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Finance Minister Basil Rajapaksa greeting his Indian counterpart Nirmala Sitharaman in New Delhi before they discussed economic assistance to Sri Lanka

The Ceylon Electricity Board (CEB) also announced on Friday evening that there would be “short-term power disruptions” over the weekend and perhaps even into next week. This is because it would take at least two to three days to get the Norochcholai coal power plant, which had shut down during the blackout, up and running again. In between, there was the news that the first patient infected with the highly contagious “Omicron” variant of COVID-19 had been detected in the country and the horrific incident in Pakistan where a frenzied mob tortured and killed a Sri Lankan factory manager and then burned the body in the street.

Gas blasts

Over the past two weeks, the conversation has been dominated by explosions related to LP gas cylinders. At least a dozen people have suffered burn and cut injuries as a result of these explosions in recent days. The increasing number of such incidents being reported on a daily basis all but created a fear psychosis surrounding the use of LP gas. As more explosions and fires came to be reported, the public have become increasingly fearful of cooking using LP gas. Some have shifted to alternatives such as firewood or kerosene. But for many, these solutions are hard to come by or impractical and as such, they are forced to use LP gas despite their fears. On Friday, photographs of a housewife doing her cooking on her gas cooker while wearing a motorbike helmet for protection were widely published in the media.

It was in this backdrop that President Gotabaya Rajapaksa appointed an eight-member committee chaired by Prof. Shantha Walpola of the Moratuwa University to look into the incidents of gas cylinder related explosions. The other members of this committee are Senior Deputy Inspector General of Police Deshabandu Tennakoon, Prof. Ajith De Alwis of the Moratuwa University, Prof. W.D.W. Jayathilaka of the Sri Jayewardenapura University, Prof. Pradeep Jayaweera, Commissioner of the Sri Lanka Inventors Commission Prof. Narayan Sirimuthu, Additional Director General of the Industrial Technology Institute Dr. Sudarshana Somasiri and Senior Deputy Director of the Sri Lanka Standards Institute Sujeewa Mahagama. They have been asked to submit a report in two weeks.

The committee has already begun work, and are visiting households where gas related explosions occurred. Committee members also conducted a field visit on Friday to Litro Gas Lanka Ltd.’s main terminal at Kerawalapitiya.

A detailed article on this issue appears elsewhere in this newspaper. A main focus of the probe is whether a move taken earlier this year to change the composition of gas cylinders has resulted in the higher frequency of explosions and fires.

In April this year, Litro Gas, which holds an 80% stake in the domestic market, introduced an 18-litre “hybrid” cylinder to replace its main 12.5 kilogram cylinder. Ordinary consumers thought it was a larger cylinder — not 12.5 but 18 without realising it was only the conversion from kg to litres. Litro claimed that the new cylinder was more fuel efficient and safe, but it was soon noted that it weighed only 9.5 kilograms. The cylinder also had a higher ratio of propane gas, with 50% propane and 50% butane instead of the earlier ratio of 20% propane and 80% butane. Former Consumer Affairs Authority (CAA) Executive Director Thushan Gunawardena alleged that the change in composition increased the danger of gas leaks, resulting explosions and fires.

The change in composition of the gas was one of the concerns raised when the Ministerial Consultative Committee on Trade held a special meeting in Parliament on Wednesday (1) to discuss the gas cylinder related explosions. The meeting, chaired by Trade Minister Bandula Gunawardena and Consumer Protection State Minister Lasantha Alagiyawanna, was attended by a large number of Government and Opposition MPs, including Opposition Leader Sajith Premadasa.

Taking to Twitter after the meeting, SJB MP Harsha De Silva stated that it was confirmed that Litro had changed its gas cylinder composition to 50:50 and that a Moratuwa University expert team’s report which was submitted at the meeting showed that there was a much higher probability of a gas leak from the regulator or hose if this was the case.

Litro had withdrawn the 18 Litre cylinders due to intense public criticism after the media exposed how it was selling the cylinder at a higher price than the 12.5kg one. When questioned by the media over the matter this week, senior Litro officials insisted that the hybrid cylinder was “an experiment” and that it only involved one batch. Questions immediately arose then as to how the company thought it could “experiment” while putting people’s lives in danger and if it was needed, whether it had the permission of the Consumer Affairs Authority to do this.

The question now is what happened to the stock of cylinders with 50:50 LPG compositions once the 18 litre unit was withdrawn. Were they refilled and sent back to the market as 12.5kg cylinders and are these behind the incidents happening now? Litro is yet to explain what happened to the cylinders. And mind you, Litro is a state owned company with one of the major shareholders being, ironically, Sri Lanka Insurance, to boot.

Govt. under fire

The Government has come under fire for being slow to react to the gas-related explosions. On Friday, Consumer Protection State Minister Lasantha Alagiyawanna hosted a media briefing explaining the reason for directing the two LP gas companies to immediately stop distribution. He said tests have found that the level of ethyl mercaptan in the cylinders was far too low. Ethyl Mercaptan is used as an additive in the cylinders to warn users in case of leaks as propane and butane are odorless.

