The possibility of a political system free from corruption

With Gotabaya as President, there is hope of possibility of a new constitution ending corruption among politicians and a low-cost political system

The verdict would allow the President a free hand to continue his development initiatives. But when coronavirus forced the country be locked down for months, the original plans of the President’s election manifesto were disturbed.

Sri Lanka proved to the world that coronavirus could be beaten by treating every patient, quarantining possibly infected persons, chase, locate and observe every suspected contact and continuous PCR testing in public domains.

The Government’s problems

The Government’s financial situation is shown by the Central Bank printing Rs. 450 billion from February to July. Isolating the country from the virus was costly; during the lockdown, Government staff salaries were paid and poor families were given Rs. 5,000 each for two months. Meanwhile, garment exports crashed, tourist arrivals completely stopped and remittances from overseas workers reduced to a trickle, leading to severe financial and foreign exchange problems.

Solving foreign exchange and unemployment problems would require curtailing expenditure, restricting imports, also availing of new opportunities for local producers, among them are:

a. Reducing Government overheads

b. Lowering power generation costs

c. Optimum use of investments already made

d. Cordial relations with friendly nations

e. Improving the local agriculture and industry

f. Increasing milk production

g. Resolving human-elephant conflict

Reducing Government expenditure

Government expenditure includes, expenses by politicians and the staff. President Gotabaya Rajapaksa has set an example with a simple lifestyle and using only one vehicle with a police escort, while continuing to attack drug dealers.

In contrast, President Sirisena claimed declaring war against drug dealers would result in attacks even after retirement. With Cabinet acceptance he imported two bullet-proof vehicles paying Rs. 102 million as duties, for use after retirement. Recently, past President Chandrika Kumaratunga returned four of her vehicles out of the allocated 12. Does a past president require 12 vehicles for transport?

Prime Minister Mahinda Rajapaksa is well-known for his religious inclinations, he visits Anuradhapura Sri Maha Bodhi, Ruwanweliseya or Dalada Maligawa in Kandy almost every weekend. His helicopter travels during the first three months cost the country Rs. 84 million. If his land vehicle costs are added, it would exceed Rs. 1 million a day and needs severe trimming for the country’s survival. On the day of elections, after casting his vote in Medamulana, Mahinda travelled to his Kurunegala District by helicopter. Was he the PM at the time?

Mahinda as President was known for his worldwide trips with over 200 staff using SriLankan Airlines, which led to the termination of the agreement with Emirates. The positive aspect of coronavirus is the termination of foreign trips of politicians, at least for the time-being.

The financially-strained new Government needs to curtail salaries, allowances, vehicle permits and perks to MPs, pensions for past presidents and MPs, foreign trips of ministers and their political staff. Then Government staff too would accept reduced perks.

Efficient public service

The public service is overstaffed, especially after the introduction of computers. Only staff shortage is the absence of teachers in mathematics, science and English. The President has promised 45,000 jobs to graduates. If they are given six months of paid leave to study the subject of their choice and pass an interview, the shortage could be averted. In addition, the President needs to warn ministers and MPs of impossibility of new appointments to Government service.

Lowering power generation costs

According to CEB’s Electricity Generation Plan for 2018-2037, the country plans to add the following power generation plants into the electricity generation system:

Major hydro: 842 MW

Mini hydro: 215 MW

Solar: 1,389 MW

Wind: 1,205 MW

Biomass: 85 MW

Oil-based power: 425 MW

Natural gas: 1,500 MW

Coal power: 2,700 MW

CEB plan assumes coal power will be cheap and hence it is given priority. But a report released by PUCSL in 2017 revealed that “total cost at Puttalam plant is LKR 18.60 /kWh, excluding environmental costs”.

Meanwhile, the solar power tender opened few weeks ago for 1 to 10 MW plants offered electricity less than Rs. 10 per unit and no environmental issues. When plant capacities are higher, power costs would be lower. In India 300 MW solar power plants offer electricity around SLR 5 per unit, indicating possibilities beyond the generation plan.

The country’s dream of Mannar natural gas is no longer valid due to excessive gas supplies in the world market, resulting in price crashes. But we may need some LNG based power plants as a power balance between solar and wind power.

Currently, power generation from fossil fuel combustion of 8,400 GWh and if replaced with renewable energy (RE) sources, would result a saving around Rs. 110 billion annually. Solar power plants can be constructed by the private sector without financial costs to the Government and power can be available within two years, compared to minimum five years for a coal power plant. The President’s plan envisaged 80% power generation through RE sources by 2030 and implementing same would make CEB a profitable entity. But CEB wishes to hang on to its Generation Plan and moving CEB engineers towards the President’s plan would require a kick.

