Connect with us

Opinion

Deadly Blasts and Great Saviour of the People

Published

on

We have come to the Blast Stage in Sri Lanka!

Gas explosions continue in kitchens and outside, and now there are explosions of liquid fertiliser too. It looks as if the Saubhagye Dekma thinking of presidential candidate Gotabaya Rajapaksa, were in fact a Maha Pipireema Dekma – a Vision of Huge Blasts.

With nearly 500 gas blasts already on record – with at least one dead, many injured and one housewife saved by wearing her husband’s motor-bike helmet in her kitchen, this new Age of Gas-Blasts will certainly be a special chapter in the revised Mahavamsa, that should deal with realty and not the mockery of politicians.

The records of current reality in Sri Lanka will also certainly include the recent verbal blast – obscene and vulgar – by none other than the yellow robed head of the Presidential Task Force on “One Country, One Law”.  Galaboda Aththe Gnanasara, known as a thera, surely gave a new meaning to the “One Country, and No Law” concept, which is the stuff of crooked politics and One Family Power.

Shortly after being sworn in as the President of Sri Lanka, Gotabaya Rajapaksa, made it clear that he had been chosen by the Sinhala-Buddhist majority in this country. Is it the unfettered respect for this majority that has kept the President (and the government) wholly silent on this shameful yellow-robed insult to the very traditions of Buddhism, and the Vinaya of the Maha Sangha? Let’s keep hoping that more members of the Sangha would not take an example of this Gnanasara blast, and behave with much more wisdom of a yellow robe.

The Gas Blasts remain the topic of today. Having taken over from the old Western Capitalist Shell Company, Litro is today the biggest supplier of cooking gas in the country. It was certainly not laughed at although competing with Laugfs. But the situation today is certainly much more than a huge laugh, and a calamitus show of disaster in dealing with the gas business, and the security of the people.

So many decades since it took over the gas business from Shell, Litro owned by the Sri Lanka Insurance Corporation, has shown it has little regard to ensure the safety of the gas-using public. It has shown a major weakness and failure of the State, in ensuring the proper and safe conditions for the sale and use of liquified petroleum gas (LPG) in this country.

Just this week, after a prolonged period of deliberate and escape intended lying about the safety of LP cylinders, Litro was forced to place a full-page advertisement in sections of the media, about the safety conditions on the handling and use of LPG.  It was a very detailed advertisement; but, why was all this not told to the public and users of LPG for so many years?

Why was it necessary to keep all this secret from the public and gas users through so many decades?

More, importantly, why did the Minister, State Minister and key officials in charge of this subject, handled by a State-owned company, keep silent about all this, and the huge faults this company (and Laughs) too had committed in altering the composition volume of the two volatile hydrocarbons – propane and butane, carried in gas cylinders, which caused gas leaks and the many disasters that have taken place.

It is time the members of Parliament, whether in government or Opposition, decided to take speedy legal action, and if necessary, with the passage of any new legislation, too, against all those from ministers to company chairpersons, board members and key officials, who saw the companies make huge  profits, gaining crooked cuts from suppliers, and placing the public at huge risk. This is certainly a matter where party differences should not apply. Members elected to Parliament from whatever party, and those appointed there too, should be united in saving the lives of people, even though politics today is a huge play of corruption.

Litro and Laugfs should both make good, illustrated leaflets, giving all the information on gas use and safety as mentioned in the recent advertisement, and give them to the public who will get replacement cylinders, purchase new cylinders, and also have them available with the gas agents for necessary public distribution.

This huge Blast Stage in Sri Lanka should also make our civilian gas users take a necessary step to give an award to the person who had the courage to initiate knowledge and information, to the State and the Public, on the dangers of the volume changes in gas cylinders. He may be a person CID questioned on political complaints, with ministerial power (not so rare today). He remained The Great Saviour of the People – none other than Mr. Thushan Gunawardene, former Executive Director of the Consumer Affairs Authority.

As 2021 draws to a close, and celebrations and festivities are being planned for Christmas and the New Year, let’s launch a new annual celebration of the Great Saviour of the People!



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Opinion

Dollar Crisis: What aggravated it

Published

on

by Eng. D. Godage

Total foreign currency reserves of the country were around seven billion dollars at the beginning of 2021 but it decreased to around 1.2 billion dollars towards the year end, even though the Central Bank announced that there was a reserve of three billion dollars. The net foreign assets of the total banking system are said to be a US$ 4.1 billion deficit by 2021 end. Everybody knows the suffering and difficulties the countrymen undergo as a result of the depletion of foreign currency or dollar reserves. Without elaborating on those effects, it is the intention of the writer to examine how foreign reserves depleted so fast.

