One recent move was the sudden salary hike for the Electricity Board, scheduled for payment in September 2024, seen as a calculated bribe to silence dissent and suppress protests against the steep increase in electricity bills.
As the presidential election campaign intensifies in Sri Lanka, serious concerns have been raised regarding the nation’s energy sector and its increasing ties with India. In a detailed statement, Bandu Ranga Kariyavasam, Director of the Human & Environmental Resources Development Foundation (HERD), warned of the potential “Indian energy robbery” and the long-term consequences of agreements made between the Sri Lankan government and India.
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| Mannar wind power project [File Photo] |
The statement from HERD comes at a time when President Ranil Wickremesinghe is actively campaigning for re-election. On September 16, 2024, Wickremesinghe addressed a gathering in Kantale city, where he outlined plans for developing the Trincomalee port in partnership with India. He also revealed an agreement to allocate 1,000 acres of land in Kappalthura to India for office use, further cementing India’s influence in the region. HERD’s statement criticizes these agreements, suggesting they may lead to a significant erosion of Sri Lanka’s sovereignty over its own resources.
HERD expressed concerns that such agreements, if finalized under the current administration, would be difficult to undo by any future government. “If any agreement has been made with India as President, the future government cannot rule it out at once,” the statement reads. This concern stems from previous instances where President Wickremesinghe’s decisions on national resources and land have had far-reaching implications. However, according to HERD, his administration has failed to implement these plans properly, leaving the country vulnerable to external exploitation.
The organization also scrutinized the energy policies of major political parties, including the National People’s Force and the Samagi Jana Balawegaya. It pointed out that neither party has provided a clear stance on countering India’s growing dominance in Sri Lanka’s energy sector. While the National People’s Power has proposed producing 2,000 megawatts of clean energy, HERD argues that they have overlooked the immense potential of wind energy in Sri Lanka. According to World Bank studies, Sri Lanka could produce up to 56,000 megawatts of electricity through wind power. Despite this potential, the focus has been on projects like those run by India’s Adani Group in the northern province, which may result in higher electricity costs and diminished energy independence for Sri Lanka.
HERD’s statement also draws attention to the critical issue of rising poverty and hunger in Sri Lanka, questioning how the upcoming presidential election could truly address these concerns. It criticizes the apparent complicity of power board trade unions, which represent all political parties, in India’s ongoing energy takeover. According to HERD, the Indian strategy to subdue these unions has been increasingly successful. One of the recent moves cited was the approval of a salary increase for the Electricity Board amid the heated election atmosphere. Scheduled for payment on September 18-19, 2024, this pay raise, including back payments for August, was seen as a calculated move to quell dissent within the board. Additional financial concessions were also provided to electricity workers in recent days, seemingly to suppress protests against the significant hike in electricity bills.
HERD accuses the government of using the substantial profits from this rate increase as a means to “bribe” board employees, thereby reinforcing the control of foreign interests over the electricity sector. It describes this process as a “cleverly cruel act” where funds essentially stolen from the poor are being used to further entrench foreign dominance. The statement concludes with a pointed question: Will the new government, unlike Mahinda and Ranil, choose not to alternate between handing over resources to China and India, but instead resolve the ongoing financial crisis by safeguarding national assets?
HERD warns that reliance on Indian-led projects could lead to a situation where Sri Lanka is paying inflated prices for electricity, while India benefits from the arrangement. The statement further claims that agreements in place may allow Adani to sell electricity generated in Sri Lanka back to India, using Sri Lanka’s limited land resources for energy production. This situation is exacerbated by recent amendments to the Electricity Act, which limit the ability of regulatory bodies like the Public Utilities Commission to challenge these agreements or regulate the sector effectively.
The statement also highlighted a parallel situation in Bangladesh, where an agreement with Adani led to the country purchasing electricity at higher prices, resulting in significant financial strain. HERD suggests that Sri Lanka could face a similar outcome if current energy policies are not reevaluated.
Adding to the complexity, the statement referenced that the reliance on Indian energy not only poses a threat to Sri Lanka’s sovereignty but also has economic implications. The organization criticized how Indian companies have been involved in key energy initiatives, such as hydrogen fuel production, with no clear plans from Sri Lankan political parties to reverse these processes. According to HERD, even if a new government steps in, the majority of the benefits from these projects will likely continue to favor Indian companies, thereby undermining Sri Lanka’s energy independence and economic growth.
HERD also cast doubt on the ability of Sri Lankan political parties to resist Indian influence. It pointed out that the Samagi Jana Balawega’s policy statements on energy also appear to be under the sway of India, even if they do not explicitly say so. According to the statement, this influence allows India to maintain a stronghold over Sri Lanka’s energy resources, further complicating the nation’s efforts to become self-reliant.
The statement alluded to a broader political struggle in which Sri Lanka’s future presidents might continue the trend of allowing foreign powers like India and China to exploit the country’s resources. This cycle, HERD argues, would only worsen Sri Lanka’s economic challenges, including poverty and hunger, while making the rich richer and the poor poorer.
HERD’s warning comes at a crucial time, with the presidential election potentially deciding the direction of the country’s energy policies. The statement emphasized that decisions made in this election could have long-lasting impacts on Sri Lanka’s sovereignty and its control over natural resources. It also criticized the handling of recent events, such as the controversial salary increase for Electricity Board employees, which HERD sees as an attempt to placate protests and opposition within the energy sector. This move was portrayed as being part of a broader strategy to maintain the status quo and continue the transfer of resources to foreign entities.
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