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Editorial

A sinister move

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Saturday 10th July, 2021

A sinister attempt is being made in certain quarters to trigger a run on banks if some social media posts are anything to go by. Several self-appointed financial experts have urged the public to withdraw their money in local banks immediately as there is the likelihood of all accounts being frozen. Thankfully, their efforts have not yielded the intended results because the public has not taken their claim seriously. This may be the reason why the government has not reacted yet, but there is no guarantee that the people will continue to act rationally.

The Sri Lankan public is literate but notorious for whipping itself into collective hysteria, and, therefore those who are striving to cause a bank run might succeed in their endeavour. It may be recalled that there have been several instances of people responding to false tsunami alarms and running away. They no longer panic in that manner because reliable information about seaquakes is made available to them. Some years ago, thousands of people gathered near Buddha statues, believing in a rumour that rays were emanating from them. Then there was the much-publicised claim that juice made from the leaves of a certain fruit tree was a surefire cure for dengue. Many were the poor dengue patients who were made to swallow it, but their recovery was due to medical science. Hundreds of thousands of Sri Lankans fell for a carpenter turned native physician’s claim that he had found a cure for Covid-19 with the help of a goddess. Among them were the Health Minister, the Speaker of Parliament, several Cabinet ministers, and even some doctors. A national university granted the herbal concoction ethical clearance, and the quack made a killing. He is no longer in the news.

The public recently fell hook, line and sinker for a social media claim, and resorted to panic buying of salt in the aftermath of the X-Press Pearl disaster. That was their reaction to someone’s warning that there would be a shortage of salt. Now, the people have stocked up salt sufficient for many more months!

Thus, it may be seen that the attempts being made on social media to cause mass withdrawals from banks should not be taken lightly. The disruptive netizens base their claims about the banking system, on the condition of the national economy. Some independent economists have assessed the situation dispassionately and accurately, but their views are not widely known to the ordinary people, who know only what the ruling party politicians and their Opposition counterparts say about the economy.

Both the government and doomsayers are not telling the truth about the country’s economic situation. The latter would have the public believe that the collapse of the economy is imminent, and the former is making light of the situation. The truth is equidistant from these two extreme positions; the economy is in bad shape, but it can be revived if a serious attempt is made.

As for the irresponsible members of the public and the anarchical elements who love chaos, social media have become something like a straight razor in the hands of a mad monkey. They are all out to dupe the people, most of whom easily work themselves up into a lather. Social media have also become a weapon for certain external forces bent on destabilising countries, as evident from the manner in which the Arab Spring was engineered with leaderless mass protests sweeping across some states. The Arab Spring has turned out to be a winter of despair.

It is hoped that some decisive official action will be taken to counter the false claims being made on social media about the local banking system. What needs to be done is to educate the public on the real economic situation and the action being taken to overcome the problem, so as to allay their fears, before it is too late.



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Editorial

Tea snapshot

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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.

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Editorial

Fish or cut bait!

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Saturday 3rd June, 2023

Long lines of vehicles were seen near filling stations yesterday as well, and it may be a couple of days before the situation is brought under control. Minister of Power and Energy Kanchana Wijesekera has threatened tough action against the fuel stations that did not maintain adequate stocks due to speculation about fuel price reductions. But the government’s bark is worse than its bite.

Worryingly, the country is experiencing a crippling fuel shortage while the GCE O/L examination is on. About 472,500 candidates are sitting it at 3,568 centres. More than 35,000 persons, mostly teachers, are reportedly on examination duty. The government apparently has no concern for these students.

Ruling party politicians bellow rhetoric, but fuel station owners always have the last laugh, for most of them have political connections. They do not place orders for fuel if they get wind of possible downward price revisions in a bid to avoid losses but make a killing when fuel prices are increased. Thus, they have the best of both worlds at the expense of their customers, who have to grin and bear it.

The Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Ltd., would continue fuel distribution over the weekend as well, Minister Wijesekera said on Friday. The need for such measures would not have arisen if the government had acted wisely. An increase in the petroleum sector overtime bill will cost the state coffers dear, and its losses will be passed on to the public.

