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JVP Leader questions wisdom of promoting privatisation

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By Rathindra Kuruwita

Those who claimed that privatisation was the panacea for Sri Lanka’s economic ills had to present information about privatise institutions first, Janatha Vimukthi Peramuna (JVP) leader Anura Kumara Dissanayake said on Wednesday at a conference on privatisation of state assets.

Dissanayake said that the SLPP had campaigned in 2019 and 2020 on a platform of protecting and developing state assets. Therefore, if it embarked on a path of privatizing state assets, it should first go for an election and seek a new mandate.Dissanayake said that Sri Lanka had been privatising state assets since the 1980s and an overwhelming majority of those projects had led to disaster.

“In the 80s and 90s we privatised textile mills and paper manufacturing plants. Of course, there were issues with the quality of their products, but we have to understand that this was the 1980s. Now, these factories are closed, and we import almost all textiles now, burning a lot of foreign exchange. We also have a severe paper shortage and there are complaints that we don’t have paper to print school textbooks, exercise boots, term test papers and print newspapers. We privatised tea plantations, and these plantation owners claim that they can’t pay a daily wage of Rs. 1000. So, before telling us why we should privatise the rest of state-owned enterprises, the proponents of privatisation must show us the data on the impact of previous privatisation endeavours,” he said.

The JVP leader said that those who support privatisation often show Sri Lanka Telecom (SLT) as an example of the benefits of privatization. Dissanayake said that advocates of privatisation claim that before privatisation it took six to seven months to get a connection and that once the SLT was privatized everything changed.

“Is this what actually happened? If you look at the technological evolution of the telecommunications industry, the late 1980s and early 1990s saw boosts in digitization and wireless technologies. The privatization of SLT took place at a time when these technological developments were taking place.

“We benefited from technological developments in other parts of the world. The driver of efficiency in telecommunications in Sri Lanka was technological breakthroughs in the west, not privatization,” he said.

Dissanayake added that during the current economic crisis, those who represent powerful business interests have done a good job of convincing people that the best course of action is to privatize state assets.

“People are suffering and when they see the electricity bill or suffer from fuel hikes, they have been told that this is happening because the Ceylon Electricity Board (CEB) and Ceylon Petroleum Corporation (CPC) are owned by the state. They think the prices have gone up because there are too many workers in these institutions,” he said.

However, if the inefficiency of state owned enterprises is the reason for electricity and fuel price hikes, what could explain the dramatic rise in the prices of items like cement or biscuits or milk powder? the JVP leader asked.

“The government plays no role in producing cement. When it comes to milk powder, Highland only has about five percent market share and Highland is still cheaper than other brands. The advocates of privatization are silent on this. Or they tell us that milk powder is bad for the body, or we should not buy cement or biscuits. So, are we going to blame the inefficiency of the private sector for the price increase in biscuits? It is obvious that the current price hikes have little to do with the ownership,” he said.

Dissanayake said that the government is not proposing to only sell loss making institutions. Among institutions that are earmarked for privatization are profit making entities like the SLT, Sri Lanka Insurance Corporation and Sri Lankan ground handling and catering.

“Catering and ground handling departments of SriLankan make a lot of profit. I have looked at the annual reports of SriLankan catering from 2011 to 2021. They have been profitable in all years except 2020, they have been profitable even in the 2021-2022 financial year. It’s obvious why they made losses in 2020. If you look at ground handling, they are doing even better. They made a five billion rupee profit last year. The government is getting ready to sell them and I am sure there are many people ready to buy them. But what about the airline? No one will buy the airline because liabilities are higher than assets and this is a really bad time to run an airline. The government is ready to absorb all the losses of the airline, but even then there are no buyers. We will end up selling the profit-making entities and holding on to loss makers. This will only make things worse,” he said.

The JVP leader said that there are three main drivers that animate those who support privatization. Some of them are adherents of minimum government and believe that the government must not be involved in any businesses. On the other hand, the government is desperate for dollars.

“From 1980 we have failed to earn the dollars we need. In 2022, there is a gap of eight billion dollars to meet imports. If we had not defaulted we would have had to pay six billion dollars for debt servicing. How have we filled this gap? We used to make some money from tourism and foreign remittances. We filled the rest of the gap through borrowings and selling assets. Now we are scraping the bottom of the barrel,” he said.