Politicians, officials, public speakers very often tend to blame every government since independence over the past 70 years for ruining this country, but with regard to foreign debt, it is not applicable. Moreover, the effects of the COVID-19 pandemic were felt globally but other countries in this region did not suffer as much and face such crises like the ones faced by Sri Lanka, so it is no excuse. It is not essential to elaborate on this fact as it is common knowledge. Consequently, the writer makes an attempt to understand how and when it happened. The focus of this discussion is on infrastructure development, and not other debt instruments.

Debt burden since independence

The Oya project implemented around 1948 using local funds comes to mind. Moreover, from 1950 the major port development scheme of Colombo Harbour created the Colombo Port, one of the most modern ports at the time, by 1956 under the leadership of the Minister of Transport and Works, Sir John Kotelawala in the Dudley Senanayake Cabinet, utilising local funds amounting to 110 million rupees. While work was in progress, the ship ‘Gothic’, carrying Queen Elizabeth II, berthed alongside the newly constructed Customs Quay to christen it the Queen Elizabeth Quay (QEQ). Incidentally, the QEQ was buried in the privately developed SAGT or South Asia Gateway Terminals around year 2000.

The Mahaweli Development Project, a massive irrigation cum hydroelectric scheme originally planned for 30 years but telescoped into about six years, was undertaken by the J.R. Jayewardene government using concessionary loans as well as grants. Funds were provided based on a thorough feasibility study, with eminent engineer late Dr. A.N.S Kulasinghe and his team of engineers working as consultants. Resultant benefits are well known and they did not lead to any debt crisis in the country.

Road and railway infrastructure development has been carried out with locally raised funds. After the 2004 tsunami disaster, the Railway Department staff rehabilitated the destroyed line to recommence operations with the least possible delay. It is said that northern rail line improvements carried out later on loans under Uthuru Wasanthaya had spent two to three times the cost.

Since 1980 the country has seen another major development programme in the port sector. Studies had been conducted at a time of increasing demand for container traffic, confirming the urgent need to expand port facilities. The first phase of expansion, requiring US$ 32 million, was funded in the form of a Yen currency loan. The project progressed systematically aided by further loans, through a transparent bidding process. As a result, the Colombo Port was elevated from the global rank of 127 in 1981 to 21st in 1997. These loans were granted only after proper feasibility studies were carried out and confirmation of loan repayment capability, as affirmed by the lending Japanese Agency. Extensive borrowing for project infrastructure became the norm only after about 2000 and not since independence.

Newer debt accumulation

A Sunday English newspaper on March 9, 2014 and May 1, 2016 reported, with details from the External Resources Department, on 28 projects funded predominantly by China Exim Bank loans amounting to US$ 7,671 million, with five-year grace and 10-year repayment periods; their interest rates are not indicated but is supposed to be over six percent. All these projects are said to have been initiated through unsolicited tenders. The same newspaper published a report under the caption, “Normal tender procedure not possible for mega projects: PBJ”. This is a questionable statement. Further examination of the above list shows seven projects, all in Hambantota, totalling US$ 5,054 million, for airport, port, highway extension, railway extension and local road network. None of them seem capable of generating revenue to repay the massive loans even though they have been in operation for around 10 years by now. These loans alone require about US$1 billion per year as repayment, burdening the country, and using up its dollar reserves. During the previous regime the Hambantota Port was given out on a 99-year lease.

Did the Treasury officials who handled these borrowings not see the danger of the debt burden or debt trap and the country’s inability to repay them without adequate future revenue? One can cite the shifting global financial structure and unforeseen circumstances as the reason. But they should have been taken into consideration in any plan. High costs due to unsolicited proposals without a competitive bidding process are also an issue. As for costs, the Treasury Secretary has said that it is the engineers who determine costs. This is not an acceptable excuse.

The Colombo Port South Harbour was found to be an urgent project, and proved viable after an extensive feasibility study by 2001. After producing detailed designs, cost estimates and all implementation requisites, it was not possible to proceed due to lack of funds. The Hambantota Port project was also given high priority by the same government though two feasibility studies failed to show the viability of the project. For the Colombo Port project, the Treasury Secretary advocated commercial borrowing claiming that the lending agency conditions were unacceptable.

In fact, only one lending agency came forward to offer approximately one third of the fund requirement. The Ports Authority managed to obtain very concessionary loan of US$ 300 million in 2006, to proceed with the project, albeit after a two-year delay. The new harbour was completed successfully within the stipulated time and cost while adhering to a transparent tender process. It is worthwhile to note that the lowest cost, approximately US$ 320 million, was quoted by the Korean contractor who successfully completed it, while the next bid was around US$ 570 million by a Chinese contractor. This project seems to be generating more revenue than budgeted.

