Features
Retreat from Sanity in the Power Sector
by Parakrama Jayasinghe
“Sanity has Prevailed No More Coal Power Plants” . This is the title of my article in the Sunday Island in October 2016 ( ) after the Secretary, Ministry of Power and Energy gave an undertaking to the Supreme Court on September 13, 2016 , that the proposed Sampur coal power plant will not be built. This undertaking did not result from the Ministry or the CEB exercising any rational reasoning of the insanity of continuing to push for more and more coal power plants, but due to the undeniable and obvious negative impacts of the proposed coal power plant laid before the Supreme Court. The writing was on the wall that if the plea by the Environmental Foundation Ltd supported by many other concerned organizations and individuals, if heard by the court would have resulted in the same outcome.
The euphoria felt by the country at large was spelled out by the first paragraph of my above article
“Sri Lanka and those of us who have battled for decades to highlight the dangers posed by use of coal for power generation, both for the environment in general and the health of the people without exception, can at last heave a sigh of relief. It is hardly necessary to emphasize that Sri Lanka not having any indigenous coal reserves, had no compulsion to even consider this option until all other options are exhausted.”
That was back in 2016. Anyone who has even a nodding acquaintance with the recent trends in the power sector in the rest of the world, would therefore be aghast to listen to Prime Minister Mahinda Rajapaksa declaring in the recent budget speech that a 300 MW coal power plant is proposed to be built at Norochcholai. It will be recalled that Rajapaksa in his Presidential Election Manifesto ” Vision for the Future ” declared
Indigenous energy resources will be developed to the optimum levels to minimise dependence on non-indigenous resources, subject to economic, environmental and social constraints. (Page 5)
This was in 2010. The changes in the last decade on all “economic, environmental and social constraints” without exception have made even consideration of any coal power plants totally insane._
And President Gotabaya Rajapakse went even further to declare a goal of achieving 80% renewable contribution to the energy sector by year 2030. As such there is absolutely no room for any more coal power plants as the present three are expected to continue to operate and limp along till then.
So we, the citizens are nonplussed by this turn of events with the Minister for Power and Energy Dulles Alahapperuma bragging in parliament (Nov 28, 2020) that work on the fourth coal power plant at Norochchloai will commence in two weeks.
Even though the Sampur coal power plant was shelved, the CEB never accepted that Sri Lanka could have a secure and reliable power supply in the future without depending on more coal power plants. Enough has been said about the harm being done by this power plant to the environment and the health of the people and will not be repeated here. The CEB continued its campaign to do further harm by proposing to add some 2,700 MW if coal power in their proposed Long Term Generation Plan for 2018-2037.
Fortunately the totally false assumptions and forecasts used to portray coal power as the least cost option was debunked by many and the PUCSL approved an amended proposal which had 4500 MW Natural Gas power plants instead of any more coal power plants. ( )
The CEB was not ready to accept this decision of the regulator, which is its legal responsibility and through its Engineers Union launched a campaign to discredit the PUCSL, the legally constituted regulator. The government did not have the backbone to lay down the law and tell the CEB authorities to abide by the LTEGP approved by the PUCSL. This would have been the procedure in any country when any licensee flouts the regulator’s orders and faces revoking of the permits issued to them. While in Sri Lanka, the country like no other irrespective of the government in power, such stipulations apply only to private sector developers of renewable energy.
Or does this portend the future way of doing things when there are rumblings of the Electricity Act to be changed to take away the powers of the PUCSL. The PUCSL has done yeoman service in past years to protect the rights of the consumers as well as the country, by debunking the totally fallacious arguments set forth by the utility, trying to pretend that coal power is the least cost option. Without an independent regulator for the sector, the CEB with the monopoly status could continue their totally irresponsible plans and programs.
It is unfortunate to see that they have managed to hoodwink the present government and the Ministry of Power and Energy as well, as they have continued to do so for several decades. The newest ploy was to propagate a myth of ” Clean Coal ” The fact that there is no such animal was clearly explained in the Article Dirty Coal Raising its Head disguised as “Clean Coal” ()
If these unwarranted and totally unwise power projects are permitted to go through, “The Vision for Prosperity and Splendour” of President Gotabaya Rajapaksa which the country hoped would embody the national policy of the present government, would be relegated to just an election manifesto like many others in the past, just promises with no intention of fulfilling.
But all that is required to reach a clear vision for the future of coal for electricity, is to view the dozens of postings on the internet. Many countries with vast indigenous coal resources are shelving plans for any more coal power plants and increasing numbers of existing coal power plants are being closed down. A few of these news item out of hundreds are listed below.
