Repo facility with US Fed amidst diminishing exports big risk
Militarisation of public administration system will not be permitted
by Zacki Jabbar
Former Prime Minister and leader of the UNP Ranil Wickremesinghe is hoping there will be a high voter turnout at the forthcoming general election, which, he believes, will prove advantageous to the UNP.
“The higher the number of votes cast, the better for the UNP,” Wickremesinghe said in an interview with The Island, while travelling across the country to address a series of public meetings.
Asked how the UNP would perform with the Samagi Jana Balawegaya vying for a share of its vote base he said, “We are the largest party. It all depends on how many come to vote. No party is sure of that. If there is no fear of the Coronavirus, more people will go to the polling booths. We hope a large number of persons would cast their votes. The higher the percentage, the better for the UNP.”
Wickremesinghe said the people, in a short period of eight months, had got fed up with the Gotabaya Rajapaksa administration, due to the problems they were facing on many fronts including the home economy, as a direct result of leaders in what he called the Family Party––Podujana Peramuna, pulling in different directions.
The government had since last November been unable to secure any tangible international assistance, having isolated itself on the world stage due to the lack of an economic vision and plan, the UNP leader said. It is only the UNP that has a track record of raising the required finances through developing international relations. Economic mismanagement by the Gotabaya Rajapaksa government was the main cause for the suffering people were undergoing and not the Coronavirus pandemic, the UNP leader stressed.
The politicisation or militarisation of the public administration system would not be permitted under a UNP government, Wickremesinghe said when asked about the appointment of Special Task Forces packed with former military officers to run the government. The recent practice of delegating functions of the Police to the military would also be stopped and the military given its rightful role.
Q: How do you see the governments decision to pledge USD 1 billion worth of US Treasury Bonds held by the Central Bank and enter into a repo facility with the US Federal Reserve ?
A: It is illegal without parliamentary approval. Parliament is vested with the control of public finances. The monetary law does not make specific arrangements for this repurchase agreement. The government should explain the need for such an arrangement, how it would be repurchased and what would happen if Sri Lanka defaulted. How does a country with a shortage of USD 7 billion in export earnings repay over USD 1 billion to recover the pledged U.S securities. In this scenario the possibility of default is extremely high, with the country facing the likelihood of losing ownership of the assets pledged. Meanwhile, the MCC agreement has been finalised. The government has a duty to reveal the truth prior to the General Election.
Wickremesinghe said that new laws would be introduced to help protect businesses from bankruptcy due to lockdown caused by COVID-19 and steps taken to ensure that every citizen was able to own a piece of land and a home. It is estimated that the population of the Indian Ocean region would increase by 500 million by 2050. Our long-term goal for Sri Lanka’s agriculture sector is to see the county being positioned to produce the food requirement of the region. Local agriculture will be strengthened to ensure we are modernized and competitive on the global stage.
The UNP has always worked with the intention of developing the country as an operational hub in the Indian Ocean region. It will be with this plan in our sights that Colombo will be transformed into a financial centre, for which, legislation on financial cities will be enacted, he explained.
Highlighting the importance of ethics, Wickremesinghe said that a Parliamentary Standards Act would be enacted to ensure that Members of Parliament and Ministers were governed by a Parliamentary code of ethics. An independent commissioner to ensure the high standards of the legislature would be appointed to inquire into complaints made against parliamentarians.
“In order to minimise the level of corruption – a by-product of the existing Parliamentary electoral system, we will abolish the preferential voting system and replace it with a mechanism that will be a mixture of the proportional representation system and the first past-the-post system to elect members to the 225 seats in Parliament. Laws will also be introduced to control and limit the expenditure of politicians and political parties during election time. Similar laws that exist in the United Kingdom and other countries will be taken into account when formulating the relevant legislation.”
Explaining measures that would be taken to overcome the Corona virus challenge, the UNP leader said steps would be taken to prevent an economic downfall by implementing measures to revitalise the economy. The government’s attention would also be focused on minimising the adverse economic impact a second or third wave of the COVID-19 pandemic could have on the country.
