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Projects that fell by the wayside
In 2006, the Industrial Development paper presented a Cabinet paper to implement local phosphate fertiliser manufacture. Ministers called for a comprehensive review by the Public Enterprises Reform Commission (PERC) to ascertain the proposal’s financial viability. They later approved the project as it would, among other things, will shave off average Rs 900mn off the annual import bill.
LPL drew up the papers for a SSP fertiliser manufacturing plant (capacity of 100,000 metric tons) and presented it to the ministry. It also included a facility to produce sulphuric acid. All this would have cost Rs 1.2bn in 2006 but the project didn’t materialise.
Prof Chandana Udawatte was Chairman of Lanka Phosphate at the time. He led research on the manufacturing plant, using his expertise as a chemist to create SSP using Eppawela phosphate in primitive conditions.
In 2006-2007, following Cabinet approval, feasibility studies and an environmental impact assessment were conducted. The Agriculture Ministry, which licenses all fertilisers, recommended a trial period of five consecutive seasons.
Three seasons yielded positive results and interim permission was granted. SSP was successfully used in 20 districts. The experiment cost around Rs 10mn.
Then, the trouble began. Prof Udawatta received phone calls and letters threatening him with death. The Defence Ministry gave him security detail. A formal inquiry was never done. But TSP importers stood to lose billions of rupees if the project went through.
While Prof Udawatta was undaunted, his terms as Chairman soon ended and he could no longer pursue the work.
“It was my duty as a Sri Lankan to do this service to the country,” he said this week. “We have such an amazing resource pool that is not being utilized optimally. The implementation of this project would be extremely beneficial to the country. I am confident the country’s new leaders will take it up.”
In 2017, yet another proposal was floated, raising the capital requirement for a similar facility to Rs 9bn. And in July last year, the Agriculture Ministry’s Fertiliser Advisory Committee took a policy decision to encourage farmers to use SSP instead of TSP and to pursue the manufacture of SSP using Eppawela rock phosphate. It was never done.
LPL Chairman Bandula Wellawala was not available for comment.