Winds & Rains inevitable but Opportunities in 2024! – By Prof. Samitha Hettige

January, 4, 2024

The Value Added Tax (VAT) imposed to prevent social conflicts in the long run is creating conflicts at the lower levels of the society. Attempts to block the increasing of state revenue (especially in a welfare state) may indicate many intentions. While the silent majority is struggling to adjust for a ‘Collective Sacrifice’ few seems to be using the VAT to create conflicts. Those who might remember the 30 year war which ended in 2009 may remember that Sri Lankans payed the ‘Defense Levy’ on top of VAT to fund their attempts to kill each other. The power & energy sector can play a pivotal role to increase state revenue in the short run with the Sun, Winds & Rains (available in abundance). If so, the silent majority might agree to pay not only the ‘Pay As You Earn’ tax (PAYE) but all other taxes charged from those involved in power generation as in the past.

Promoting clean energy production is important & below is the latest lesson from the Chinese engineers to energize Chinese people. World's largest ‘Ultra High Altitude’ wind power project (at an altitude of 4650 meters) commenced power generation in Nagqu, Seni District (Xizang Autonomous Region) on first day of 2024. Engineers consider a plant at an altitude of 3500 to 5500 meters as Ultra High. With 25 wind turbines scattered in approx. 140,000 square meters, the project is expected to provide 200 million kilowatt hours (kWh) annually to approx 230,000 population living in Nagqu (Ref. China Energy).

Energize the people.

The Chinese leader in his New Year address had stated that China's ultimate goal is to deliver a better life for the people. 2024 is special for China as it passes its 75th milestone towards building a ‘Xiaokang’ society (A moderately prosperous socialist society). Referring to the COVID pandemic President Xi has said "Having weathered the storm, the Chinese economy is more resilient & dynamic than before,”

With the Belt & Road Initiative, China has signed more than 200 agreements with over 150 countries & more than 30 international organizations. Sri Lanka is among those. From 2013 till to 2022, trade between China & BRI partner countries amounts to approx 19.1 trillion USD. Those activities have so far recorded an annual growth rate of approx 6.4% (Ref China stats). Sri Lankans struggling to come out of the economic crisis should pay attention to these opportunities. They seem to be realizing that they created the crisis by electing those who promised free gifts while isolating them from the world with racist policies. The responsibility of coming out of the crisis therefore falls on the people. 2500 year written history indicates that Sri Lankans have adjusted to face difficulties to prevail.

"The people are the ones we look to when we fight to prevail over all difficulties or challenges,"

Xi Jinping.

(Views expressed are personal)