The Department of Natural Sciences at the University of Agder (UiA) is working to introduce a more environmentally friendly solution for Sri Lanka to replace petrol as there is a great demand for fuel in the crisis hit island nation ” scientist Alfred Christy of the University said.
He and his colleague Souman Rudra from the Department of Engineering Sciences at UiA are working together with colleagues at the University of Jaffna to develop a product that can be used in the engines of the typical three-wheelers in Sri Lanka.
“In Sri Lanka and neighbouring countries, there are many motorised three-wheelers, also called rickshaws. From an environmental point of view, it is important to get the engines of these vehicles over to a more environmentally friendly fuel,” Christy says.
Renewable and more environmentally friendly fuels are often called biofuels and are made from biological material. The product the researchers are developing is a plant-based oil mixture consisting of bioethanol and castor oil.
Bioethanol is produced from corn or sugar cane, while castor oil is obtained from the seeds of the castor plant and is extracted by cold pressing. The mixture has been named ‘Casahol’
“What we see is that these two products together provide a lubricating oil with unique properties,” Christy says.
Research colleagues at the University of Jaffna recently conducted the first tests on a four-stroke motorcycle engine.
“The biofuel burned completely, and the oil mixture provided the lubrication the engine needs so as to avoid damage. This makes us optimistic about the development,” Christy says.
Both Christy and Rudra are pleased with the positive results from the first phase of the project. In the autumn, two students from Jaffna, Sri Lanka, will come to UiA to continue working on the biofuel project.
“The students are already involved in the project in Sri Lanka and are coming here to explore it further,” Christy added
The students will be at UiA for three months. Christy and Rudra plan to research and test the oil mixture on various engines here in Norway. Both snowblowers and lawn mowers in Norway have similar engines to the three-wheelers in Sri Lanka.
When the students return, they can transfer the skills and knowledge gained and the method used and continue the testing on Sri Lanka’s rickshaws. The project goal is also to commercialise the product they develop. According to Christy, there are great opportunities for commercial partners.
Sri Lanka is facing a severe food shortage as authorities are yet to find solutions to the food shortage citing the dollar crisis as the reason behind not being able to find a solution to the issue.
Very soon there will be no food items in the market for people to buy. Even now there are some essential food items which are not found in the market because of the lack of dollars which is needed to release the imported food stocks stored in vessels stuck at the port. People are forced to live amidst these problems, local market sources revealed.
A meal of fish and rice has become a luxury for the average Sri Lankan family eager to maintain a diet rich in animal protein.
Diesel for fishing vessels is now more costlier and so is fishing gear, largely imported. These rising costs for the fishing industry mean, the catch brought ashore is limited and prices keep rising at the wet markets and in supermarkets.
“We are waiting for the new government to look into our plight. The fuel price increase and the shortage of diesel are frustrating. Many are not going out to sea,” complains Dinesh Suranjan Fernando, the secretary of the All Ceylon Fisher Folk Trade Union.
We spend days waiting for diesel and then leave disappointed. Some pay a higher price to get diesel. So the catch needs to bring in more value. Even the cheapest saalaya (sardine) is sold for Rs. 90 a kilo is now Rs. 300.’’The rise in prices of fishing equipment adds to the landed cost of fish.
“Fishing nets that were Rs. 65,000 earlier now cost Rs. 120,000. Outboard engines that were sold for Rs. 250,000 each are now Rs.500,000. Most of the equipment is imported from Thailand, India and Taiwan,’’ a fisherman said.
According to Department of Fisheries statistics the annual marine fish production is 415,490 metric tons. The country has a marine fleet of 48,976 including 4,885 multi-day trawlers. With 64,000 marine fishing households, 2.7 million people depend on fishing and related livelihood in the country.
The price of deep sea fish such as snapper, tuna, seer fish (thora), paraw, thalapath (sailfish) continue to soar. A kilo costs Rs.1,700 to Rs 2,200 in the wet market. In supermarkets, the price range is Rs. 2,300 to Rs 3,000 per kilo.