In fact, the biggest container ship in the world ‘Ever Ace’, with a carrying capacity of 24,000 TEU, berthed in the Colombo South Harbour in October 2021 as it is the only port in the region that could accommodate a ship of that scale, bringing great honour and promoting the Colombo Port.

Most Chinese funded projects that commenced during the past two decades seem now complete and in operation, spread among power and energy, transportation, airport and aviation, ports, irrigation and water sectors. Debt distribution is US$ 1,553 million in power and energy, US$ 3.99 billion in transportation, US$ 232 million in airport and aviation, US$ 1,336 million in ports and US$ 101 million in irrigation. This includes projects indicated by the aforementioned 2016 news item, and subsequent major projects like the Central Highway are not included.

Expensive ventures like the Norochcholai coal power plant costing US$ 1,346 million have helped to meet the country’s energy demands and there has to be a post project evaluation to ascertain its financial gains and loan repayment capacity. Highway projects undertaken on expensive loans do not seem to generate enough revenue to meet dollar loan repayments. Although some benefits accrue, the post project economic and financial evaluations are not satisfactory. The highest revenue on a peak day on the Southern Highway has been 38 million rupees a day. Considering the average annual turnover minus the operation and maintenance costs it could take 100 years to repay loans. Authorities should perform a post project evaluation for the benefit of future planners.

Lessons to learn

This is history but should not be discarded, for the valuable information and data therein demonstrate the actual scenario and resultant repercussions. Decision makers and economic advisors to the government, especially of the Treasury and any other relevant officials could review them.

The debt burden has aggravated the dollar crisis during the past two decades. The COVID-19 pandemic during the past two years is not an excuse as other countries in the region too have faced the same but are performing better. The negative economic growth in 2020 and the considerable dollar debt burden, with the country’s reserves collapsing have not occurred suddenly. Severe import restrictions have made day to day life of the people inconvenient and led to the collapse of some domestic industries.

The worst is yet to come, as warned by the Secretary to the President, delivering a speech in Colombo, as reported by a Sunday English newspaper on 28 Nov. 2021. He was the Treasury Secretary during the past two decades, when China Exim Bank loans were signed to the tune of billions of dollars mostly for white elephant projects, The massive dollar debt seems the root cause of most problems faced today.

Continue Reading

Opinion

Territorial mindset, a recipe for disaster!

Published

on

By Chani Imbulgoda

I recall a documentary on animal life on a TV channel. Describing the behaviour of lions, a caretaker said, “These lions are from the Dehiwala zoo. They are vigilant of other lions entering their territory, if one crosses the boundary they fight to death. They won’t like other lions entering their territory.” The announcer remarked, “Just like humans!”

Exactly, just like us. In the animal kingdom the survival of the fittest is the norm and not crossing others’ territory is a rule of thumb. Since the beginning of human civilisation there have been tales of battles. The Trojan war, Alexander’s, Caesar’s, Napoleon’s wars degraded human values. Saddled with cynicism, hostility and jealousy, we humans, like beasts, are at war with ‘others’ who do not fit into our ideologies or our comfort zones. History is a storehouse of tales of human battles over territories in the guise of civilisation. So-called civilisation itself was won over battles. In the local context, the native ‘Yakkhas’ were massacred by Prince Vijaya to develop ‘Sinhale’. America, Canada, Australia inherit a dark history of looting territories of indigenous people in the name of civilisation. Portugal, Spain, Britain tasted the blood of their ‘colonial slaves’. Centuries later, we have not yet shed our primary animal instincts. We battle tooth and nail to protect our territories, our autonomy, values and interests all in the guise of civilised behaviour.

We rarely welcome outsiders into our territories. In the 40s and 50s, women were kept out of men’s territory. Late British Prime Minister aka Iron Lady, Margaret Thatcher, had to struggle many years to break through another of man’s territories, the Parliament. In the movie ‘Margaret Thatcher: The Long Walk to Finchley’, she sobs to her husband that contrary to what she previously believed, despite hard work she cannot win on merit and that dedication and passion are irrelevant. One-time Prime Minister, Edward Heath condemns Thatcher’s outspoken nature to force her out of politics. Heath says that the Parliament is akin to an orchestra made up of many musicians and Thatcher is a French horn more loud than appropriate, that threatens the orchestra’s harmony.

