gajanayake from Temple Trees, the Prime Minister wants you immediately.”
I hurriedly got into my uniform and woke up my wife and told her about the call. Just then it occurred to me that I should call Temple Trees. There was an operations room already functioning there and Mr. Felix Dias Bandaranaike had taken control of the situation. When I called, it was answered by my friend and colleague Mr. Cyril Herath. He assured me that I was not required at Temple Trees and that there was no person there by the name of Capt. Gajanayake. Much against the wishes of my wife, my father and brothers, dressed in a sarong and shirt and armed with my revolver I walked down the road for about half a kilometer. But there was none on the road at that time of the night.
By next night disturbing messages were coming to Police Headquarters from all over the Island. A large number of police stations had been attacked and police officers killed and injured. SP Navaratnam and Inspector Thomasz had been shot at on the road in Elpitiya and the latter had succumbed to the injuries. A number of Estate Superintendents had been shot dead. Trees were cut and electricity posts brought down. Desperate messages were pouring in from several Districts stating that administration had come to a standstill. The Kegalle, Kurunegala, Galle and Anuradhapura Districts were the worst affected. The least damage was in areas where the police had taken the offensive. In Colombo although the police stations were not attacked there was panic. With the possibility of water mains being damaged tube wells were hurriedly sunk at Temple Trees. General Attygalle, the Army Commander, had taken over the security of the Prime Minister and Temple Trees.
Talangama Police station that policed Battaramulla was guarded by the people of the area. Even my brothers spent the nights there armed with my father’s shotgun. IP Terrence Perera who was shot dead by the JVP in 1987 was the OIC. The excellent reputation he had in the area made ordinary folk flock to the station and take up positions to defend it if it was attacked. Some of the people of Battaramulla who were regularly there whose names I can remember and who are still living are K.C. Perera, W.A.C. Perera, Jayasiri, Victor Henry, Lionel Caldera and P.P. de Silva among others. Incidentally Brigadier Prasanna de Silva one of the heroes of the recently concluded war against the LTTE is a son of P.P. de Silva.
There were also those who gave assistance in the form of food and drink for all those who had gone to the aid of the police. The late Edward Rupasinghe a prominent businessman of Battaramulla, supplied large quantities of bread and short eats from the Westown Bakery which he owned. However as the attacks on police stations and state property became more and more intense, the SP Nugegoda T.S. Bongso decided to close down the Talangama Police Station and withdraw all the officers to the Mirihana Headquarters Station. This move made it unsafe for me to live in Battaramulla and travel to Police Headquarters.
The late Mr. Tiny Seneviratne SP and his charming wife readily accommodated us in their official quarters at Keppetipola Mawatha. The late Mr. K.B. Ratnayake had also left his Anuradhapura residence to live with the Seneviratnes. KBR and Tiny were good friends. During this time in the midst of all the disheartening news from all directions there were a few bright spots I have not forgotten. These were messages from Amparai, Kurunegala and Mawanella.
At Amparai the ASP in charge A.S. Seneviratne on information received that a busload of armed insurgents were on the way to attack the police station in broad daylight had hurriedly evacuated the station and got men with arms to hide behind trees and bushes having placed a few dummy policemen near the reserve table that was visible as one entered the station. As the busload of insurgents turned into the police station premises a hail of gunfire had been directed at it. About 20 insurgents had been killed and the bus set ablaze.
In Kurunegala the Pothuhera police station had been overrun and occupied by insurgents. Mr. Leo Perera who was ASP Kurunegala had approached the station with a party in mufti unnoticed by the insurgents, taken them by surprise and shot six of them dead. The police station had been reestablished immediately after.
In Mawanella and Aranayake the insurgents held complete sway. Two youths had visited the house of a retired school master on the outskirts of Mawanella town and demanded his gun. He had gone in, and loaded his double barrel gun and come out on the pretext of handing it over to the two youths he had shot them both dead discharging both barrels. The schoolmaster and his family had taken their belongings, got into a lorry and immediately left the area.
With the joint operations Room at Temple Trees under Minister Felix Dias Bandaranaike assisted by the Service Chiefs, the IGP and several senior public servants functioning fully the offensive against the insurgents began to work successfully. Units from the Army, Navy and the Air Force were actively assisting the police in all parts of the Island particularly in making arrests. Helicopters with pilots provided by India and Pakistan were being extensively used by officials and senior officers of the Armed Services and the Police for urgent travel.
On the night of April 10 or 11, I had finished my work at Police Headquarters and returned at about 10 p.m. to Keppetipola Mawatha. During the day my wife had been able to find a police jeep to be sent to Battaramulla to fetch a substantial supply of jak fruits, manioc and coconuts from our garden. The Seneviratnes took immense pleasure in feeding all and sundry who visited their home.