Some families say they buy the costlier fish for special occasions, while resorting to Indian mackerel, linna or saalaya for a daily meal.
There is a scarcity of certain essential food items already such as garlic, onions, mung beans, cowpea, chickpeas, dhal, coconut oil, milk powder, dried fish, fish, meat varieties, corn, wheat flour and rice. E
Even if they are imported, given the prevailing dollar crisis, their prices keep increasing daily. A kilo of mung beans is 1000 rupees whereas rice costs more than 200 rupees a kilo. Coconut oil costs around 800-1000 rupees and a kilo of dhal has increased to 600 rupees.
A kilo of imported milk powder costs around 2000 rupees. With the recent price hike of wheat flour, a loaf of bread costs 150 rupees. The problem however is the lack of essential food items despite price hikes.
Traders and importers increase prices of food items daily claiming that the rupee has depreciated against the dollar. The Consumer Affairs Authority (CAA) and the responsible state authorities turn a blind eye to these matters.
There is a scarcity of food items in shops around the country. People are queuing up in search of food. The concession package of essential food items given for the new year through Sathosa did not contain the food items people needed. Against this backdrop a severe scarcity of essential food items IS now prevailing heavily.
Cassandra is a proud migrant, a pastry chef, an advocate for essential workers and the Federal Labor Candidate for Holt.
She came to Australia with her family when she was 11, and she has called Melbourne’s South-East home ever since.
Having made this journey, her parents taught her to never take anything for granted and instilled three values that she has upholds to this day: hard work, commitment and gratitude.
Her parents taught her that she was entitled to a fair day’s wage for a fair day’s work as well as the importance of being committed to the community.
She began working at Woolies Dandenong Plaza as a teenager, and spent almost 15 years baking, stacking shelves and making lifelong friends.
She now represents workers in the retail and fast food industries, fighting to improve the pay and conditions of my former colleagues—essential workers who have worked tirelessly throughout the pandemic.
She has also volunteered to tutor migrants and refugees from non-English speaking backgrounds so they can make the best of every opportunity.
Her parents also taught her to be grateful—to her community and to Australia—and never miss an opportunity to repay the gratitude.
She decided to become the Candidate for Holt because she knew that only a Labor Government can deliver a better future for Holt—a future in which families like hers are not held back or left behind.
The Government of India has decided to reduce the tax rate on fuel to control rising inflation. Accordingly, the price of a liter of petrol has been reduced by 9.50 Indian rupees and the price of a liter of diesel by 07 rupees.
Indian Finance Minister Nirmala Seetharaman says the reduction in fuel prices will cost the Indian government a trillion rupees.
Meanwhile, relief has also been provided to gas consumers. Accordingly, Indians will be able to purchase 12 gas cylinders at a concession of Rs. 200 per year.
The Indian government will lose 61 billion Indian rupees as a result of this subsidy.
The house of the owner of an IOC filling station in the Ipalogama area in Kekirawa has been set on fire by a group last night (21).
According to the Ipalogama Police, a group who had gone to the filling station to obtain fuel had become angry after running out of fuel and had set fire to the owner’s house.
The house was set on fire in the Ipalogama Thilakapura area. The fire had started when the power supply was cut off last night and it is said that the wife and two children of the filling station owner were at home at that time.
Neighbors and police put out the fire and it was reported that all the books of the two school children had been destroyed by the fire and one of them was scheduled to sit for the GCE Ordinary Level examination this time.
Once known for its dynamic food, music and culture, Lebanon is now in the midst of the worst economic crisis in modern history. With no clear resolution in sight, the country is experiencing rolling blackouts, a shortage of food and a monthly inflation rate of 56%. The Lebanese Lira joins a list of dozens of failed fiat currencies including the Venezuelan Bolivar, the Zimbabwean Dollar and Argentinian Peso.