“5,000 PCR tests will be carried out daily. At least 10 million facemasks will be provided to schools, higher education institutions and other such facilities.2,000 ventilators will be purchased for hospitals.”
Wickremesinghe says that under a new programme a special compensation payment would be made to any worker who died while engaged in battling COVID-19. Such individuals will be offered the same facilities offered to military personnel killed during the war. Personal Protection Emergency kits will be made freely available. The number of ICU beds will be increased. A special laboratory to conduct tests on diseases will be established and the Public Health (Emergency) Act will be enacted to legalize lockdown mechanisms and provide the required powers for disease control.
Asked what his government which served four and a half years had achieved, the UNP leader said that period had been marked by economic prosperity and strengthening of democracy by introducing independent judicial, police, elections, anti corruption, human rights and media commissions amongst others.
Wickremesinghe pledged to build on the economic achievements of his government such as improved relations with global superpowers, regained GSP+ resulting in concessionary duty for 6600 export items, increased import earnings by 35 percent by negotiating to lift the ban on fish imports to the European Union, enabling the country to pay off debts by working with Development Banks, enabling better fiscal management, ensuring the timely repayment of debt to avoid rollover risk, regained Sri Lanka’s sovereignty over the Colombo Port City by converting freehold rights given to China by the Rajapaksa government into a leasehold agreement, transformed the Hambantota Port from a failure to a sustainable venture, free trade agreements to strengthen access to export markets, increased tourist arrivals to over two million by establishing the country as a safe destination, powered the boom of the tourist industry by increasing rooms by 30 percent, oversaw Sri Lanka being named best destination” by Lonely Planet. Steered Sri Lanka to be graded as an upper middle-income country, achieved a Primary Surplus for the first time since 1954, powered the highest ever direct investment in 2018 and ensured good governance and transparency.
He also promised to build on the last UNP-led government’s contribution to strengthening democracy such as curtailing the powers of the Executive President by the 19th Amendment to the Constitution, which included reducing the maximum term limit of the incumbent to two terms, ensuring that suitable persons were appointed to high posts by establishing the Constitutional Council and establishment of the various Independent Commissions that ensured the independence of the judiciary, free and fair elections, restoring the independence of the State sector, ending political interference in the Police service, withstanding the Constitutional coup and restoring the supremacy of Parliament, challenging the President’s right to dismiss a Prime Minister elected by Parliament, successfully challenging the Presidents right to unlawfully dissolve Parliament, introducing the Right to Information Act improving transparency, establishing the rule of law, whereby politicians and their families were subject to investigation, granting citizens the right to protest and voice their opinions, ensure media freedom with no journalist being killed or made to disappear as happened under the previous Rajapaksa government. A future UNP administration would rectify this tragedy as well, he stressed.
The UNP leader said that Sri Lanka was faced with the gravest economic crisis since independence and it was only the UNP that had the vision, a plan and the capability to address the present crisis, protect the people and the country, safeguard the nation and ensure a prosperous future. “We have a proven track record time and again undoing economic mismanagement by others and reviving our economy. In 1977, 2001, 2015 and again in 2019 after the Easter Sunday attacks, it was the UNP that led the country’s economies recover.
“It is estimated that Sri Lanka will lose USD 7 billion in foreign revenue this year having to pay USD 3 billion for debt servicing. We have revealed the need for USD 6 billion for the next two years of which USD 3 billion is required immediately. Many countries have already received international assistance to fund their immediate financial requirements. Countries like Pakistan, Nepal, Bangladesh, Myanmar, Afghanistan, Maldives, Egypt and Kenya have begun the process of securing financial support from the International Monetary Fund. We will raise US$ 6 billion utilising the assistance of the IMF and other financial sources including friendly governments.