At about 10 p.m. I received a call from the IGP requesting me to take over Kurunegala Division the following morning. He told me that a helicopter would be ready for me at Parsons Road Air Force Grounds at 5.30 a.m. According to him the insurgents were still active in the area; the SP Mr. A. Mahendran was on sick leave and Mr. Leo Perera ASP was bravely handling the situation almost single handed. Although the assignment did not bother me much, my wife was noticeably concerned. Mrs. Seneviratne an ardent Catholic gave me a miniature medal of St. Anthony assuring me that the Saint will protect me from harm.
The helicopter took off at the crack of dawn. It was piloted by a young Flt.. Lieutenant from the SLAF and I was the only passenger. I have forgotten the name of this pilot. He was a pleasant guy who kept conversing with me all the way. He told me that he had flown to Anuradhapura and Deniyaya the previous day and in both those areas the insurgents were on the run and the security forces were on top.
Having been cloistered at Police Headquarters always peeking out of windows with a weapon in the ready or reading messages of deaths of police officers and the successes of insurgents, a feeling of relief overtook me on the flight. In fact I began to look forward to some action and this did not take long to come.
As the helicopter landed I was met by ASP Leo Perera who was a contemporary of mine at Peradeniya. There were several other police officers and also two officers of the Air Force. The latter were there to go to Colombo in the same aircraft. I carried only a travel bag with the minimum of clothes.
My first task was to address the officers gathered at the Police Station. I praised them for facing the situation bravely. Their only complaint was that they were short of ammunition. I suggested to Leo that as far as possible shotguns be used instead of 303 rifles. An officer was dispatched immediately to get as many guns as possible from the Kachcheri and the production room of the court house.
ASP M.D. Perera of Field Force Headquarters who was contacted on radio undertook to airlift 15 boxes of SG and No. four 12-bore cartridges. All the officers present were pleased as they all agreed that shotguns were more effective. The families of police officers too had left their quarters and barracks and taken up residence in different sections of the station. Most importantly their morale was high. Leo Perera had led them admirably.
At about 10 a.m. after partaking of a kiribath and lunumiris breakfast with the men I left for my office, that of the SP Kurunegala. I was very happy when Inspector Subramaniam was assigned to me. He was known to me and he appeared to be pleased with the task. He was a loyal and cheerful type. I chose a Land Rover with a removable canvas top for my use and also a sergeant and two constables with rifles. Subramaniam and I had Sterling sub-machine guns. These officers were to be with me at all times. In the afternoon I was able to obtain two double barrel Webley & Scott shotguns with about 10 No. four cartridges. There were several beds also already in place in the office. Telephoning my wife was no problem as I enjoyed the privilege of priority calls.
I had lunch with Inspector Subramaniam and my escort in the office. The rice and curry lunch had been sent from the Police Station mess. After a late lunch and a brief post lunch rest the four of us dressed in mufti set off in the Land Rover driven by a police driver. IP Subramaniam carried a Stirling sub-machine gun and the sergeant and PC 303 rifles. A loaded double barrel gun lay on the floor board of the Land Rover. After visiting the Potuhera and Mawathagama stations and patrolling the town area we returned to our base. Subramaniam also made arrangements with a boutique in town for some egg hoppers to be delivered to us at 8 p.m.
A little excitement was to come soon. After refreshing ourselves and having eaten the egg hoppers we visited the station. At about 9.45 p.m. I was having a discussion with a few officers in the office of the OIC Crimes when we heard two minor explosions and somebody screaming that the station was being attacked. Armed officers took up positions according to instructions. I ordered that the station lights be put off. An Inspector armed with a loaded shotgun, a few constables and I crawled to the rear of the building. Bombs were being thrown from the direction of a clump of plantain trees. A small tin with the fuse still burning fell close to where we were.
A PC jumped forward and doused the fuse throwing a wet gunny bag on the object. Two more similar objects fell thrown from the same direction. The same PC rushed forward and removed the burning fuses with his hands. As the objects were coming from about the identical place, I grabbed the shotgun and discharged both barrels in that direction simultaneously. The ‘bombing’ stopped thereafter. Two armed mobile patrols were sent out to the roads to look for any suspects. But the roads were empty. At about 11 p.m. the lights were put on and the station resumed its activities.
