Ad hoc decisions and new investments

President Anura Kumara Disanayake this week directed authorities not to proceed with new wind power projects on Mannar Island without securing the consent of residents, following public concerns over environmental and social impacts.

The President’s decision was conveyed by Cabinet Spokesman Minister Nalinda Jayatissa at Tuesday’s post-Cabinet meeting.The Cabinet in February this year awarded Hayleys Fentons Ltd., the contract for developing a 50 MW wind power facility in Mannar. This decision is after a thorough and transparent appeal process overseen by the Procurement Appeal Board (PAB).The contract has been awarded to Hayleys Fentons at the lowest tendered bid of 4.65 USD cents per unit of electricity (kWh). The 20 MW Windscape Mannar Ltd. project and the 50 MW Hayleys Fentons project, are scheduled to begin operations in December 2025 and December 2026, respectively.

The protests by residents of the area have been going against these projects. And instead of addressing their concerns, the President has informed the Cabinet that no more projects will be allowed without the consent of the local residents.

Who exactly has to secure the consent of local residents? Is it the companies developing this project or is it the local politicians in the area or is the President himself planning to secure such approval?And how exactly will this approval be secured? Will there be a vote to seek consent or will those opposing the projects be offered some inducements that are too tempting to resist?Those in Government were all flustered and angry over the 2025 Investment Climate Statement on Sri Lanka released by the US State Department. It cited inconsistency in foreign investment policies as well as unnecessary regulations, legal uncertainty, and poor bureaucratic responsiveness as reasons which discourage investment in Sri Lanka. But can anyone blame not only foreign investors, but even local investors for not wanting to do business with the Government when it changes its mind when it feels that going ahead with certain projects could cost it electorally?There is no denial that Mannar is an ecologically sensitive area and that there should be no projects that would upset the natural makeup of the area. But it was while knowing all this that the Cabinet approved the project, awarded the tender and did so without the ‘consent of the locals’ which is why there are ongoing protests now. Now there seems to be an attempt to bolt the stable door once the horse has bolted.Isn’t it the job of a responsible government to engage with the public before the start of such projects, explain to them the advantages and disadvantages of the projects, publicise the Environment Impact Assessment (EIA) reports and discuss them with the relevant parties?

None of this was done and the President awakens from his slumber and says future projects will be only after the ‘consent of the locals’ is obtained.Many Sri Lankans will remember the drama over the building of the Kandalama Hotel project with protests ongoing for months. The Government at the time overcame the hurdles, and managed to get around those who led the protests and soon some of those who vehemently opposed the project were sitting in the open veranda of Kandalama Hotel and sipping tea while taking in the view of the Dambulla Lake.The failure of successive Sri Lankan Governments has been weak governance. They buckle at the slightest show of disapproval and many projects that could’ve been beneficial to the country have even been suspended or lost for good.If the Government is serious about attracting investors, this kind of ad hoc decision will do little to build confidence.