This is how men and also women of the same flock air their resentment towards outsiders, in their own words ‘intruders’ who are colourful and loud in action. Insult, indifference, suspicion, suppression, oppression are not uncommon experiences of pioneers in anything in history or at present. I once heard a senior Professor advising a young colleague attempting to change the system for the better, “Lady, look, do not swim upstream, people would not like it.” Yes, despite good intentions any novel act breaks the harmony…That is why the Buddha had many foes. That is why the notorious thief Barabbas was chosen by the crowd over Jesus.

I tried to uproot a tiny cinnamon sapling that grew through my interlock pavement blocks, failing which I crushed it. It made me realise that this is what happens, no matter how valuable you are. If you crop up in a place where you would not be accepted, every effort is made to root out, failing which, crush you, to ensure that you would not resurface. I suppose many of us had faced similar circumstances at work places, in politics or within social circles. Why does this happen, because of ego, envy, distrust or insecurity? Or because someone deemed a threat by another individual, a leader or a group enters their territory?

A pack of wolves has a leader; the protection of lions’ territory is the responsibility of the leader; the leader is the first to announce danger. No outsider can cross the boundary. We see certain lions, wolves and foxes as alphas. The mentality ‘I am the boss, I know everything’ blinds them. They live on ego, with a superiority complex, under the assumption that no one can challenge their power. If the newcomer is meek and sucks up to the leader, he or she survives and can slowly squirm their way into the pack.

I have heard parents complain about how difficult it is to enrol their kids into various sports clubs in schools. I have worked in private as well as public sector organisations, local and overseas. I have experienced antagonistic behaviour in these organisations. Driven by their insecurity, superior or inferior complexes, they would go to any lengths to harass the outsider and go to any extreme to protect his or her territory. They are myopic to the point of rejecting ideas foreign to them no matter how good they are, as they see ‘danger’ in ideas alien to them. Some group ideologies are thicker than blood. Certain professional groups rarely welcome females. They believe that women cannot meet challenges as men do and can be fiercely territorial. Many qualified and capable individuals are ostracised from organisations or industries or expelled from positions because of this territorial mindset.

A person with a territorial mindset is often overcome by thoughts of safeguarding or enhancing his or her power, control, influence and self-proclaimed status. These are primitive emotions. Taking ownership and defending what people believe belongs to them is a positive trait. But it is this mentality that subjects newcomers to agony when they grow too smart for their own good. They are stifled when the power of those with a territorial mindset is threatened. Many novel ideas and skills go to waste while some newcomers or ‘misfits’ are forced to leave their workplaces, others would continue the fight or be forced to conform.

We talk of harmony, reconciliation, tolerance and unity in diversity. Why cannot we synergize each other’s differences? A French horn would add glamour and at least amuse the audience. A garden consisting of a variety of flowers is more awe-inspiring than a garden of roses alone. Poet Khalil Gibran said that when a river enters the sea, the river is no more, it is diluted in salt water and one cannot trace the river in the sea, but the river grows larger and so does the sea. When we come out of our confining shells we are exposed to greater opportunities as well as benefits for both the newcomer and those already in that society.

(The writer holds a senior position in a state university and has an MBA from the Postgraduate Institute of Management [PIM], Sri Lanka and is currently reading for her PhD in Quality Assurance in the Higher Education Sector at PIM. She can be reached at cv5imbulgoda@gmail.com)

Continue Reading

Opinion

Faulty decisions

Published

on

Farmers protesting against the prevailing fertiliser shortage. (file photo)

The importation of chemical fertilizers, pesticides and herbicides was banned by a Cabinet Memorandum, dated April 27, 2021, to promote the use of organic fertilizers and natural pesticides. As a result, inorganic fertilisers such as urea, Triple superphosphate, Muriate of Potash and other agrochemicals (insecticides, fungicides etc.) became scarce. Agriculture Ministry in the meantime promoted manufacture of organic fertilisers (OF) but they were unable to get sufficient amounts of organic fertilisers manufactured. Most of what was available were of low quality with high C/N ratios. Agric. The Ministry is yet to produce natural insecticides, fungicides, etc. Thousands of farmers, all over the country, started to protest demanding that inorganic fertilisers and appropriate pesticides are made available, because they knew that these agrochemicals are necessary to get better yields from the crops they cultivate. The Soil Science Society of Sri Lanka, representing mostly the Soil Scientists and Agronomists of Sri Lanka, and the Sri Lanka Agricultural Economics Association, the professional body representing the agricultural economists of Sri Lanka predicted massive economic losses due to potential yield losses, with the implementation of the import ban on fertilisers and pesticides

In spite of all these protests, the Ministry of Agriculture (MOA) continued to ban import of inorganic fertilisers and pesticides, This caused immense economic and social problems to the people in general and to the farmers in particular. Farmers who cultivated Paddy in the current Maha complain of a reduction in the yields, and those who cultivated vegetables and other crops had to bear up a substantial decrease in quantity and quality of their produce. Production of maize decreased, resulting in a drop in poultry feed.