(Continued on page 6)
THE DEMOCRATIC PARADOX OF SRI LANKA
by R.J. de Silva, Attorney-at-law
In the distant past, there were many approaches to running civilizations. Cruel and ruthless dictators perpetrated assault on human rights, with impunity. The best known among these tyrants were ATTILA the HUN (AD 434-453 of present day Hungary ), GENGHIS KHAN ( 1206-1227 in Central Asia and China ), TIMUR ( 1370-1405 of modern Syria, Iran , Afghanistan) and QUEEN MARY alias ‘Bloody Mary’(1553-1558 in England ).
The combination of divine or absolute power and lack of contact with people made Dictators and Autocrats fascinating as well as terrifying. It is unclear if such characters suffered from mental illness as defined by current standards or whether their lives were marked by incidents that made them ruthless.
Hadenius and Teorell ( 2007 ) identified distinct dictatorships in monarchies, military regimes, one party regimes and restricted multiparty regimes. Studies have revealed that many dictatorial regimes, have democratic facades or some functioning democratic institutions, some holding regular elections and some having operational political parties and legislatures.
Dictatorships are a form of government in which all power remains in the hands of one person enjoying unlimited governmental power obtained by force or fraudulent means in sham elections. Dictatorships are often characterized by deaths or killings because of greed, hatred, pride and yearning for power. For instance, Hitler caused millions of deaths of Jews, Pol Pot killed millions of Cambodians to forcibly change its culture and Idi Amin was responsible for killing hundreds of thousands of Indians in Uganda.
Autocracy is very similar to a dictatorship. Here too, the supreme power lies in the hands of an individual with some supported by a slavish political party. Autocrats use little or no consultation when making decisions and exercise independent authority over policies and procedures. Their decisions are not subject to any legal restraints. The system suppresses public debate and makes criticism of the government, a criminal offence.
Like in dictatorships, autocracies also use force and punishments to those who disobey the leader’s commands. Autocrats manifest in many ways in despotism, oligarchy and fascism.
In the ideology of benevolent or enlightened despotism (popular in the 18th Century Europe),a absolute monarchs enacted a number of changes in political institutions and enlightened governance. Most of the despots started their careers as “freedom fighters”. Many of them amassed wealth abroad while the world was in denial.
An oligarchy is a form of government where power is in the hands of a small group of elite people, holding wealth or family or military prowess. Oligarchies are where a small minority rules the government and exercise power in corrupt ways. Such governments are frequently ruled by prominent families whose children are raised and coached as oligarchy’s heirs.
Fascism is a political ideology that elevates the nation and race above the individual and advocates a ‘Consolidated Autocratic government’ led by a dictator under strict economic and social regulation while suppressing the opposition. Fascist administrations were seen in Italy’s Fascist Party under Mussolini ( 1925-1945 )and the National Socialist German Worker’s Party ( Nazi Party ) under Adolf Hitler ( 1925-1943). Interestingly, the majority of the modern dictatorial regimes refer to their leaders by a variety of titles such as President, King and Prime Minister.
The 20th and 21st Century dictators and autocrats ruled with tyrannical power and never tolerated dissent. Some of them were VALDIMIR LENIN ( 1917-1924 Russia ), JOSEPH STALIN ( 1924-1953 Russia ), BENITO MUSSOLINI ( 1925-1945 Italy ), ADOLF HITLER ( 1933-1945 Germany ), FRANCISCO FRANCO ( 1939-1975 Spain ), MAO ZEDONG (1949-1976- China ), IDI AMIN (1971-1979 Uganda), AUGUSTO PINOCHET ( 1973- 1990 Chile ), GEOGIS PAPANDUPOULUS ( 1967-1974 Greece ), COL MUAMMER GADAFI ( 1969-2011 Libya ).