Proper utilisation of investment made

Over the decades massive investments made on projects remain unutilised over the years. They include Hambantota Port with a large extent of land for an industrial estate. But Ranil Wickremesinghe refused to release the land to Chinese. If lands are handed over immediately, a large number of industries would be established providing employment to locals and improving Hambantota Port operations. The current conflict between USA and China with US wishing to reduce imports from China would induce Chinese to move operations to Hambantota.

Kantale sugar plantation was handed over to an Indian investor for production of sugar with cultivated sugarcane. But the factory was not released to the investor, claiming the factory was not included in the agreement and wished an underhand payment. The deal was fixed at Rs. 100 million, an advance of Rs. 20 million was made. Two officials accepting the bribe were caught by the police while counting the money and were sentenced for 20 years in prison. The question remains whether they counted as the money was intended for their boss? The new Government needs to negotiate with the Indian investor to produce sugar at Kantale early.

Lotus Tower initiated by the former MR Government was completed long ago and was ceremonially opened by President Sirisena, but remains unutilised. The tower was expected to facilitate mobile phone operators and make communication towers within a 25 km radius redundant, while allowing visitors a view of the city. Usage of the tower is held up due to non-release of adjoining lands by Government authorities.

Grand Hyatt, the multi-storeyed tower on Galle Road, Colpetty, commenced construction during the previous Rajapaksa regime, is still awaiting completion after spending a staggering Rs. 21.6 billion. The physical progress of the project stands at 61.6% and construction was halted owing to legal issues and shortage of funds; it needs the President’s attention.

Cordial relations with friendly nations

The country is fortunate to have cordial relations with countries as India, China and Japan which have helped continuously in the past. Even recently Sri Lanka got financial assistance from India. But a number of unresolved issues remain.

The oil tanks in Trincomalee built by the British were leased to India, but most tanks remain unutilised. Establishing a critical storage of petroleum products would help both countries, but needs reaching an agreement.

The previous Government signed an agreement with India and Japan to develop the East Container Terminal (ECT) in Colombo Port. But Port trade unions demanded ECT be developed by the State under the Port Authority. Their demand was primarily to improve their status as the most powerful trade union, dictating terms as happened a few decades ago; their recent shutdown damaged the Port’s reputation as a reliable hub port.

The previous Government’s Cabinet approved extending the Jaya Container Terminal by 170 metres and import of container handling cranes. The Ports Ministry, under former Minister Mahinda Samarasinghe, ordered cranes without extending the JCT. The three cranes arrived from China without a jetty to use them. JCT being much shallower than ECT, imported cranes are smaller are unable to handle large ships.

Of the containers handled in Colombo Port nearly 70% are transhipped to and from India. A major part of Colombo Port is controlled by China and India is concerned, thus its interest in ECT. Thus it is only fair that the agreement signed by the last Government be implemented.

The Indian Government is interested in implementing solar power plants in Sri Lanka. South India has large production of solar power plants and their production costs are less than SLR 5 per unit. If India be allowed to produce solar power, costs would be one-fourth of current CEB and could reduce electricity prices to consumers.

Much has been said on the monorail project from Malambe to Fort with Japanese assistance, but the Government informed Japan of the wish to cancel the project due to financial constraints. The project was offered with a 40-year loan with 0.1% interest and seven-year no-payment period, the most beneficial loan ever offered. Japanese love for Sri Lanka is due to J.R. Jayewardene’s statement at the San Francisco Peace Treaty in 1952, where Japan was forgiven for its role in World War II.

It was claimed that under the monorail project parking of trains in Kaduwela would be on a marsh built over piles at an enormous cost. An alternative is to extend the railway to Athurugiriya where solid ground is available, possible at the same cost. But why was the alternative not discussed with Japanese? The President needs to get involved and request Japan to continue.

China is the largest contributor to the country’s construction sector. Much-delayed Port City’s legislation for the Financial Centre was gazetted a couple of weeks ago. Of the three countries Indian projects had been minimal, Japanese projects are of high quality, but expensive. Also Japanese unlike Chinese do not indulge in bribery or commissions to get contracts.

Improving agriculture

The original Moragahakanda Project was proposed to supply water to north of Vavuniya, which receives the least rainfall in the country. But under the currently-modified project, only 10% of Moragahakanda water will reach Iranamadu tank near Kilinochchi.