To say the least these ‘bombs’ were crude and primitive. In each of these we found a large ‘batta’ cracker the fuse of which came out of a hole in the lid of a cigarette tin. Round the ‘batta’ was a layer of tightly compressed fibres akin to the fibres in a squirrels nest. On the outer side of the compressed fibre were barbs cut off barbed wire and rusted nails. A thousand of such ‘bombs’ could not have matched the destructive force of a modern hand grenade. This state of unpreparedness was perhaps the foremost reason why the insurrection fizzled out early.
More action was to follow that same night. After my escort of three officers and I had retired to bed in the SP’s office, a few minutes after midnight the Sergeant guarding a large transformer on the Wariyapola Road with two other constables started calling me on the walkie talkie in a desperate tone. He sounded very excited and told me that shots were being heard close to the guard point. I instructed him to take up position a reasonable distance away from the transformer where there were no lights and shoot at sight any person or persons approaching the transformer. I also assured him that I would be at the guard post with an armed party in the quickest possible time.
IP Subramaniam and the other two officers were eager to join me. I got the driver to remove the hood cloth of the Land Rover. Whilst the sergeant who was armed with a rifle occupied the front seat alongside the driver, Subramaniam and I armed with two double barrel guns loaded with No. four cartridges took up a standing position with the guns resting on the first bar of the hood. The two PCs were to observe either side of the road. Prior to leaving I radioed the Police station to inform the Airforce operations room about my movements and not to have any foot patrols in the vicinity of the transformer.
There were no vehicles or any pedestrians on the way to the transformer. About a hundred meters to go we noticed a group of about eight to 10 dressed in shorts getting on to the road from the shrub. The distance was about 50 to 75 meters. The driver instinctively slowed down. The shining butts of two to three guns made us react instantly. I whispered to Subramaniam when I say ‘Fire’ to pull both triggers one after the other. We fired simultaneously and the Sergeant and PCs also fired their rifles.
Once the smoke cleared we noticed that the group had vanished.
As we approached the spot with the headlights on we noticed three shot guns scattered about the place. On closer examination there was blood all over and a man lay fallen groaning in pain. Beside him was a cloth bag which contained six cigarette tin hand bombs. Two live cartridges were also found. In two of the guns the spent cartridges were stuck as the ejectors were not working. The other gun was loaded with a ball cartridge which had not been fired. Having collected the guns, the bag containing the bombs and some rubber slippers that had been left behind. We proceeded on our mission to the transformer having radioed the guard Sergeant that we were close by.
As we approached the transformer the Guard Sergeant and the 2 PCs came out of the darkness to greet us. They were visibly relieved. But when the Sergeant told us that several shots were heard even 15 minutes before we arrived, I explained to them what had happened on the way. The Sergeant’s immediate response was, “They must be the rascals who were hovering about the village. They are some rowdies from outside this area who are pretending to be Che Guevaras”.
After reassuring them we left. On the way we stopped at the place where the shooting occurred. The man who was on the ground groaning in pain was not there.
Having snatched a couple of hours of sleep, at about 9 a.m. I drove with the escort to the Kurunegala Convent to call on the Co-ordinating officer Wing Commander Weeratne. A charming man, he received me cordially. He looked completely relaxed, dressed only in a shirt and sarong. He introduced me to several other senior officers of the Airforce and Army who were billeted in that spacious rectangular hall. One of the officers to whom I was introduced was Major Tony Gabriel the eminent cancer surgeon. A volunteer, he had been mobilized. I was also told that a bed was reserved for me. But I politely told him that I preferred to operate from my office. Wing Commander Weeratne also told me that he would be leaving to Colombo on the following day and the arrangement approved by Temple Trees was for the SP to act whenever the Co-ordinating officer was out of Kurunegala.
I joined the Co-ordinating officer and others at breakfast – string hoppers, kirihodi and pol sambol and left for the Police Station soon after. The escort was also well looked after. Weeratne and Tony Gabriel became good friends of mine. Sadly they are both not among the living today. After the meeting with the Co-ordinating officer we visited the Potuhera Police Station. Blood stains were clearly visible still and the walls and furniture were riddled with bullet and pellet marks. The officers looked cheerful and well settled. They were all full of praise for the exemplary courage shown by ASP Leo Perera in destroying the insurgents and other riffraff who were occupying the station and for re-establishing it quickly. One officer even went to the extent of suggesting that a brass plaque be installed mentioning the feat of Mr. Leo Perera.
When we returned to Kurunegala the officers were having lunch at the Station. The time was about 1.30 p.m. We too joined. Leo Perera was also there. He had tried several times to look me up but had failed. I complimented him for the excellent work done and told him that the high morale of the Kurunegala police was solely due to his leadership. He smiled in acknowledgment. But I noticed that he was not all that happy. He had a worried look on his face.