Dictator led countries are also associated with severe poverty, repression, decreasing health and life expectancy, famine, poor education and rising mental illnesses. Eight of these brutal and repressive autocracies which caused poverty in their countries were : KIM JONG UN since 2011 ( North Korea- 40% poverty ), NICOLAS MANDURO since 2013 with his Presidency in dispute ( Venezuela – 82% poverty ) , BASHA AL ASSAD since 2020 ( Syria -82% poverty ), PAUL KAGME since March 2000 (Rwanda -39.1% poverty ), RECEP ERDOGAN since 2014 ( an elected President in Turkey- 21.9% poverty ), and NGUEMA MBASOSGO longest standing President in the world since 1979 for 40 years to date ( Equatorial Guinea -76. 8% poverty). Two of them – PIERRE NKURUNZIZA ( Burundi ) and IDRIS DEBBY ( Chad ) died in June 2020 April 2021 leaving 64.6% and 46.7% poverty respectively, in their impoverished countries. However, VADIMIR PUTIN (since 2000 Russia ) and XI JING PING ( since 2013 China ) are leading economic powers, but these two countries have also never tolerated dissent.
It is common to see dictators and autocrats appointing prominent members of armed forces in civilian positions and show disrespect towards the independence of the judiciary and freedom for the media. Such systems and their rulers show no concern for human rights or dissent. For instance in China, when a popular national movement for democracy was precipitated by Chinese youth and students calling for greater accountability, constitutional due process, freedom of the Press, speech and association drawing about one million people to the Tiananman Square and about 400 other cities, China’s Paramount leader Deng Xiaoping violently suppressed the movement in one day on June 4, 1986, similar to what happened in Rathupaswela in Sri Lanka, subsequently.
The suppression of the Pro- Democracy movement by the use of the army was followed by the wide spread arrest and deportation of foreign journalists and the strict control of the Press. In Russia, VADIMIR PUTIN, characterized his rule with endemic corruption, jailing political opponents, intimidating media freedom and free and fair elections. When Russia invaded Ukrain in February 2022, Putin ordered the arrest of thousands of its own citizens for protesting against the war. Tsarist minded Putin decreed that the independent media and journalists will be will be given 15 year jail terms if the cruel destruction of Ukrain’s infrastructure, historical monuments, hospitals and bombing civilian targets are reported to the Russian people.
Dictators and Autocrats are prone to create personality based autocracies surrounded by family members. Family bandyism weakened State infrastructure in Sri Lanka after 2005. The Rajapaksa family based autocracy weakened the State, democratic practices and institutionalized corruption. Family members and lackeys of Iraq and Libyan leaders weakened the State apparatus of Iraq and Libya. The weakened States of Iraq and Libya were such that, it failed to produce nuclear weapons as planned, to meet the threat of Israeli expansion. Saddam Hussain ( Iraq ) appointed his son- in- law and notoriously brutal Hussein Kamil, to fast track the production of nuclear weapons. That resulted in scientists in Iraq intentionally further slowing down the programme and nicknamed it the “unclear power”.
In contrast, the tyrant Gadaffi ( Libya ) was surrounded by ‘yes men’ and female bodyguards and an ego trip as a result of which, had no inclination to produce scientists and engineers for the country capable of dealing with complex technicalities associated with the production of nuclear power.
Dictators and Autocrats are prone to interfere with the sovereignty of other countries. Chinese dictator XI JING PING despite being an economic power, is accused of subtle problematic debt trap diplomacy since 2018 in many poor countries in Africa and Asia ruled by corrupt and mismanaging leaders. PUTIN is facing credible allegations of gross violation of human rights in Ukrain and widespread calls for investigation leading up to a trial for war crimes.
Citizen tired of being oppressed and controlled made widespread demands for democracy and the creation of independent Nation States in Europe. Those revolutions popularly known as the ‘Peoples Spring’ in 1848, brought upheavals in Europe mainly due to the dissatisfaction with monarchies, which were at the helm of each country. The revolution started in Sicily and spread to France, Netherlands, Italy and Hungary, Austrian Empire, German Empire and the whole of Europe. Monarchies were replaced by Republics. Old leaders were forced to grant liberal constitutions.
Caught off guard, aristocracy and their allies plotted to return to power and many leaders of the revolutions went into exile. In the decades after 1848, little had changed. Many historians considered the “People’s Spring” a failure, due to the seemingly lack of permanent structural changes. Karl Marx, disappointed with the bourgeois character of the revolution, expressed the theory of a permanent revolution according to which the proletariat should strengthen democratic bourgeois revolutionary forces, until the proletariat itself was ready to seize power.
