It is with
Nationalistic fervour that we applaud the signing of Sino-Sri
Lanka Economic agreements by Hon. Chandrika Bandaranaike Kumaratunge,
the President of Democratic Socialist Republic of Sri Lanka
with the Government of China, just a few day ago.
The most important of it all from the point
of Industry and Economy of the Country is the agreement to
establish the Norochcholai Coal Power Plant.
The economy of Sri Lanka being battered with
major set backs time and again, the chances of revival appear
remote in the foreseeable future. Domestic and external factors
both are accountable for the ever deteriorating situation
and unless political stability is reached through all party
consensuses the country may reach a point of no return socio
economically.
One of the major factors for the current
economic debacle is the growing energy crisis in Sri Lanka
and it is imperative that corrective measures are put in place
urgently as it is better late than never. Whilst acknowledging
the fact that lack of National planning and mixing up the
country’s priorities to suit the whims and fancies and
personal agendas of the politicians which has created this
situation, it is time that the people of this country voice
their views and compel the leaders to act prudently and act
fast.
As we highlighted in an earlier press release,
country was mainly dependent on Hydro generated Power which
accounted for 83% of the country’s needs in the 70s
when the industrial demand for power was much less. Even the
domestic consumptions were far less than it is now.
With the advent of the open economy in late
70s the energy needs of the country began to rise but there
was no forward planning by those in authority. Growth of industrial
production in the country aggravated the demand for dependable,
low cost power but the lack of alternate power resources other
than costly thermal power made the industrial production much
dearer. Presently it is observed that the generation of thermal
power exceeded the quantum of Hydro Power generated by leaps
and bounds. It is estimated that the generation of thermal
power is over 60% of the total electrical power generated
in the country. No country in the world uses more than 10%
thermal power, other than the oil rich Gulf States.
Hydro power generation is totally dependent
on rainfall but the climatic changes due to global warming
resulting from dwindling forest cover and melting glaciers
have certainly affected rainfall patterns in Sri Lanka too
for the worse. This situation limits the availability of water
for Hydro power generation. The main Hydro power sources at
Laxapana, Mahaweli & Samanalawewa complexes are no longer
in a position to cater substantially towards the energy needs
of the country. Therefore, that leaves us with no choice but
to look for alternate power resources.
On the other hand with the ever escalating
fuel prices, now gone beyond US $ 70 per barrel in the world
market a developing country like Sri Lanka cannot even imagine
to be dependent on more thermal power generation.
We are happy to note that the Government
had the courage to implement the Phase I of the Upper Kotmale
Hydro Power Project amidst protests from parties with hidden
agendas. It is heartening to note that the people have now
realized the truth and the myth about UKHP.
Our campaign was neither political nor against
any individual or political party. Our aim was to strengthen
the hand of the Government in power to take a bold step and
implement the said power projects disregarding all possible
political set backs to the party concerned for the sake of
the people in this country. We appealed to the President of
the Democratic Socialist Republic of Sri Lanka, H. E. Chandrika
Bandaranaike Kumaratunga to act courageously as a True National
Leader to help save our country from the economic abyss that
is glaring at us and we are happy that she has acted.
As a responsible Chamber primarily representing
the industrial sector of this country we foresee the looming
energy crisis and urge the industrialists, the members of
the business community, politicians and the general public
to shed our many differences and support the government to
proceed with the implementation of Upper Kotmalai & Norochchalai
power projects, complete and commission them fast.
We are not averse to power sector reforms.
Certainly in a globalized economy, reforms are needed in all
sectors from time to time. However, it is our ardent belief
that CEB and CPC reforms alone will not solve the energy crisis
in Sri Lanka. Now the alternate power projects are becoming
a reality, let’s look at the proposed reforms with sincerity
without any political or individualistic interests.
Upali Samarasinghe
Secretary General/CEO - CNCI
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