At about this time a serious incident had taken place giving the indication that insurgents were still active in the area. An Aiforce platoon (flight) on a recce in the outskirts of the town had come across a group of insurgents in a wooded area. The surprised group had surrendered with a few shot guns. An airman noticing one stray insurgent who was taking cover behind a bush had challenged him to surrender. The insurgent had instantly fired a shot at the airman who had dropped dead. The attacker had been shot dead in return by another airman.
At about 3 p.m. an Airforce vehicle drew up at the police station with a load of nine young men who had been arrested. They had deposited the two dead bodies at the hospital mortuary. All those under arrest were boys in their teens dressed in blue shorts and shirts. They had all been badly beaten up. I cautioned the airmen not to beat them further and took them into police custody. They had bleeding wounds which were washed and attended to by several policemen as they were all innocent looking children.
On questioning they confessed that they were retreating from the Warakapola area and their destination was the Ritigala jungles in Anuradhapura. They had these instructions from their high command. At this time, as if from nowhere appeared two young foreign journalists, a man and a woman. One was from the Washington Post and the other, the young woman from the Christian Science Monitor. Apart from taking photographs they too asked various questions.
The boys had their mouths and teeth were badly stained. They had been chewing tender leaves to get over their hunger. According to them they had been taught various ways to survive in the jungle. They had been told to eat apart from fruits and berries and tender leaves even creatures such as lizards and snakes; and insects particularly termites and earthworms. The nine young men were provided bathing facilities and a meal of buns and plantains; and locked up with about five more insurgent suspects to be sent to the rehabilitation camp that had been established at the Sri Jayawardenapura University premises. This was to be done on the following day in a hired van under a police escort.
At the police station I received a call from the Wariyapola police to say that six young men with gunshot injuries had got admitted to the Wariyapola hospital. They had told the police that they had been shot by a group of insurgents on the Wariyapola-Kurunegala road and had been able to reach the hospital in the trailer of a hand tractor. I immediately guessed that they could be the insurgents who were shot near the transformer. I explained to the OIC Wariyapola that they were a group of insurgents and to keep them in police custody.
In the evening I received a call from the IGP that he would be arriving in Kurunegala at 8 a.m. accompanied by General Attygalle. He told me that they wanted to have a chat with Leo Perera. I immediately informed Leo and told him to remain in office or at the Police Station in the morning.
By that time I had come to know that several Kurunegala SLFP lawyers had made some serious complaints against the ASP. Leo having received credible information that some of these lawyers were in league with insurgent leaders had not only questioned and cautioned them but even got their houses searched. One special reason for these lawyers to be aggrieved was because three of the insurgents shot dead by Leo when he recaptured the Potuhera Police Station had been local criminals who had been associating closely with them.
When the IGP arrived with the General I met them and brought them to my office. Wing Commander Weeratne, the Co-ordinating officer was also present to meet them. He had made arrangements for an armed escort of airmen to accompany the IGP and the General wherever they went. The undisclosed mission of the two top men was to take Leo back to Colombo with them. The IGP had been pressurized by Minister Felix Dias Bandaranaike to transfer the ASP, but the IGP had decided not to displease and discourage a young officer by making him feel that he had been punished. The IGP was more than conscious of the fact that the ASP had done an excellent job in quelling the insurgency in the Kurunegala District.
Leo was in my office. He was cheerful, calm and collected. The IGP and General Attygalle spoke to him cordially. Over a cup of tea the four of us discussed the happenings in the country. After a few minutes the General turned to Leo and said, “Leo, you have been working very hard. You need some rest and you must come along with us to Colombo”. Leo smiled, looked down and calmly responded, “Sir, thank you for the compliment, but let me say that this is not the time to rest, there’s plenty of work to be done”. He then went on to explain the underhand manner in which three lawyers, mentioning their names, who pretended to be great supporters of the government were acting. He went on to emphasize that he even had proof how they were hand in glove with insurgents and local criminals.
The IGP and Attygalle were conspicuously silent. After a few moments Leo spoke again. He said: ” If I come with you now, all these rascals will think that I was arrested and taken to Colombo. I will come to Police Headquarters on my own. Shall drive down this afternoon”.
Soon after the IGP and General Attygalle had left, at about 11 a.m. a high level team of investigators arrived from Colombo. This team consisted of Kenneth Seveniratne, Director of Public Prosecutions; Francis Pietersz, Director of Establishments and Cyril Herath, Director of Intelligence. Their mission was to carry out a general investigation into the happenings in Kurunegala. They were all my friends; my task was to give them whatever assistance they required. They were billeted with the Airforce and worked mainly from my office. They visited several places including the Kurunegala, Potuhera and Mawathagama police stations; and the Rest House which had been the meeting place and ‘watering hole’ of some of the lawyers during the height of the troubles. Many lawyers and several police officers were also questioned by them. They completed their assignment after about a week and left for Colombo.