The state minister said it has been decided to stop the issuance of LPG to the market till ethyl mercaptan is increased to level 14, which is the acceptable level according to Sri Lankan Standards. Meanwhile, it has also been decided to collect samples of imported gas onboard the ship that has arrived carrying fresh LPG stocks. The Government is also requesting the Sri Lanka Standards Institute (SLSI) to regulate the gas and equipment.

Mr Alagiyawanna, however, did not provide an explanation as to how the people will have to manage once the gas cylinders in their households run out. As has been the typical of this Government over the past months, its strategy has been to provide a solution to an issue while heaping several more problems on the people.

There was, however, confusion later in the day when Laugfs Gas PLC, Litro’s competitor, stated that it had not received a directive to halt distribution and would continue to do so. The company added that the level of ethyl mercaptan in its cylinders meets with the required standard.

Litro Gas for its part has so far refused to accept responsibility for the explosions, insisting that the issues were down to “consumer negligence” or “faulty equipment.” They have been backed by some Government Ministers and MPs, who say that such incidents have happened before. They blame the media for literally “blowing the matter out of proportion.” Sri Lanka Podujana Peramuna (SLPP) MP Prof. Ranjith Bandara this week chided the media for “generalising the issue.” State Minister Sisira Jayakody, meanwhile, claimed investigations conducted so far had revealed that it was faulty equipment such as gas cookers and regulators that had resulted in the explosions.

Government ministers are peddling these claims even as the committee appointed by the President has acknowledged that the frequency of incidents reported in recent weeks is a cause for concern. According to police reports, only about 50 such incidents had been reported last year, but more than 120 incidents had been reported so far this year. The only factor that has changed over the past few months in relation to LPG is the composition of the gas cylinder itself.

Samagi Jana Balawegaya (SJB) General Secretary Ranjith Madduma Bandara said its MPs did not receive any satisfactory answers when they attended the special meeting on the Ministerial Consultative Committee on Trade. “All they did was cast blame on the public, saying it was either due to faulty equipment or public negligence.”

Commenting on the decision to suspend distribution of LP gas, the SJB General Secretary claimed though the Government had been trying hard to hide the extent of crisis while blaming consumers, the situation had become unsustainable.

He alleged that at least some victims were being intimidated by police not to move ahead with their complaints on explosions and fires. Mr Madduma Bandara said an acquaintance, whose wife had suffered burn injuries during one such explosion had told him that when police visited his house to inquire into the incident, they warned him to “settle the matter quietly” without going up against these “big companies” as it was a battle he could not win.

Power failure

As the fiasco surrounding the LP gas crisis continues, the country experienced a complete power failure on Friday due to a technical fault on the main transmission system. A similar breakdown had knocked out power to many areas in the country on Monday, though Friday’s blackout was the first time since August, last year. The island-wide blackout severely inconvenienced the public and many small businesses had to close early. Solar Power, Wind and Hydropower Generation Projects Development State Minister Duminda Dissanayake estimated the total loss from the power failure to be over Rs 1.5 billion. An investigation into what happened is underway. Perhaps, it may lead to the appointment of another committee.

Government Ministers and MPs who were at different functions were also caught up in the power failure. State Minister Roshan Ranasinghe, for instance, was making a speech during a diploma awarding ceremony in Colombo when he was cut off mid-sentence when the power went out. SJB Kalutara District MP Dr Rajitha Senaratne was holding a media briefing on the current state of the country when the power failure occurred. “This is the 21st Century. They promised us ‘Vistas of Prosperity and Splendour.’ Well, you can see the splendour now: We are all in the dark,” he quipped. Dr Senaratne, though, failed to mention that such island-wide power blackouts were experienced during the Yahapalana Government as well.

Power even briefly went out in the Parliament complex during the Budget debate. SJB Kurunegala District MP Thushara Indunil was in the lift reserved for MPs with SLPP Kalutara District MP Lalith Ellawala when the power went off, leaving them trapped inside for nearly 20 minutes until staff managed to free them. Chief Government Whip Johnston Fernando requested Speaker Mahinda Yapa Abeywardena to launch an investigation into the power outage in Parliament, pointing out that the CEB is responsible for providing uninterrupted power to the complex. MPs don’t like to lose power, after all.

CEB General Manager M.R. Ranatunga, meanwhile, suggested that the power failure could be “sabotage” and appeared to link it to the ongoing work-to-rule trade union action initiated by the CEB Engineers’ Union (CEBEU). He claimed engineers from the union were being lethargic in taking steps to immediately restore power.

CEBEU President Saumya Kumarawadu firmly rejected the accusations during a news conference held later in the day. He said the breakdown was a result of a large-scale transmission failure and added that the union had suspended their work-to-rule campaign to deal with the situation and also after getting a favourable response from President Gotabaya Rajapaksa to their demands.