The Autumn of Nations between 1981 and 1991 (143 years after the political upheavals in Europe), brought down the former Soviet Union (USSR) which was beset with economic stagnation, mismanagement and excessive dogmatism of the Communist Party. It disintegrated USSR without bloodshed to endorse democratic reforms in their countries. Poland was the first to shrug off communism in 1989 after almost a decade of struggles. It was followed by Hungary, Czechoslovakia, Bulgaria and Romania.
Another wave of pro- democracy uprisings began in Muslim countries such as Morocco, Syria, Libya, Egypt and Bahrain in 2010/2011. It was named the “Arab Spring” and started in December 2010 from Tunisia. However, not all the nations that witnessed such social and political upheaval changed for the better. Some of the very same leaders who fought for democracy in the Muslim world (and in many other parts of the world), presided over the gradual decline of democratic rule in their countries.
In Egypt for example, despite the ouster of President Hosni Mubarak, authoritarian rule returned after the controversial election of Morsi in 2012 leading to a coup by his Defence Minister Abdel Fatah El-Sisi in 2013 and he remains in power till today. Libya, since Col Muammar Gaddafi was overthrown violently in October 2011, has remained in a state of civil war with two opposing governments ruling separate regions of the country. The civil war that began in Syria with the Arab Spring has lasted for several years due to ISIS declaring a CALIPHATE governed by Islamic Law in North East of Syria. The ISIS has been effectively defeated, but the oppressive regime of BASHAR AL ASSAD continues with Russian support.
In modern times, generations have rebelled against dictatorships and autocrdacy and fought for human rights and respect for the Rule of law. DEMOCRACY is the method of rule most countries have begun to approve. Although democracy is vulnerable it is very resilient. Mahatma Gandhi said: “Democracy and violence go ill together. States that are today minimally democratic have either to become frankly totalitarian or if they must become fully democratic, they must become courageously nonviolent” and Langstone Hughes ( 1902 – 1967 ) wrote “Democracy will not come today, this year, not ever through compromise and fear. I tire so of hearing people say, let’s things take its own course. Tomorrow is another day. I do not need any freedom when I am dead. I cannot live on tomorrow’s bread.”
To be continued
My intention was to create a safe place, a place without judgment says Beyonce
Beyonce, shown attending the 2016 MTV Video Music Awards, is slated to release a new album in July 2022
Beyonce’s soaring vocals have their place on “Renaissance” but it’s the rhythmic, urgent call to the dance floor that stands out, with a tapestry of influences paying homage to pioneers of funk, soul, r Six years after she shook the culture with her powerful visual album “Lemonade,” Beyonce’s seventh solo studio work is a pulsating, sweaty collection of club tracks aimed at liberating a world consumed by ennui.
Beyonce, the paradigm-shifting music royal whose art has long established her as one of entertainment’s seminal stars, released her hotly anticipated album “Renaissance,” a house-tinged dance record primed for its summer needle drop
Eminently danceable and rife with nods to disco and EDM history — Queen Bey interpolates Donna Summer and Giorgio Moroder along with James Brown and the archetypal synth line from “Show Me Love,” the 1990s house smash by Robin S — the 16-song album is poised to reign over the season.
Prior to releasing her opus Beyonce had dropped “Break My Soul” to acclaim, setting the tone for her house revival that highlighted the Black, queer and working-class artists and communities who molded the electronic dance genre, which first developed in Chicago in the 1980s.The megastar has indicated that “Renaissance” is but the first act of three, in a project she said she recorded over the course of three years during the pandemic.
“Creating this album allowed me a place to dream and to find escape during a scary time for the world,” Beyonce on her website.
“It allowed me to feel free and adventurous in a time when little else was moving,” she continued. “My intention was to create a safe place, a place without judgment. A place to be free of perfectionism and overthinking.”
“A place to scream, release, feel freedom. It was a beautiful journey of exploration.”