The government should have known better than to increase the fuel quota on the eve of price revisions, without taking steps to ensure that fuel would be freely available for a steep increase in the demand to be met. It couldn’t have been unaware that the easing of fuel rationing, and price reductions would lead to a huge increase in the demand for petrol and diesel and there would be a shortage thereof unless action was taken to meet the shortfall in the fuel supply. One can only hope that it will learn from its mistakes in dealing with the filling station owners, who are manically focussed on furthering their interests and maximising profits with no heed for the public or the economy.

It is a mistake for the government to effect fuel price revisions on a specific day every month since it cannot ensure that all filling stations maintain adequate stocks in case of price reductions. At present, fuel station owners do not have supplies replenished for days on end if they fear price decreases, and there is no one to regulate them. They are apparently guided by Rafferty’s rules or no rules at all. The cantankerous government politicians should be asked to exercise control over their restless tongues, and refrain from announcing fuel price reduction in advance.

The government ought to do everything in its power to ensure that all filling stations maintain sufficient stocks regularly, price revisions or no price revisions. It has to get tough with those who fail to do so and muster the courage to revoke their licences. It should fish or cut bait.

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Editorial

Mudalali Mafia

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Friday 2nd June, 2023

Long lines of vehicles suddenly appeared near filling stations yesterday, evoking dreadful memories of a dark era and causing public panic. Pumps had run dry at most fuel depots, and people had to wait for hours to obtain petrol and diesel. Minister of Power and Energy Kanchana Wijesekera hurriedly issued a media statement denying rumours of a fuel shortage.

Minister Wijesekera tweeted that the country had adequate fuel stocks, but filling stations had not placed orders for petrol and diesel due to speculation about a downward fuel price revision. This is not the first time fuel station owners have done so. They have apparently become a law unto themselves, and the government takes no action against them. How does Minister Wijesekera propose to deal with them and ensure a reliable fuel supply? He should explore the possibility of revoking their licences.

Besides, filling stations are notorious for various malpractices, and cheat their customers with impunity. Most of them remain closed at night much to the inconvenience of the public though fuel should be freely available anytime of the day. The situation has taken a turn for the worse since last year’s fuel crisis. It is doubtful whether filling stations are regulated at all. How can a country achieve its development goals unless there is a reliable fuel supply?

The incumbent dispensation is all out to neutralise threats to its rule on the political front. It allocates resources for riot control generously, and thousands of police and military personnel are deployed at the first sign of a protest. It may be able to keep the meek Opposition in check, but its failure to tame the mudalali Mafia is bound to be its undoing. It cannot even control egg traders, who are apparently running a parallel government, defying as they do consumer protection laws.

More worryingly, now that the recent disruptions to the fuel supply have exposed the impotence of the Ministry of Power and Energy vis-à-vis the filling stations including those under the state-owned CPC (Ceylon Petroleum Corporation), the question is whether the government will have any control over the fuel stations to be set up by foreign companies.

Elephantine shame!

The SLPP-UNP government has embarked on a crusade to protect Buddhism. It has caused a comedienne and a social media activist to be arrested for allegedly insulting the Buddha. Sri Lankan leaders claim to be guided by the tenets of Buddhism, and never miss an opportunity to make a public display of their religiosity? If so, how come this country has earned notoriety for cruelty to animals besides blatant human rights violations?

The suffering of an elephant here has received international media attention, which has prompted Thailand, which gifted the animal to this country years ago, to step in to save it.

Those who are responsible for looking after the poor Thai jumbo must be called to account for serious lapses on their part. The government of Thailand deserves praise for its concern for the poor elephant languishing here. Its efforts to have the ailing jumbo flown back home for treatment are to be highly appreciated however embarrassing they may be to the Sri Lankan authorities. This, however, does not mean that animals do not undergo suffering at the hands of humans in Thailand, which also describes itself as a Buddhist country.

Let the government of Sri Lanka be urged to intervene to ensure that the ailing elephant in the news is looked after properly, and tender an unqualified apology to Thailand and animal lovers who have rightly taken up the cudgels on its behalf.

Animals must be allowed to live in their natural habitats, which should be protected. They are not exhibits to be kept in zoos or paraded for human entertainment, especially in a predominantly Buddhist country.

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