TOPSHOT – A protester holding the Lebanese flag runs as protesters block the Jounieh Tripoli highway … [+] AFP VIA GETTY IMAGES
A small middle-eastern country with a population of only 5 million, Lebanon takes pride in its emigrant community with countless families in Canada, U.S. and Britain. The Lebanese diaspora is estimated to be about three times the size of the Lebanese population back home.
Many expats were able to find success abroad, bringing pride to Lebanon. Some notable Lebanese figures include writer Nassim Nicholas Taleb, barrister Amal Clooney, actress Salma Hayek, singer Shakira, billionaire Carlos Slim and former Chairman of Fox Broadcasting, Lucie Salhany. Each year, Lebanese expats visit their homeland and infuse billions of dollars to keep the economy liquid.
An Import-Based Economy
In 1997, the Central Bank of Lebanon pegged the Lebanese Lira to the U.S. dollar at 1507 to 1. Over the last two decades, the stability of the Lebanese economy depended on a fixed exchange rate to the U.S. dollar.
Currency stability encouraged expats to continue to send money home, buy property and even deposit cash in local banks. It is estimated that Lebanese abroad sent remittances worth up to 12.5% of Lebanon’s GDP, keeping the economy afloat. The dollarization of Lebanon contributed to its growing wealth divide, where Lebanon’s top 1% earned 25% of the country’s GDP, making it one of the most unequal economies in the world.
Lebanese Banking System
Revenue into Lebanon began to dry up due to upheaval in neighboring Syria, which pushed officials to engage in creative financial engineering to keep the Lira stable. To maintain an illusion of stability and incentivize deposits, banks offered interest rates as high as 14%, which in turn required more deposits to pay the high interest rates, creating a Ponzi scheme.
It took a while for people to notice the scam, however. Entering 2019, pressure on the Lira-Dollar peg continued to increase. Riad Salameh, head of the Central Bank of Lebanon, issued an order requiring all money transfer offices, such as Western Union and MoneyGram, to pay cash out in Lira rather than dollars, even where transfers were specifically denominated in dollars. This was the first red flag of a looming currency crisis.
Lebanese protesters gather outside a money transfer service provider calling on him to close his … [+] AFP VIA GETTY IMAGES
Over the next few months of 2019, the demand for dollars continued to rise. Currency exchange booths and banks had an influx of retailers and individuals wanting to buy dollars. Merchants also needed larger amounts of dollars to cover imports, putting additional pressure on the peg.
Since the Lira was officially pegged at 1507 to 1, a black market for dollars began to form, allowing purchases of dollars at a higher price. But this was still the calm before the storm.
In August 2019, Fitch downgraded Lebanon’s credit rating from B- to CCC. A few weeks later, Jammal Trust Bank was forced to liquidate itself after being hit by U.S. sanctions for allegedly helping to fund Hezbollah. The bank had 25 branches in Lebanon, creating a huge blow to the Lebanese banking system. In the background, Lebanon started printing more Lira, but many had not yet noticed.
Protests
On October 17th, 2019, protests were set off by a proposed tax on WhatsApp phone calls. This was ‘the straw that broke the camel’s back’, as the protests were fundamentally about decades of corruption as well as Lebanon’s sectarian political order.
TOPSHOT – Lebanese demonstrators raise a new giant sign of a fist that bears the Arabic word … [+] AFP VIA GETTY IMAGES
Lebanon’s political system is a complicated balance of power sharing and sectarian quotas for the country’s various religious groups consisting of Shia and Sunni Muslims, Druze, and several Christian groups. The formula and quotas to maintain peace between these different groups extend to everything from allocation of public funds to entry-level jobs. This system prolonged a divisive atmosphere in Lebanon, making it a battleground for many of the ideological conflicts of the Middle East.