– ‘Expansive listening journey’ –
In the weeks preceding the release of “Renaissance” Beyonce teased the album with the steady stream of glossy, curated portraits of herself that over the past decade have become her signature.But though she’s received wide praise for keeping the world of music videos on the cutting edge, Beyonce put out her latest record sans visuals (they’re promised at a later date.)
In a statement her label Parkwood Entertainment and Columbia Records lent insight into the decision, saying the artist “decided to lead without visuals giving fans the opportunity to be limitless in their expansive listening journey.”
Beyonce’s soaring vocals have their place on “Renaissance” but it’s the rhythmic, urgent call to the dance floor that stands out, with a tapestry of influences paying homage to pioneers of funk, soul, rap, house and disco.
“Unique / That’s what you are /Stilettos kicking vintage crystal off the bar,” she sings on “Alien Superstar,” which samples Right Said Fred’s “I’m Too Sexy” in a sonic ode to voguing, the stylized house dance that emerged from the Black LGBTQ ballroom culture of the 1960s.
That song closes by sampling a speech from Barbara Ann Teer, who founded Harlem’s National Black Theatre.
On “Virgo’s Groove” Beyonce gets raunchy with an unabashed sex anthem, adding a titular nod to her star sign — the Virgo turns 41 on September 4.Along with a smattering of deep house cuts as well as tributes to gospel, funk and soul, Beyonce’s collaborators on “Renaissance” include Nile Rodgers, Skrillex, Nigerian singer Tems, Grace Jones, Pharrell and, of course, her rap mogul husband Jay-Z.
– Album leaks, Beyhive stings –
Beyonce has long bucked music’s conventional wisdom, and is credited with popularizing the surprise album drop.She later made waves by releasing “Lemonade” — the groundbreaking work that chronicled her own emotional catharsis following infidelity within a generational and racial context — first on cable television, and limiting its streaming availability.
Since “Lemonade” she’s released “Homecoming,” a live album and film featuring footage from her mythic 2018 Coachella performance, as well as the critically acclaimed song “Black Parade” — which dropped amid mass protests ignited by the police murder of George Floyd.
That song saw the megastar, who first gained fame as a member of Destiny’s Child, become the winningest woman ever at the Grammys with 28, and the gala’s most decorated singer.But for all her cultural clout and an indisputable throne in music’s pantheon, Beyonce’s songs have not seen the same commercial dominance as other contemporary global stars — her last number one solo hit was 2008’s “Single Ladies (Put a Ring on It).”
That’s poised to change with “Renaissance.”
The album’s release saw Queen Bey return to music business as usual, deploying pre-sales, a lead single drop, a tracklist and polished social media fodder.But it wasn’t without a hitch — in the days prior to the official release, the album leaked online.
Bey thanked her hive for waiting, and added that “I appreciate you for calling out anyone that was trying to sneak into the club early.”
“We are going to take our time and Enjoy the music,” the megastar told her fandom. “I love you deep.”–AFP
Are we to burn borrowed dollars just to cook a meal?
Eng. Parakrama Jayasinghe
How many of the consumers who opt to use LPG for cooking, realize that they are burning the dollars borrowed with difficulty, just to cook a meal, while the use of LPG hardly brings in any foreign exchange? The reality is that while the country is struggling to raise the dollars even through loans to import adequate supplies of transport fuel, taking loans to import LPG, which will not result in any Forex earnings could hardly be considered ethical or a priority.
The CBSL data below shows the immense amount of dollars drained out of the country in the past years, purely due to the high powered promotions to coerce and trap the consumers to this non sustainable consumption.
With the escalation of world market prices and the depreciation of the rupee , the impact in rupee terms in year 2022, if we are to import the same quantities, would be much greater as estimated. The Governor of the Central Bank has quite rightly stated that
Sri Lanka will have to manage with available dollar inflows, not bridging finance: CB Governor
By Economy Next • Issue #391
However, the attempt by the government appears to be determined to continue this practice at whatever cost and detriment to the economy, to perpetuate a practice foisted on the people by unscrupulous officials, and thereby try and pretend that the gas queues are over. This has been achieved for the present, thanks to a further loan of $ 70 Million from the World Bank, to import 30,000 tons of LPG recently. Perhaps the daily visuals of the gas queues, that the electronic media took pleasure in broadcasting, may also have pushed the government to this short sighted move.