Significantly they had not been able to find evidence of any wrongdoing by ASP Leo Perera. Before long I too was recalled to Colombo and asked to resume duties as the Director of Police Planning & Research. From this position too I was able to make useful contributions to the rehabilitation effort and particularly the fair and equitable distribution of the Terrorist Victim’s Fund.
Twenty-five years of private sector-led renewable energy development
by Dr Tilak Siyambalapitiya
A policy change in 1995 to allow private investments in electricity generation into the grid, a standard agreement and a standard price for electricity produced, enabled such investments to pick-up faster than in other countries. The first mini-hydro power project with entirely private sector funding and private ownership commenced operations in May 1996.
The agreement and the price
Dubbed the “most investor friendly agreement in the world”, Sri Lanka’s renewable energy developers were offered, since 1996, a non-negotiable 15-year agreement (20-years for projects signed after 2008). The agreement says, literally, “I will buy all your electricity produced for the next 15 years, any day any time; I will not penalize you for delays in your project or for not producing electricity at all or producing less electricity than you promised; I will not ask you to start or stop your power plant”. There is no other agreement in the business world 25 years ago or now, where such agreements are offered to a seller.
Then the price. The agreement carries a price, which too is not negotiable. It says: “I will pay you a price that reflects the fuel saved in major power plants; in case fuel prices go down, I will not drop the price below 90% of the price when you signed; if the fuel prices go up, I will keep on increasing the prices without any limit”.
I shall buy all your all your product at the following price for 20 years. If you do not produce too, even when I need it badly, I will only greet you with a smile !
Government procurements have to be on competitive basis. This policy of competition was further reinforced by the Electricity Act 2009, required to be implemented by the Public Utilities Commission (PUCSL). The legal validity of such renewable energy agreements and price offers, that make a mockery of rules of “competition”, has been debated in many quarters over the past 25 years.
Has it been good ?
Well, yes and no, depending on whom you speak to and your convictions. To the credit of the program, Sri Lanka’s renewable energy development accelerated after 1996. These are smaller power plants using hydropower, wind, wood and more recently, waste. If the government attempted to develop them through a state entity, excessive overheads and inefficiency would most likely creep-in. There would have been a politically appointed Chairman and a fleet of vehicles going up and down, to run a tiny minihydro.
On the other hand, had the state rigidly controlled what is developed and where, renewable energy projects developed would have been more efficient, well-engineered and certainly more environment friendly. Stories are many, where a private mini-hydro project agreed with the Central Environmental Authority to release water for downstream users, but later blocked it 100%. As the saying goes, “Sri Lanka’s streams and rivers are now flowing in tubes”, but we are proud about a vibrant renewable energy industry !
Renewable energy from such smaller private investments reached 1% of total in year 2000 and 4% by 2006. Buoyed by another policy change in 2007 that offered a contract for 20 years and an even more attractive prices, renewable energy from small power plants raced toward a 10% policy target for 2015. It reached the target indeed, with 11% of electricity produced in 2015 from the combined production in 147 minihydros, 15 wind and 3 each of grown biomass, wood waste and solar parks. Unlike many countries who make headlines by stating their renewable energy contribution in megawatt, Sri Lanka’s targets and achievement are stated in kilowatthour, honestly reflecting the true benefits to save fuel and to reduce emissions.
Continuing its race for development, by 2020 (provisional figures) electricity produced from smaller private renewable energy power plants reached 12%. Adding major hydros, the energy share from all renewable energy was 37% by 2020, a share unmatched by all countries and expatriate Sri Lankans that preach Sri Lanka on how to develop renewable energy.
Has the price been good to the investor?
The policy of paying renewable energy projects signed over 1996-2016 was to pay the value of fuel saved in the grid, calculated and published in advance every year. Agreements signed after 2007 enjoy an even more attractive pricing formula: a technology-specific, cost-reflective price. That means minihydros are paid a price to make that a profitable investment; wind power is paid to make that technology, a profitable investment.
Once signed, price paid does not change. If costs go up or down after signing, or bank interest rates go up or down, the price remains the same. Fortunately for all who signed in 2008-2009 or later, equipment costs and bank interest rates both have been on a downward trend. Projects that borrowed at 18% in 2018 possibly borrowed at 8% this year, but still enjoy the price paid calculated at 18% interest. By way of equipment costs, solar power has seen the deepest reduction in costs. More on that later.