Those demands include scrapping the controversial deal with US-based New Fortress Energy (NFE) on the Yugadanavi power plant. The CEBEU is among those that have already filed Fundamental Rights petitions with the Supreme Court over the agreement. Mr Kumarawadu told the Sunday Times that the union had been forced to escalate trade union action owing to Government insistence on moving ahead with the agreement and measures taken by the CEB management to “punish” union members.

“We decided to step back from attending to breakdowns that occur after 4.15pm because the CEB management sent two of our members on compulsory leave. They were initially given transfer letters but the union advised them not to accept those letters. Thereafter, the officers were sent on compulsory leave,” he claimed.

The CEBEU President alleged that the two engineers were being penalised because they had done their duty steadfastly and refused to bow to political pressure. “What happened is totally unacceptable. It has come to a point where working according to the law is considered a punishable offence.”

He claimed certain parties within the CEB and the Government are trying to change the Electricity Act and break up the CEB. “They are also trying to scrap the tender process for renewable energy projects as it has brought down the cost of renewable energy purchases considerably and prevented interested parties from making underhand deals,” he stressed.

Mr Kumarawadu pointed out that the union had not resorted to a general strike since 1996. “We haven’t done that since we know the devastating consequences that such a strike will bring. That is why we are intensifying our trade union action step by step. None of our members wants to go for a strike either, but this is about the country’s energy security and the future of the CEB,” he remarked. While the trade union action is suspended for now, the union has left the door open for renewing it, depending on the outcome of an upcoming meeting with President Rajapaksa.

Basil in India

Amidst these developments, Finance Minister Basil Rajapaksa concluded a two-day visit to New Delhi where he sought Indian assistance to help mitigate Sri Lanka’s current economic crisis. This was his first overseas visit after he assumed the Finance Ministry portfolio in July and an unprecedented one where a Finance Minister left to another country in the midst of a budget debate seeking a loan. Mr Rajapaksa met External Affairs Minister S. Jaishankar and Finance Minister Nirmala Sitharaman for a joint meeting that was also attended by Finance Ministry Secretary S.R. Attygalle and Sri Lanka’s High Commissioner Milinda Moragoda and Deputy High Commissioner Nilanka Kadurugamuwa. He also met India’s Petroleum & Natural Gas Minister Hardeep Singh Puri, who served in India’s mission in Sri Lanka in the 1980s, and National Security Advisor Ajit Doval, a friend of President Rajapaksa.

A statement by Sri Lanka’s High Commission in New Delhi said the two sides discussed “four pillars for short and medium-term cooperation.” One pillar involves providing a food and security package on an urgent basis that would envisage an extension of a line of credit to cover the import of food, medicines and other essential items from India to Sri Lanka. Among other agreements that were reached is to provide an energy security package that would include a line of credit to cover import of fuel from India, and an “early modernisation of Trincomalee Tank Farm,” the High Commission stated.

India has also offered a currency swap to help Sri Lanka address the current balance of payment issues. Sri Lanka has also given a commitment to facilitate Indian investments in various sectors in the country.

“It was agreed that modalities to realise these objectives would be finalised early, within a mutually agreed timeline. Minister Rajapaksa and Ministers Sitharaman and Jaishankar agreed to open direct lines of communication and to be in direct and regular contact with each other in order to coordinate the above initiative,” the statement said.

Neither did India’s External Affairs Ministry nor its Finance Ministry, however, issued any media statements on the outcome of the meetings.

India has been keen on developing the Trincomalee oil tank farm for years and trying hard to push the agreement through. The matter is certain to face strong opposition from trade unions.

India is also trying to push through its projects on the ground in Sri Lanka amid uneasiness over the Rajapaksa Administration’s close relationship with China. It had earlier objected to the Government decision to award a contract to build hybrid solar power plants in northern islands of Nainativu, Delft or Neduntheevu, and Analaitivu to the Chinese firm, Sino Soar Hybrid Technology, raising concern over the closeness of the power plants to the Tamil Nadu coast. Instead, India offered to execute the same project with a grant of USD 12 million.

This week, Sino Soar Hybrid Technology, inked a similar agreement with the Maldives Government to build solar power plants in 12 islands in the Maldives. The Chinese Embassy in Colombo could not resist taking a shot at India over the matter when it tweeted stating, “Sino Soar Hybrid Technology, being suspended to build Hybrid Energy system in 3 northern islands Flag of Sri Lanka due to ‘security concern’ from a third party, has inked a contract with Maldivian gov’t on 29 Nov to establish solar power plants at 12 islands Maldives”. It was also an indirect message to Sri Lanka that she is not ‘the only girl on the beach’, so to say.

As the two regional superpowers try to push their agendas in the country through amidst the severe economic crisis, President Gotabaya Rajapaksa yesterday flew to Abu Dhabi to attend the Indian Ocean Conference (IOC) hosted by the United Arab Emirates (UAE). Among others, he is also due to meet Indian External Affairs Minister Jaishankar during the conference. Former Prime Minister Ranil Wickremesinghe has also been invited to participate. This triggered speculation that Mr. Wickremesinghe was to join the Rajapaksa Government along with the United National Party, something that was swiftly denied by the party.