President Sirisena was only interested in supplying water to Polonnaruwa, the region with abundant ancient irrigation schemes. If the arid north is provided with at least 50% of Moragahakanda water, northerners would make the country self-sufficient with onions and potatoes and their issues with the south will disappear.

Our paddy farmers complain of shortage of irrigation water, also of flood waters destroying their crops. Our paddy cultivators use the highest quantum of water in the world. The problem lies with disregard of rain water. Maha rains arrive in second half of September and with mechanised land preparation, cultivation is possible by early October. But cultivation is delayed by Cultivation Committees presided over by the District Secretary until water could be released from tanks. 

When heavy rains arrive from mid-November, short paddy plants are damaged by flooding. Early cultivation would allow harvesting by mid-January, allowing early Yala cultivation with water from irrigation tanks, also a third subsidiary crop afterwards giving farmers an increased income.

Local industry

Our industrial base is very poor, even the existing industries are getting closed down. A case is brassware manufacture which was in existence for generations, especially around Kelaniya and Kandy. Most are affected by environmental concerns, claiming exhaust fumes are detrimental to health. Meanwhile, the market is flooded with imports. If two industrial estates are established around Kelaniya and Kandy and manufacturers helped, the ancient industry could recover, replacing imports.

Jinasena water pumps manufactured locally were popular and held in high esteem well above the imported. But now children having taken over the enterprise, low-end pumps are imported from China and sold with a Jinasena label. The President needs to talk to the management to recommence all production locally, also with their knowledge collected over the decades to manufacture new items as well.

Improving milk production

Sri Lanka is possibly the country consuming the highest percentage of powdered form of milk. Decades ago, Nawala area supplied Colombo citizens’ milk requirement, until the Colombo Municipality banned raising cattle within its limits. Today the public has two options, either powdered milk or UTH treated fresh milk in paper packs, selling a litre at Rs. 260. But the poor milk farmer gets only Rs. 65 a litre. The conversion has become so lucrative and has currently attracted six producers.

Colombo and Gampaha Districts have large acreages of abandoned paddy fields. If they are taken over by the Government and offered to middle-size investors for grass growing to raise cattle, they could supply milk in glass bottles to consumers daily at a price around Rs. 150 a litre. The investor will invest on high-land for cattle sheds and factory and use milking machines (ensuring hygiene).

As for parent stock of cattle, India can be a more suitable source as importing cattle from Australia was a disaster. Also State-owned farms could issue them with cattle. The program would make the country self-sufficient in milk, saving foreign exchange while generating employment opportunities.

Resolving the human-elephant conflict

Practically every week media reports of elephants attacking villages, also the killing of elephants. While elephant numbers remained constant, their food supply has decreased drastically, with the loss of their habitual feeding grounds due to deforestation, irrigation schemes, human settlements and encroachment.

The issue not raised even by the environmental organisations is the widespread encroachment of mostly thorny, fast-spreading invasive plants into jungles, shrubs to low and even highlands of the country. Among the invaders are giant mimosa (maha nidikumba) brought to the country on the backs of goats as food for IPKF senior staff. Also Gandapana “Lantana camara” from W. Indies, Andara (Dichrostachys cinerea), Giant eraminiya and Podisingho-maran or Eupatorium (Japan Lantana) are spread throughout the dry low country.

A few decades ago, spiny bamboo (Katu una), ‘Bambusa bambos’ was planted in Minneriya Wild Reserve to provide long fibre material for the Valachanai Paper Factory. The factory never used the bamboo, but the plants are fast-spreading and the thorns keep the elephants away. A common factor in all above are being thorny and are not consumed by any animal (except the fruit) and are fast-spreading.

Control of further encroachment by villagers into wildlife reserves may be possible with an effort, but relocation of already settled would be a difficult task and politically unpopular. Only possibility of reducing the human-elephant conflict is the removal of invasive thorny plants in the dry zone. This could only be achieved with the help of the armed forces, with instructions from the President.

Discussion

The country managed to keep coronavirus away, but welcoming tourists early will be challenging, as most Western countries are still fighting the disease. The fund shortage has already reduced most imports and increased prices of consumer goods, but opened up opportunities for import substitution, with low interest loans already available. But import controls cannot last long and manufacturers need to make use of the opportunity early.

With a near two-third majority, a new constitution is a possibility. Over the decades after independence various governments brought in legislation to make the country free from corrupt politicians. But minor modifications to new laws made them ineffective. With Gotabaya as President, there is hope of possibility of a new constitution ending corruption among politicians and a low-cost political system. Ending the ability to make money will discourage corrupt persons from entering politics.