What was the benefit to the public?
Why did the government offer such attractive rates and terms to private investors? Sri Lanka did not throw Rs 10 at renewable energy investors and say “do it if you can”. The key principle in the pricing policy was: price paid makes investments profitable (not just profitable but excessively profitable). The agreement still remains the “most investor friendly agreement” in the world.
In other words, the public of this country, through their electricity bills and through taxes, have paid for the investments, bank interest, and profits (above market rates), to make privately-owned renewable energy an excessively profitable venture. Other benefits of renewable energy need not be repeated here; they are all well known. So what is the benefit to the public who fully paid (and continue to pay) for these investments, of which the ownership is private?
It should be the longer-term benefit of cheaper renewable energy. That’s why the 2008 announcement on the revised policy said as follows: “Renewable energy, which is a natural resource, belongs to the State. Developers are provided with a high tariff to cover their expenses and to earn reasonable profits for an adequately long period (in this case the first fifteen years). Thereafter, the benefit of the resource should flow to the electricity customers, while continuing to provide an operating fee to the small power producers and full recovery of maintenance costs”.
The closest example is the CEB-owned fleet of hydropower plants, which are bigger. The familiar ones are Laxapana, Kotmale and Victoria, among a total of 15 power plants. The public of the country paid for those too, starting from 1950. How? Through electricity bills (because loans and government investments were apportioned between CEB and Mahaweli Authority), taxes and benefits foregone. The major hydros today produce at a cost of Rs 3.35 per unit of electricity. True, that except for Upper Kotmale, all are 20 years or more of age. The fleet of minihydros, too, as they mature into their contracts, after 15 years of good profits to investors, should deliver benefits to electricity customers. That’s why the 2008 announcement said: Therefore, once the developers’ costs and profits are paid, it is inevitable that in the long-term, renewable energy should flow into the national grid at prices significantly lower than the cost of thermal energy.
However, information published indicates that the principles on which small power producers were enabled in 1996 and then enhanced in 2008, are indeed being followed. CEB produces electricity from mature hydros at Rs 3.35 per unit (PUCSL assessment 2019). The price for mature hydropower in the private sector was Rs 5.38 per unit (CEB publication 2019), precisely following the principle of fairness: good profits to investor for 15 years, benefits to electricity customer in the longer term.
As more and more minihydros mature, later wind, biomass and solar projects mature, we should be seeing finally, that ALL renewables produce electricity at prices very significantly lower than all the alternatives. Renewables replace thermal power and we should be paid the same price, will not be an argument, now or then, or in the future. “My power plant is not so good, it does not have water, is not an argument”, because no one defined where to build the minihydro; the investor selected it.
The argument that private renewables can produce below the price of oil, gas or coal does not hold, then, now or in the future. Renewables were allowed because fossil fuels were expensive and bad. The price of fossil fuels comprise royalties, production and delivery costs. If one needs a comparison, royalties for renewables have to be paid to the “republic” (the treasury) and production costs paid by electricity customers. Since royalties are not charged for renewables, both CEB and private, then renewable energy prices should be compared only with production costs. The investment has already been fully paid by the republic.
I conclude with a quotation from the 2008 announcement: “Small power producers opting not to migrate to the new agreement by 30th April 2008, will be offered the tier 3 tariff announced for the relevant technology in the year in which the existing agreement expires, after its full tenure of 15 years is completed”. That means, retiring minihydros should be offered prices in the range of Rs 6 per unit.
It is yet to be seen whether the PUCSL and consumer rights groups are willing to fully and comprehensively understand the issue, step-in, and ensure that “renewable energy belongs to the republic”, as stated in the Sri Lanka Sustainable Energy Authority Act 2007.
The country’s streams are now flowing in tubes, but do benefits flow to the public who have fully paid the investors with profits?
Danger of disregarding Geopolitical Realities
Negotiating Agreements for Foreign Investments:
By Dr. S.W. Premaratne
Foreign Policy decision-maker, of a state, have to take into consideration the prevailing geopolitical environment of the international system, and of the region concerned, at a given time, when there is a foreign policy aspect involved in the decision that has to be taken regarding any issue Omission, or failure to give consideration to this aspect of the issue, can lead to disastrous consequences. Several examples from the recent political history of Sri Lanka can be given to illustrate this point.