For a first-hand account, I sat down with Lebanese-Canadian actress Sarah Himadeh, who by a twist of fate became one of the leading activists during the protests last year. Her family originally fled Lebanon during the 80s. She recounts her experience of the protests:
“I was visiting my sick grandmother back in Lebanon last October and the protests started the day before I was supposed to head back to LA. I knew that this was a transformative moment for my country and there was no way I was going to leave. There was no way I wasn’t going to stand for my country, there was no way I wasn’t going to stand for a unified Lebanon. They say October 17th 2019 is the official date of the end of the civil war, because this was the first time we, all the Lebanese, from all factions came together. Martyr Square in Beirut was the most inspired and inspiring place in the world that day. And for months to follow. I’ll never forget it.
The Lebanese diaspora don’t necessarily want to be scattered all over. We don’t necessarily want to live in Toronto, New York, LA, London, Paris or Dubai. We want to live in the Lebanon we all long for. In its mountains, and on its shores. In an incorruptible and secular Lebanon. That’s where we want to live. And that’s what we were fighting for.”
Sarah Himadeh and friends in Martyr Square protesting for Lebanon. SARAH HIMADEH
Peaceful protests continued for months. The government cut power almost daily to its communities, but the Lebanese spirit could not be tamed as protesters danced in the streets. Lebanese Prime Minister Saad Hariri resigned, but the people wanted more sustained change.
Protests were eventually paused by the COVID-19 pandemic. Although quarantine provided some much needed relief from the streets, it further exacerbated the economic conditions in Lebanon. Many emerged from quarantine with no job prospects and no funds to buy necessities. As Lebanon runs out of fuel, citizens experience blackouts up to four days a week. And with a shortage of dollars to import grain and meat, Lebanon is facing famine.
TOPSHOT – A Lebanese woman stands next to her empty refrigerator in her apartment in the port city … [+] AFP VIA GETTY IMAGES
Currency Crisis and Hyperinflation
As Lebanon’s economic unrest continued, those holding Lira rushed to buy dollars, driving the black market exchange rate as high as 10,000 Lira per dollar, up from the official peg of 1,507, devaluing the currency by 85%.
Banks began to limit withdrawals of U.S. dollars, first to $300 and then to none at all. Merchants started to refuse to take payment by cards for fear that banks would not honor the payments.
At a time when the pandemic already left so many with a shortage of food, food prices soared. Where 2 pounds of red meat used to go for $9 dollars, the same amount would now cost $43 or 65,000 lira. People lined up in front of bakeries and butcher shops, hoping to buy goods before prices rose the following day. But prices did continue to rise, and the Lebanese government continued to print more Lira. At the time of writing, the exchange of Lira to Dollar on the black market is 10,000 to 1.
(COMBO) This combination of pictures created on June 29, 2020 shows the black market rate, as … [+] AFP VIA GETTY IMAGES
Some political leaders proposed that the crisis presented an opportunity for Lebanon to take charge of its own food supply and develop its own agricultural industry. But farmers could not afford to build a new infrastructure, to buy seeds, fertilizers or other chemicals needed for crops.
On June 11, 2020, protestors in Tripoli, Lebanon’s second-biggest city, threw petrol bombs at the central bank, setting it on fire.
Where does Lebanon go from here?
Lebanon cannot begin to rebuild its country without establishing a new monetary system, the backbone of every society. Waiting for the government to introduce a new national currency without regained trust in authority is futile. The people of Lebanon, however, have three other options to rebuild their economy without waiting for a government rescue.
Sarah Himadeh inside the Egg theatre leading a team to pick up and recycle garbage. In just 2 weeks, … [+] SARAH HIMADEH
1. Commodity Money
Money does not need to be the paper we are used to seeing in our wallet. Money can be anything that serves as a store of value, unit of account and a medium of exchange. Money is how our communities trade within themselves and with others. To accomplish domestic exchange, Lebanon could use any commodity they trust from grain to gold. An example of this method in modern history is Post-WWII Germany which briefly defaulted to using cigarettes as money for trade of basic necessities within communities, as cigarettes always have a predictable value. A stable unit of account such as grain, gold or even cigarettes, allows residents to buy food for their families, store keepers to receive a fair price for goods, and workers to earn a stable wage.