The World Scene – New Coal Plants canceled
Bangladesh’s Ministry of Power, Energy and Mineral Resources proposed 350 MW Gazaria coal plant be dropped. Bangladeshi government officials have confirmed almost 90 per cent of proposed coal power plants may be scrapped,
Coal power is no more a cheap option and it’s becoming more expensive for imported coal. -Mohammad Hossain, the Director General of the Bangladesh Power, Energy and Mineral Resources research body.
Maharashtra’s Minister for Energy, Nitin Raut, rejected construction of a new 660 megawatt (MW) coal unit at the aging 910 MW Nasik plant owned by the Maharashtra State Power Generation Company
Canada:
Donkin mine in Nova Scotia, which opened in 2017, closes
UK:
The 2000 MW Fiddler’s Ferry and the 1725 MW Aberthaw power stations have closed
Global coal power capacity declined by 21,200 megawatts (MW) in the first half of 2020 with the largest changes being the closure of 8300 MW in European Union countries and 5400 MW in the US,
Poland Could Phase Out Coal by 2030 in Business As Usual
French will close its 600 megawatt (MW) Provence coal plant in France two years earlier than planned.
Other countries shouldn’t settle for dirtier, high-carbon power projects now that China has decided to phase them out domestically, Han Chen in China Dialogue.
Romanian Government confirms no more coal plants to be built:
Marubeni Corporation, will exit from the consortium proposing to build the 630 MW Thabametsi coal plant in South Africa.
NGO groups in the Philippines have welcomed the decision by the South Korean utility KEPCO that it will not proceed with the proposed Sual 2 coal plant,
Prime Minister, Yoshihide Suga, said he would “fundamentally change Japan’s long-term reliance on coal fired energy” as the country moved to be carbon neutral by 2050
South Korea unveils 2050 carbon neutrality target. “We will create new markets and industries and create jobs by replacing coal power generation with renewable energy,”
Pakistan: Government considers ban on new plants that rely on imported gas and coal
( The web references to these news items are available if requested)
It is seen that these decisions come from all over the world and from many countries with their own coal resources. There is no earthly reason for Sri Lanka to take an opposite view, unless driven by private agendas. Furthermore the source of funding for coal power plants are also drying out.
No more Funding for New Coal Power Plants
Sumitomo announces suspension of loans for new coal plants
Review urges Asian Development Bank to support coal phase-out…
The Industrial and Commercial Bank of China (ICBC) has decided not to finance the proposed 1050 MW Lamu coal plant in Kenya.
Samsung’s key insurance affiliates pledge to halt coal investments
Coal is no longer the Least Cost Option
Solar and Wind power are now cheaper than coal in all countries. This has been proven time and again in Sri Lanka too as indicated by the responses to the recent tenders.
In addition to the concerns on the environmental damage the very clear evidence that Renewable Energy resources such as wind and solar are now far cheaper to generate electricity than even operating existing coal power plants. Therefore even on economic grounds opting for more coal power plants for Sri Lanka is sheer lunacy, unless of course there are other reasons which do not come into the public domain. Why this haste to commence work on a power plant in blatant violation of the Electricity Act as well as the due process for evaluating the environmental impacts? Maybe the plan is to get docile agencies to formulate the Terms of Reference and for conducting the EIAs as was done in the case of existing coal power plant, as well as in case of the Sampur coal power plant. It will be interesting to see to what extent the TOR will cover the recommendations by Dr Janaka Ratnasiri in his article (). In addition the SLEMA report on the externalities clearly shows that a minimum of Rs 10.00 per unit has to be added to the cost of generation from coal to cover the impact on the environment and the health aspects.
In this situation, a ray of hope is the directive given by the Chairman of the COPE that the Central Environmental Authority should have the jurisdiction to conduct the EIA process as the possible environmental impact would affect the whole country, beyond the boundaries of the North Western Province.
But then who knows to what extent the CEB or the Ministry will abide by the directions of COPE when they regard the directives of the Regulator PUCSL in utter disdain.
There are many Renewable Energy Projects and even Natural Gas projects already approved by the government , which will ensure the future energy security without resorting to this dirty coal option, whatever the effort to whilewash it.
As such Sri Lanka can only wait in hope for sanity to return as nothing seems to have changed in the power sector, irrespective of the change in government and lofty promises given.
Eng Parakrama Jayasinghe
E Mail:
28th Nov 2020
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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