Sri Lanka’s conduct of foreign policy, in the 1980s, is a clear example of the serious consequences of ignoring India’s concerns regarding Sri Lanka’s pro-West tilt in its foreign policy. Sri Lanka’s declared policy was non-alignment in maintaining relations with other states, specially the Big Powers in the West and the East. However, the J.R. Jayewardene government, that came to power, in 1977, sought to develop a closer relationship with the Western countries, led by the USA. The nature of the interactions between the diplomats of the USA and Sri Lanka, at the time, had given the impression to India that Sri Lanka was seeking the assistance of the USA for suppressing the Tamil militant movement in Sri Lank, fighting for the rights of the Tamil community. There were also reasons for India to suspect that there was an understanding between the Sri Lankan Government and the USA to allow the Trincomalee harbour to be used by the USA. It was this perception of India that Sri Lanka was following an anti-India foreign policy, endangering the security of India that motivated India to intervene militarily in the year 1987 to thwart the progress of the Vadamarachchi operation, aimed at militarily defeating the Tamil militant movement.
After aborting the progress of the Vadamarachchi operatio, the Indian government proceeded to compel the Sri Lankan Government to sign an Agreement – the Indo-Sri Lanka Accord of July 1987 – to ensure that Sri Lanka respected India’s security concerns and other interests when seeking assistance from outside Powers for Sri Lanka’s economic development or national security.
India’s concerns regarding China’s excessive involvement in Sri Lanka’s development projects
Sri Lanka’s political leaders and diplomats, whenever they get an opportunity, express their affection for their Big Brother, India, and express the need for further strengthening the friendship for the mutual benefit of both countries. India’s perception, however, is that, especially after the change of government in 2005, there is an evolving special relationship between Sri Lanka and China posing a serious threat to the national security of India.
Sri Lanka felt intensely isolated from the international community after adopting the Resolution A/HRC/46/L. Rev. 1 against Sri Lanka, at the UNHRC, in Geneva, in March, 2021, especially because India also decided to support the core-group indirectly by abstaining from voting.
The only consolation for Sri Lanka now is China’s expression of willingness to further strengthen its strategic relationship with Sri Lanka by extending further development assistance to Sri Lanka, within the framework of the Belt end Road Initiative. Subsequent to a telephone conversation between the two leaders, the President of China and the President of Sri Lanka, in a statement issued by the Chinese Embassy in Colombo, on March 30, 2021, it was stated that “China attaches great importance to the development of bilateral ties and stands ready to work with Sri Lanka to determine the strategic direction and achieve steady growth of the relationship. China stands ready to steadily push forward major projects, like the Colombo Port City and the Hambantota Port, and promote high quality Belt and Road Co-operation, providing robust impetus for Sri Lanka’s post pandemic economic recovery and sustainable development”. China projecting Sri Lanka as an intimate partner of the Belt and Road strategy indicates that Sri Lanka is distancing itself from the path of non-alignment and adopting an anti-Western and anti-India approach.
In the matter of obtaining foreign investments for development projects, Sri Lanka has failed to foresee the foreign policy implications of overreliance on China. The two massive development projects, initiated during the Mahinda Rajapaksa administration, which came to power in 2005, were the Hambantota sea port and the Port City Project in Colombo. The amount of money invested for these two projects, by China, was so massive that Sri Lanka happened to sign an agreement for permitting the management and control of the Hambantota Port by the state-controlled company of China, under a 99-year lease agreement. The Management and control of the Colombo Port City area also has been granted to the Chinese construction company, under a 99-year lease agreement. Not only India, but also the USA and other Western countries have expressed serious concern regarding the involvement of China in strategically significant massive development projects in Sri Lanka. India’s perception now is that Sri Lanka is an aircraft carrier of China, stationed in the Indian Ocean, close to India. Hambantota Port is viewed as another pearl in the string of pearls maintained for containing India by China.
India is also concerned over the lack of interest on the part of the Sri Lankan Government to go ahead with the development projects regarding which agreement had been reached with India, during the Sirisena-Wickremasinghe coalition government. In May, 2019, a Memorandum of Understanding was signed by the Sri Lanka Ports Authority (SLPA), Japan and India proposing the development of the East Container Terminal jointly, Sri Lanka and Ports Authority retaining 51 percent shares. However, the present Government deviated from that understanding and decided to nominate one Indian investor, Adani Group, disregarding Japan. But, the attempt of the Sri Lankan Government to involve the Indian Company in this project by offering 49 percent of the shares of the ECT was thwarted by the trade union action of the port workers, supported by an influential section of the Buddhist priests and also a section of the ruling alliance. The Sri Lankan government had no alternative but to respond to the demand of the trade unions by getting the Cabinet approval for developing the ECT only by the Colombo Port Authority, without involving India or Japan.
