Journal Articles

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Contains papers published by IPS staff in local, regional and international learned journals.

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19th Climate Change Conference: An Assessment
(2022-11-03) Wickramasinghe, Kanchana
COP19 could not come up with an effective and comprehensive set of elements necessary for the international agreement to be prepared in 2015 and implemented in 2020.
Book Review: Bina Agarwal, Gender and Green Governance: The Political Economy of Women's Presence Within and Beyond Community Forestry
(New Delhi: Sage, 2011) Wickramasinghe, Kanchana
In the vast literature on a range of dimensions of forest governance, the facet of gender has received meagre attention. In addition, the nexus between women’s presence and forest governance has been less established through rigorous analysis. Moreover, in the gender and governance literature, the issues addressed are limited in range and there is a lack of empirical verification. In this context, the book titled Gender and Green Governance: The Political Economy of Women’s Presence Within and Beyond Community Forestry can be viewed as an immense, novel contribution to the literature and a milestone in the ongoing debate on forest governance, gender, rural energy and political economy. The study is based on a comprehensive quantitative and qualitative assessment using the information collected through the author’s extensive fieldwork in selected areas of India and Nepal.
Book Review: Sustainable Energy in Developing Countries: Policy Analysis and Case Studies
(New Delhi: Sage, 2007) Wickramasinghe, Kanchana
Energy is central to sustainable development and poverty reduction efforts and affects all social, economic and environmental aspects of development. The main objective of this book is to contribute to the resolution of many current energy and environmental policy issues by an objective analytical approach using the tools of environmental economics and cost benefit analysis.
Changing role of non-timber forest products (NTFP) in rural household economy: the case of Sinharaja World Heritage site in Sri Lanka.
(Springer-Verlag, 2003-11) Senaratne, Athula; Abeygunawardena, Piyasena; Jayatilake, Wijaya
This paper examines the modified patterns of utilizing non-timber forest products (NTFP) and associated behavioral changes around tropical forest areas in the context of conservation-related objectives and other commercially driven objectives. Our study introduces a conceptual framework based on the household production theory and tests empirically the hypotheses drawn at Sinharaja World Heritage in Sri Lanka. The results show that conditions introduced by forest conservation programs and the spread of small-scale commercial tea cultivation are transforming the economy around Sinharaja. The process is an economically rational one where resident communities decide upon their actions based on the opportunity cost of time involved with NTFP in the absence of observable prices. Although the process, overall, has led to a decline in the role of NTFP in the household economy, its impact over different NTFP are not uniform, leaving sustained demand for certain NTFP. This situation calls for a multifaceted approach in forest management programs to address the various household needs fulfilled by NTFP-based activities.
Conserving Ecosystem Services and Harnessing the Economic Potential of the Bar Reef
(Department of Wildlife Conservation, 2014) Wickramasinghe, Kanchana; Senartne, Athula; Rajasuriya, Arjan
Despite the efforts being made to conserve the Bar Reef, it has come under threat due to growing economic activities in Kalpitiya area. Traditionally, fisheries in the lagoon and surrounding coastal areas were the major livelihoods of local people. In addition limited number of people engaged in diving and collection of sea cucumber, chanks and ornamental fish species. Beyond the coastal zone, commercial agriculture is thriving in inland areas of the Kalpitiya Peninsula. Resource exploitation has increased over the years, and presently there are large number of fishermen and scuba divers harvesting many different species for local consumption and for export. Over-exploitation of living marine resources and habitat destruction due to the use of destructive fishing methods and over-exploitation of sea food resources are major issues.