Dissanayake added that another thing that animates privatization advocates is the opportunity to make money out of these transactions. He said that when large state institutions were privatized, those involved in the process made a lot of money.

“When Hingurana sugar was sold, the institution had 7000 acres of cane, a 300-acre plant nursery, a factory, and 70 million rupees in the bank and sugar in store. It was sold for less than sugar in the store. If we look at the current context, Minister Nimal Siripala is desperate to privatize SriLankan catering and ground handling because one of his deals went wrong a few months ago,” he said.

The JVP does not believe that the state should hold onto everything and try to involve itself in every sector, he said. However, the government has the responsibility to ensure that goods and services are available freely at a decent price, in good quality.

“We can control some aspects of the market through regulation. We can also intervene through the cooperative system. If you look at Amul, India’s dairy giant that makes billions of dollars in profit, is a cooperative. Fonterra, the producer of Anchor brand, is a cooperative. Imagine what we can do if we get small and medium scale rice millers into a cooperative and help them with finance and technology? We could easily break the monopoly of big mill owners and reduce the price of rice. Look at the tile sector, two businessmen run the sector, and now apparently people have to wait for months to get tiles. If we believed the advocates of privatization, this shouldn’t be the result of privatization. A JVP government won’t allow monopolies,” he said.



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Meeting between Catholic religious leaders and President

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A meeting between President Anura Kumara Dissanayake and Catholic religious leaders, led by His Eminence Malcolm Cardinal Ranjith, Archbishop of Colombo, was held at the Presidential Secretariat on Thursday (10).

Special attention was given to the Government’s programme to strengthen coexistence, peace and reconciliation among all communities in the country and to ensure national unity by preventing any form of racist or religiously motivated hate activity.

The progress of investigations into the Easter Sunday attacks was also discussed.

Lengthy discussions were held on measures that could be taken to prevent environmental damage and destruction affecting the lives of the people.

The Catholic religious leaders commended the measures taken by the Government to safeguard trust among all communities and expressed their fullest support for these efforts.

The issues faced by Catholic communities, including infrastructure development in areas where Catholic people reside, as well as measures that should be taken to address these issues, were also discussed at length.

Rev. Fr. Cyril Gamini, Rev. Fr. Julian Patrick and other priests, as well as Deputy Minister of Religious and Cultural Affairs Muneer Mulaffer, President’s Senior Additional Secretary Roshan Gamage and others, were also present at the meeting.

President’s Media Division (PMD)

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Sri Lanka faces new grid challenge as rooftop solar surges: former CEB GM

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BY IfhAm NIzAm

Sri Lanka could soon face a new electricity-grid challenge—not from too little power, but from having too much solar generation in the wrong places and at the wrong times, a former Ceylon Electricity Board (CEB) General Manager told The Island.

The former CEB GM who insisted not to be named warned that the rapid growth of rooftop and utility-scale solar could place increasing pressure on CEB and LECO distribution feeders, substations and the national grid unless transmission, storage and grid-management systems are upgraded at the same pace.

“The issue is no longer simply how much solar we can install. The question is whether the grid can absorb those electrons when and where they are produced,” he told The Island.

He said Sri Lanka should learn from China and India, where the enormous expansion of renewable generation is now forcing policymakers to focus increasingly on storage, transmission capacity, intelligent dispatch and grid flexibility.

“China has already exceeded 1.28 TW of installed solar, while India’s grid-connected installed solar capacity stood at around 162.15 GW as of June 30, 2026. The difficult question now is what you actually do with so much solar when everyone is generating at almost the same time,” he said.

For Sri Lanka, he said, the warning is particularly relevant to the distribution network.

A feeder carrying a high concentration of rooftop solar can, during periods of strong sunshine and low local demand, move from the traditional one-way flow of electricity towards consumers to reverse power flow back towards the transformer and upstream network.

“That means the feeder is no longer simply a one-way road for electricity. At certain times of the day, it becomes a two-way road,” he said.

This can create voltage-rise, protection-coordination and transformer-loading issues and could eventually limit the amount of additional rooftop solar that can safely be connected to particular feeders.