India has also expressed concern over the attitude of the Sri Lankan Government concerning the development and management of the Trincomalee oil tank farm. The lower farm has been managed jointly by the Ceylon Petroleum Corporation (CPC) and the Indian Oil Corporation (IOC) via Lanka IOC Private Limited. The 2003 tripartite agreement signed by the Sri Lankan Government, LIOC and the CPC covers the entire tank farm. India is now concerned about the excessive delay in granting the Sri Lankan Government’s approval for commencing the development of the Upper Tank Farm, comprising 84 tanks.
Another joint venture, regarding which Sri Lanka sought the involvement of India’s Petronet LNG Ltd. Company, and also a Japanese investor, was the proposed liquefied natural gas LNG terminal that was to be set up near Colombo. Although Indian and Japanese Investors had indicated their willingness to join this project, as partners, the Sri Lankan Government has not yet given its final approval for commencing the construction work.
India is also very much concerned over the lack of progress in the reconciliation process initiated after the end of the war. India’s concern in this regard was expressed very effectively and in very clear language in a statement made by the Indian Foreign Minister Jaishankar in the course of a media conference during his two-day visit to Sri Lanka in January, this year. In his statement the Indian Foreign Minister said: “As we promote peace and wellbeing in the region, India has been strongly committed to the unity stability and territorial integrity of Sri Lanka. Our support for the reconciliation process in Sri Lanka is long standing as indeed for an inclusive political outlook that encourages ethnic harmony. It is in Sri Lanka’s own interest that the expectations of the Tamil people for equality, justice, peace and dignity, within a united Sri Lanka, are fulfilled. That applies equally to the commitments made by the Sri Lankan Government on meaningful devolution, including the 13th Amendment to the Constitution”.
Sri Lanka should not consider that India’s interest and involvement in the post-war reconciliation process as a case of a foreign country intervening in the internal affairs of Sri Lanka illegally. India is guided by a mindset that there is a moral responsibility on her part to intervene and bring about a final settlement to the conflict in Sri Lanka.
Colombo Port City Economic Commission
Colombo Port City Economic Commission Bill which was challenged in the Supreme Court, purported to establish an Economic Commission for the administration of the Port City, built by a construction company of the Chinese Government, adjacent to the Colombo Port. This Bill seeks to grant extensive powers to an institution called the Colombo Port Economic Commission, whose members will be appointed by the President of Sri Lanka. According to the provisions in the Bill, the supervisory power of the Parliament of Sri Lanka has been excluded, both regarding the manner of exercising the powers granted by the proposed legislation to the Commission, and also regarding the selection of persons to be appointed as members of the Commission.
Moreover, regarding the activities that take place within the Colombo Port City area, some institutions of the Government of Sri Lanka are excluded from exercising their authority. Dr. Wijedasa Rajapaksa, in his written submissions submitted to the Supreme Court, in connection with the petition filed challenging the Bill, makes specific reference to the Customs Ordinance. He gives the warning that there may be importation of prohibited substances such as drugs, weapons, etc. He points out that in the event of any violation of International Treaties and Conventions, within the Port City area, it is not the Commission but the Sri Lankan Government that is responsible.
In view of the intense power struggle between China on the one hand and India and other partners of the Quad, led by the USA on the other hand, for dominance in the Indian Ocean area, the Parliament of Sri Lanka passing legislation for permitting such a high degree of autonomy to an administrative authority that can be controlled by the Chinese government will be considered by India as a serious threat to its security. This pro-China foreign policy orientation will also be an obstacle for Sri Lanka to promote friendly relations with democratic countries in the West determined to thwart Chinese domination in the Indian Ocean region.
The Philippines and SL combine
Singer Suzi Croner (Fluckiger), who was a big hit in this part of the world, singing with the group Friends, continues to make her presence felt on TNGlive – the platform, on social media, that promotes talent from all corners of the globe.
She made her third appearance, last Saturday, May 1st, but this time she had for company Sean, from the Philippines, who, incidentally, was in the finals of The Voice of Switzerland 2020.
Their repertoire, for TNGlive, on the evening of May 1st, including hit songs, like ‘Something Stupid,’ ‘Let Your Love Flow,’ (Sean), ‘If You Can’t Give Me Love,’ ‘Your Man,’ (Sean), ‘Crazy,’ ‘Great Pretender,’ (Sean), ‘Amazing,’ and ‘Stand By Me.’
It was a very entertaining programme, and Sean certainly did prove why he needed to be a finalist at the prestigious The Voice of Switzerland 2020.
You can take in the TNGlive scene, on a regular basis, by joining the Public Group TNGlive, on social media (Facebook).
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