The other side of the coin is that, before the arrival of this load of LPG, while the empty cylinders remained in the queues, the people were absent. No doubt they sought and found alternative means of cooking their meals, albeit with less convenience than using gas. Obviously they would also have been helped in this by the intrepid efforts of many Sri Lankan entrepreneurs who designed and manufactured cooking stoves to use either fuel wood or charcoal, which do not require any dollars.
The novel stoves are yet to be available in adequate numbers in the market, although the manufacturers are running long waiting lists. As such some consumers may have been forced to revert to direct use of fire wood, accepting the disadvantage of smoke and soot. But Sri Lanka has already introduced most acceptable models of cooking stoves to use wood and wood charcoal, devoid of any smoke and soot. These have proved to be acceptable alternatives to the use of gas stoves for the daily cooking needs, even in high rise apartments.
The reality is that the consumers have recognized the fact that the government or the officials cannot be relied upon to provide their essential needs, and their salvation lies in seeking indigenous alternative solutions themselves which have proven to be equally effective.
But shouldn’t this positive change have been noted by the authorities and fostered with the same vigour with which the use of the imported LPG was promoted? What about the media? They diverted their cameras to the petrol and diesel queues, obviously the emerging negative scene of news value.
The officials of the Litro gas company are heard to give assurances of continued supply of LPG in the future, while they admit the loan received is adequate for supplies up to October only. According to their web page their customer base exceeds 4,000,000. The consumption in 2020 was 437,000 tons, purchased at a cost of $ 236 Million. By now it would exceed 450,000 tons annually. How far would the $ 70 Million loan go at present day gas prices? What happens next? Are they hoping to get yet another loan, when the Ministry of Power and Energy is forced to restrict the issue of essential transport fuels to a minimum, due to lack of dollars? Isn’t this a willful deception of the consumers?
Therefore, the discerning consumers are well advised to consider the following points in their decision making for the future.
- = The import of LPG is possible only through loans which will have to be paid by our children and grandchildren
- = Continued dependence on LPG is a never ending problem and will need more and more loans with no chance of the LPG used leading to any foreign exchange earnings
- = The loans taken have to be repaid by the entire country ,while the benefit is enjoyed by only a limited section of the society, which is morally unacceptable
- = For those fortunate to get even a cylinder of LPG, adopting the already available options of stoves using either charcoal or wood , for the cooking of the main meals , would substantially reduce the monthly expenditure as shown below. This would preserve the LPG cylinder bought with difficulty, to be available for any limited usage in between and for any emergencies for many months
- = The consumers can be the drivers of the change which would reduce the demand for LPG and thus save the country millions of dollars year after year
- = This would create a significant indigenous industry whereby the millions of dollars sent out would flow to the local industrialists and rural communities supplying the charcoal and wood. Even a 50% reduction of the imports could result in a local industry worth over Rs 80 Billion annually.
These are indeed practical and worthwhile contributions to resolve a national problem. Are each of us ready to commit to extend the use of our LPG cylinder to last several months, thereby reducing the demand to 50% or even to 25% in the coming year? This should be considered a national duty by all of us.
Just to assuage any fears of deforestation, contrary to popular belief, Sri Lanka already has adequate renewable and sustainable biomass resources formally counted as over 12,000,000 tons annually, contributing to 50% of the total primary energy demand. Simultaneously, a practical program of social reforestation has to be encouraged where the user of charcoal, plants wherever he can, plants trees to compensate for the charcoal he uses. In this way the next generation will also be assured of their own sustainable supply with absolutely no impact on the forest cover. A plant that can be recommended is Gliricidia Sepium among others, which can be harvested in two years, and thereafter every eight months.
(The writer is past president of the Bio Energy Association of Sri Lanka www.bioenergysrilanka.lk
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