Reduction in local rice production made the government importing large quantities of rice from China and Burma. Food prices have increased causing thousands of people mainly the poor, going hungry resulting, health and social problems. Incomes of nearly two million farmers got reduced which affected their buying capacity resulting in numerous undesirable effects such as increasing unemployment, poverty and related issues. Tea small holders complained of reduction in quantity and quality of tea affecting their income, and also a decline on foreign exchange earnings which those in the Finance Ministry, Central Bank and other relevant institutions are frantically searching. All these are the result of the ban of inorganic fertilizers and pesticides, a faulty decision.

In August, the Cabinet removed the ban probably realising the utter foolishness of the decision to ban import of inorganic fertilisers and pesticides. However, it is too late as it takes time to import fertilisers and other agrochemical which were in short supply due to the ban.

The main reason given for banning importation of inorganic fertilisers was that it caused chronic kidney disease with unknown aetiology (CKDU). Several research studies have been conducted since the year 2000, when it was reported to occur in some parts of the country. The findings of these studies do not indicate that there is any relationship between CKDU and fertilisers. CKDU has not been reported in many countries such as China (393 kg/ha) India (175 kg/ha) and United Kingdom (245 kg/ha) where the amount of fertilisers used per hectare is much larger than that of Sri Lanka (138 kg/ha). Note- the fertiliser consumption data given are for 2018 and are based on values given by Food and Agriculture Organization.

The growth rate of Sri Lanka has declined after 2015 . It dwindled to 4.5% in 2016 and 3.1% in 2017 and in 2020 it was -3.6 %. The Trade Deficit ( the difference between exports and imports- TD) shows a decrease but at present it stands at 6.1 US$ billion. Exchange rate continued to increase from Rs. 111 to a US $ in 2010 to Rs, 186 in 2020. Currently it is around Rs. 200. According to Central Bank, External Debt in Sri Lanka increased to 51117.43 USD Million in the third quarter of 2021. These figures indicate that Sri Lanka is heading towards an unprecedented economic crisis. Hence, the government need to implement appropriate strategies to increase exports and reduce imports.

Sri Lanka annually imports food worth Rs. 300 billion. Most of the food imported such as sugar, milk food, lentils, onion, maize, etc., involving around Rs. 200 billion can be locally produced, thereby reducing expenditure on food imports. In view of the current shortage of foreign exchange, it has become extremely important to promote the production of food locally which hitherto have been imported. The plantation sector, which includes tea, rubber, coconut, cashew, sugarcane and minor exports crops such as cinnamon, cardamom, cocoa ,plays a very important role in the economy of the country earning a substantial amount of foreign exchange, Hence, it is important to implement strategies to increase the productivity of the food crop and plantation crops sectors. Inorganic fertilisers, synthetic pesticides and herbicides play a very important role in this regard.

However, the Government is emphasizing that organic fertilisers (OF) are used in the coming yala season as well . Those in the government who made this faulty decision need to realise that OF can never replace inorganic fertilisers and that it can only be supplementary. They need to give serious consideration to the bitter experience of the farmers who applied OF to their crops during the current Maha. The Government needs to understand this fact and reconsider this faulty decision if they want to increase local food and export crop production.

In the year 2022, there will be a severe shortage of food negatively affecting food security, unless the government implements a realistic and effective programme from the beginning of 2022 to solve this issue. Implementation of foolish decisions such as to replace inorganic fertilisers with organic fertilisers, as done in 2021 is not going to solve this problem. Among the 17, he Sustainable Development Goals (SDGs) adopted by the United Nations in 2015, several are related to increase crop production. The Sustainable Development Council of Sri Lanka has a responsibility for coordination, facilitation, monitoring, evaluation and reporting on the implementation of strategies related to development of the agriculture sector in Sri Lanka.

As indicated by Edgar Perera, a former Director of the Dept. of Agricultural Development (Ref. The Island of 17 Jan, 2022) the most appropriate thing to be done is to use OF as a soil re-conditioner along with chemical fertilisers, which will give the much-needed plant nutrients in adequate quantities, to achieve the required yield levels which will be sufficient to meet the national targets.

Dr. C. S. Weeraratna

csweera@sltnet.lk

Continue Reading

Trending