2. Dollarization
Lebanon cannot sustain itself as a closed economy, as it heavily relies on foreign imports of grain, meat and oil. Therefore, it needs to use a currency that is easy to spend across borders.
In 2009, after a similar wave of hyperinflation, Zimbabwe adopted dollarization, effectively abandoning its own currency and adopting the U.S. dollar as its main currency. This measure was in effect until 2019, when the country reintroduced a new Zimbabwean dollar. This is a tried-and-true formula of using a ‘safe haven’ fiat currency as a substitute, especially for countries with significant dollar-based debts and imports.
Adopting the dollar poses two main problems. The first is it gives ultimate control of your future over to the stability of America, a country known for bending political powers to its will through sanctions. The second is that there are simply not enough dollars to go around. The COVID-19 pandemic created an unprecedented shortage for U.S. dollars globally, now used in over 80% of all global trade. With an already rising black market for dollars in Lebanon, driving demand for dollars further seems like the wrong direction.
Furthermore, there are many expat families who want to send money to their families in Lebanon, but cannot do so in dollars, as the dollars are being confiscated by banks and money exchanges. Those who do get their hands on dollars are much more likely to hoard them than to spend them within their communities, further constraining the economy.
3. Bitcoin
Proponents of digital currencies have long advocated that Bitcoin is tailor-made for these types of economic situations. For the newbs, Bitcoin is a digital store of value which anyone can use on their smartphone or computer. It is independent of governments, has a fixed supply (and therefore is not at risk of inflation), is not controlled by banks or other entities, and cannot be taken from you, unless you share the key to your digital wallet. It is also easy, fast and cheap to send to others across borders and locally.
Bitcoin is the currency of the people, effectively removing it from the grip of a corrupt government. Sounds far fetched? It’s not. Bitcoin is already being used as an insurance policy against corrupt governments in countries such as Cyprus, Ukraine, Venezuela, and El Salvador.
Venezuela provides a blueprint for cryptocurrency adoption. After undergoing its own currency crisis, it is now widely accepting crypto in over 20,000 small and large businesses. Just like Lebanon, Venezuela too was highly dependent on the U.S. dollar, which perpetuated its economic demise, giving too much power to its American counterparts.
The biggest challenge to switching entire communities to Bitcoin continues to be education.
“Majority of us are still in denial of the financial collapse. People are not looking for any alternatives to the current financial system. Education and awareness are key points in bitcoin usage and adoption. We need to teach people to trust this new thing they have never used before. How to get it and then spend it. There is a strong possibility that the Lebanese diaspora will infuse Bitcoin by sending to families directly, as they do not trust the remittance system,” says Marcel Younes, founder of Bitcoin du Liban.
There are wealthy expats who want to send money to Lebanon to help, but are unsure of how to do so safely and productively given the current infrastructure issues with banks and remittance shops. Using Bitcoin, families and donors abroad can send funds directly to those who need it, without undergoing any government scrutiny.
Once Bitcoin is within the communities of Lebanon, it can be used to trade within Lebanon for basic goods and services. Alternatively, it can also be used to pay for imports coming into the country, since Bitcoin can be sent and accessed anywhere in the world and converted into either dollars, or digital dollar-backed stablecoins.
Digital currencies provide the key to communities asserting their independence and taking control of their future, away from the corruption of governments.
It remains to be seen which path Lebanon will choose. One thing is clear after months of protests – the Lebanese are some of the most dedicated and most vibrant people in the world, and have the strength to overcome this period in history and thrive again.
A Lebanese child is pictured in Beirut’s Martyr Square during a gathering on Lebanon’s Independence … [+] AFP VIA GETTY IMAGES
Minister Kanchana Wijesekera says that if Patali Champika Ranawaka, who is in the Opposition, joins the government and assumes the post of Minister of Power and Energy, he is ready to resign from the post at any time.