Determinants of Receipts of Environmental Awards and Certifications by Hotels: Experience from the Western Province in Sri Lanka
(Journal of Environmental Professionals Sri Lanka; Vol. 3 (2), 2014, 2014-12) Wickramasinghe, Kanchana
This paper attempts to assess the receipts of environmental awards and certifications by the hotel sector in the Western Province of Sri Lanka and the factors determining such receipts. The assessment is based on primary data collected from the 94 registered hotels in the Western Province, using a pre-tested structured questionnaire. Key informant interviews and stakeholder discussions were carried out in formulating the questionnaire. Face-to-face interviews were conducted to collect required data. The analysis was done using the Probit approach. It shows that nearly 19 percent hotels in the sample have received environmental awards and certifications. According the econometric results, chain affiliation and the luxury level of the hotels are significant determinants of receipts of environmental awards and certifications.
Ecotourism as a Tool for Sustainable Forest Management in Sri Lanka
(Journal of Environment Professionals Sri Lanka, 2012) Wickramasinghe, Kanchana
Deforestation and forest degradation have become serious environmental issues faced by Sri Lanka. Forest management system of Sri Lanka has been based on ‘command and control’ approach, which shows a limited involvement of local communities as stakeholders in forest management. It is vital that the society sees the economic benefits of forest conservation, in order to conservation being more meaningful and long lasting. Forest-based ecotourism, a non-consumptive, market-based approach to forest utilization has received a foremost position, due to its prospective economic and environmental benefits. Through a comprehensive qualitative assessment, the study finds the key constraints and challenges in adopting ecotourism for sustainable forest management as, lack of awareness and understanding on the concept, inadequate coordination, non-compliance to principles and poor interpretation services. It highlights the need for establishing well-coordinated mechanism, assigning clear roles for relevant stakeholders, enhancing private sector participation and establishment of a certification program of ecotourism businesses
Education Participation in Sri Lanka—Why all are Not in School
(Elsevier, 2006) Arunatilake, Nisha
Despite Sri Lanka’s 1990 commitment to provide 10–11 years of free education to all, only 93% of children in the 5–14-year-old age group were in school by the year 2000. Moreover, the education participation rates are not equitable across the country, varying by socio-economic groups. This paper examines the determinants of school non-participation of 5–14-year olds in Sri Lanka using household, community and school-level information obtained from an island-wide survey. The study finds that demand side problems such as poverty, direct and indirect costs of schooling, and cultural factors as well as supply side shortcomings such as quality of education seem to affect schooling behavior of children. Policies facilitating compulsory education in the country at present gives prominence to awareness building, monitoring and improvements in education delivery. The results show that these efforts need to be complemented by other supply side improvements and income transfer measures, especially for the poorest, to achieve universal school attendance.
Energy Management in Hotel Sector in Sri Lanka: Adoption of good practices
(Ministry of Power and Energy & University of Sri Jayewardenepura, 2015) Wickramasinghe, Kanchana
Energy accounts for a major share of the operational costs in the hotel sector in Sri Lanka. For cost saving and environmental conservation aspects, proper energy management has become an important area that needs policy attention. The present paper aims to assess the level of adoption of energy management practices and to identify the determinants of such adoption. The analysis is based on primary data collected from registered hotels in the Western Province of Sri Lanka. The sample includes 78 hotels. The results indicate that, on average, hotels adopt 3.7 good energy management practices. The adoption of good energy management practices is determined by the hotel characteristics such as number of employees per room, age, chain affiliation, size and customer characteristics such as the origin and the purpose of visit. Policy attention should be particularly on motivating small hotels, independent hotels and newer hotels to adopt good energy management practices.
Environmental Management Practices in the Hotel Sector in Sri Lanka: Experience from the Western Province
(Colombo: Institute of Policy Studies of Sri Lanka, 2014-10) Wickramasinghe, Kanchana
The study intends to assess environmental management in hotels in Sri Lanka and factors affecting the adoption of environmental management practices.
Equilibrium relations in the coconut sector: an analysis of fresh nut, oil and desiccated coconut market in Sri Lanka for the period 1956-2017
(University of Peradeniya, 2020) Abeysekera, M.G.D.; Prasada, D.V.P.; Pathiraja, P.M.E.K.