“What matters is where those megawatts are connected,” he told The Island.

He said Sri Lanka therefore needs to begin looking at solar hosting capacity feeder by feeder and substation by substation, rather than treating the national grid as having unlimited capacity to absorb new distributed generation.

The problem is compounded by the evening transition, when solar generation falls rapidly just as electricity demand can increase.

“If the system has a lot of solar in the middle of the day and then loses that generation rapidly in the evening, something else has to respond. That is a flexibility problem,” he said.

This is where battery energy storage systems (BESS) are likely to become increasingly important—but the former CEB chief cautioned against allowing cheap imported battery hardware to drive the market.

“Sri Lanka could soon have huge BESS demand, very cheap battery hardware and everyone suddenly becoming a BESS pundit. What could possibly go wrong?” he said.

He cited fire safety, degradation, poor integration, weak energy-management systems, questionable warranties, incorrect sizing, inappropriate grid locations and poor thermal management as major risks.

“A system can look fantastic in Excel on Day One but perform very differently in Year Two,” he told The Island.

He said the future BESS market would therefore be determined less by who could supply the cheapest container and more by who understood the complete system.

“The future BESS business will not be about who can assemble the cheapest container. It will be about who understands battery, PCS, EMS, grid, safety, degradation and dispatch economics as one system,” he said.

For Sri Lanka, storage should also be considered as a distribution-grid asset, rather than solely as a large transmission-level installation.

Strategically located batteries could absorb excess rooftop solar on constrained feeders during the middle of the day and release electricity later when local demand rises, potentially reducing network congestion and improving the value of distributed generation.

“The question is not simply, ‘How many megawatt-hours of batteries do we need?’ The question is, ‘Where does the battery create the greatest system value?’” he said.

He said China’s and India’s experience could broadly be viewed as three stages: Phase One—build solar and wind; Phase Two—build storage; and Phase Three—redesign the grid around renewables.

Sri Lanka, he said, should learn from that progression before renewable penetration makes grid problems significantly more expensive to solve.

“Installing another large amount of solar is one thing. Absorbing those electrons when the sun is shining everywhere at once is quite another,” he said.

“Solar taught us how to generate cheap electrons. BESS and the grid will decide whether those cheap electrons are actually useful when they are needed.”

“That is perhaps the biggest lesson Sri Lanka should take from China and India’s energy transition right now,” he added.

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SC rules President Sirisena’s pardon of Gnanasara thera invalid

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The Supreme Court yesterday ruled that former President Maithripala Sirisena’s decision to grant a presidential pardon to Bodu Bala Sena (BBS) General Secretary Ven. Galagoda Atte Gnanasara Thera was arbitrary and invalid in law.

A three-judge bench headed by Justice Janak de Silva delivered the judgment in response to fundamental rights petitions filed by the Centre for Policy Alternatives (CPA) and Sandhya Ekneligoda, challenging the former President’s decision to release the monk from prison.

Gnanasara Thera had been sentenced by the Court of Appeal in August 2018 to 19 years’ rigorous imprisonment, to run concurrently as six years, after being found guilty of contempt of court over his conduct inside the Homagama Magistrate’s Court on January 25, 2016, during proceedings related to the disappearance of Prageeth Ekneligoda.

The Supreme Court subsequently upheld the Court of Appeal’s finding of guilt on October 5, 2018.

However, Gnanasara Thera was released from Welikada Prison on May 23, 2019, after the then President Sirisena granted him a presidential pardon.

The petitioners challenged the legality of the pardon, prompting the Supreme Court to examine the exercise of the President’s constitutional power of clemency.

The Court’s ruling yesterday effectively nullifies the pardon granted to the BBS leader.

Viran Corea, PC, with Luwie Ganeshathasan and Khyati Wikramanayake appeared for the CPA, while Counsel Asthika Devendra, with Pulasthi Hewamanne, instructed by Manjula Balasuriya, appeared for Sandhya Ekneligoda.Counsel Thishya Weragoda, with Sanjaya Marambe and Iresh Senevirathne, appeared for Gnanasara Thera. Faiszer Musthapha, PC, with Pulasthi Rupesinghe, appeared for former President Sirisena.

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