Wijesekera stated that it would be very good if Patali Champika Ranawaka takes over the ministry post.
Kanchana Wijesekera stated this addressing a media briefing held in Colombo yesterday (21).
It is reported that a Treasury bill auction worth Rs. 90,000 million will be held on May 25.
Accordingly, bills of Rs. 45,000 million maturing in 91 days, Rs. 22,500 million in bills maturing in 182 days and Rs. 22,500 million in bills maturing in 364 days will be auctioned.
Sri Lanka’s new administration headed by Prime Minister Ranil Wickremesinghe is gearing up to present a new, relief-based budget, around next month, replacing budget 2022 – for the first time in history since independence.
The Finance Ministry will prepare the new relief budget as the previous budget for the fiscal year 2022 has become unrealistic and unproductive at this critical moment of economic crisis coupled with recession and social unrest, ministry sources said.
The economic mess and decrease in revenue as well as the drop in productive activity had been created as a result of the COVID-19 pandemic, subsequent lockdowns along with financial mismanagement and poor policies which affected economic growth, a former Treasury Secretary said.
An alternative budget is technically just like the full budget; it contains a complete set of accounts, including expenditure and revenue. The estimates are presented for the whole year like the full budget, he explained.
It can present revenue proposals and make major tax changes or introduce new taxes, he said adding that it is not constitutionally prohibited.
Almost all the budget estimates, revenue and expenditure proposals have become unrealistic and impossible to achieve under the present socio-economic crisis.
According to the details given in budget 2022, revenue is expected to grow by 46 per cent to Rs. 2.3 trillion in 2022. Several new taxes and tax increases in surcharge tax on profits, social security contribution, and financial VAT were proposed in this regard.
Even if the projected contribution from the new revenue measures (Rs. 333 billion) is considered realistic, the rest of the revenue base would need to grow by 24 per cent in 2022 – at least double the expected nominal GDP growth – to achieve the revenue target, a senior Treasury official disclosed.
Therefore this estimated revenue growth of 46 per cent was unrealistic and cannot be achieved under present man made economic crisis situation, he added.
It has now become a mission impossible to make relatively high allocations for defence, road development, and generally high levels of capital expenditure over allocations for education, healthcare and skills development proposed in the budget 2022, he said.
The expected real revenue forecast for this year is Rs.1.6 trillion compared to the estimated revenue of Rs.2.3 trillion in budget 2022, Finance Ministry data shows.
The new administration is taking action to increase the borrowing limit to Rs. 4 trillion from the present credit limit of Rs. 3.2 trillion. This proposal will be presented in parliament for its approval soon.
The former (Mahinda Rajapaksa) -led government has spent Rs. 1.95 trillion by the second week of May and the cash balance for the rest of the year is Rs. 1.25 trillion. It has been observed that budget 2022 has failed to focus on the management of external debt, the lack of a clear plan to regain access to international capital markets, and the related implications for dollar liquidity in the banking system.
It is reported that the Government Medical Officers’ Association (GMOA) will escape the control of the infamous Dr. Anuruddha Padeniya’s group after 12 years.
It is said that Padeniya and his team have informed that they will not contest the GMOA election this time, allowing for a new administration.
Sources said that they have decided not to contest the election as they know that they will face an utter defeat if an election is held.
During the tenure of Anuruddha Padeniya as President, the GMOA was heavily politicized and in recent times they have become visible to the public as a profession affiliated to the SLPP. At the same time, the GMOA was notorious for its arrogant activities.
The country also remembers the actions of Anuruddha Padeniya, the President of the Government Medical Officers’ Association, as one of the most powerful figures behind the ban on chemical fertilizers, which is wreaking havoc on the country.
However, some doctors who were part of the Padeniya group will also hold positions in the new administration, but doctors say there is hope for change.