The objective of this paper is to assess the equilibrium relations in the fresh nut, oil and Desiccated Coconut (DC) market in Sri Lanka with special emphasis on determining the supply and demand elasticities. To achieve this objective, the Partial Equilibrium Model (PEM) previously adopted for the Sri Lankan coconut industry was reestimated using Seemingly Unrelated Regression (SUR) method. Annual data on prices, quantities and other supply and demand related data for the period 1956-2017 were used for the analysis. The PEM captures the linkages in both production and consumption between the three markets. The results revealed that estimations are consistent with previous studies except for the income variable in demand equations for both fresh and oil markets where only the latter is statistically significant with negative coefficient indicating that oil has become an inferior good. Both the own price elasticity of supply and demand of fresh nut and oil were statistically significant with comparatively lower magnitudes whereas it was significant and higher in the DC market. When compared with the previous studies, the findings of the present study revealed that the magnitudes of the supply and demand elasticities in all three coconut markets have changed over the past decade and implications of those changes are further observed in the changes of directions of supply and demand relationships. Therefore, the coconut market model may also be extended further by incorporating other important sub-sectors as well.
Labour migration in South Asia lessons from covid 19
(2020) Weeraratne, Bilesha
Out-of-pocket expenditure in accessing healthcare services among Chronic Kidney Disease patients in Anuradhapura District
(The Sri Lanka Medical Association, 2017-06-13) Senanayake, S J; Gunawardena, N S; Palihawadana, P; Bandara, S; Bandara, P; Ranasinghe, A U; Karunarathna, R H; Kumara, G P
Chronic Kidney Disease (CKD) has significant economic impact on both patients’ households and the country. To assess the out-of-pocket (OOP) expenditure of accessing health services among CKD patients in Anuradhapura District This community based cross-sectional study included a representative sample of 1174 registered CKD patients from all 19 Medical Officer of Health areas in the District of Anuradhapura. Trained para-medical staff visited the households and administered an interviewer administered questionnaire to gather information. A total of 1118 CKD patients participated. Mean age was 58.3 (SD 10.8) years. Fifty nine (5.3%) patients had been hospitalized during the six months preceding data collection. The total OOP for a hospital admission for one patient was Rs. 3625 (IQR 1650-8760). Thirty eight (3.4%) patients were on dialysis. The median direct cost per patient for an episode of dialysis was Rs.595 (IQR 415-995) while the median direct cost for a dialysis patient per month was Rs.5490 (IQR 3950-10934). In the study population a total of 1095 (98.0%) had attended clinic at least once during the six months preceding the study. The OOP expenditure for a single clinic visit for one patient was Rs.434 (IQR 200-860). CKD patients living in the Anuradhapura District spent significant amounts on accessing health care which can worsen their economic hardships. Planned interventions are warranted in order to improve their quality of life and financial situation
The Political Economy of Trade Integration in South Asia: The Role of India
(Wiley-Blackwell, 2010) Weerakoon, Dushni
The South Asian regional trade integration process to date has generated only limited enthusiasm. It suffers from significant shortcomings, primarily on account of a very cautious approach adopted to achieve the ultimate objective of ‘free trade’ within the region. In turn, this has led to a fragmentation of the integration process, with some of the partners of the South Asian Association for Regional Cooperation (SAARC) bloc opting for a speedier and more liberal bilateral process with India. India’s engagement remains the critical feature as the single most important trading partner for almost all the other South Asian countries. However, the dynamics of Indian economic integration initiatives too have been changing rapidly, whereby it is looking increasingly to strengthen its economic relations with the wider Asian region. In this context, the question of India’s willingness to give leadership to carry the rest of South Asia as the bridge that connects the region to East Asia needs to be examined. The current evidence suggests that India has attempted to do so via a host of bilateral and regional arrangements, but that the divergences in strategic interests amongst SAARC countries has left Pakistan on the margins of an evolving scheme of overlapping trade initiatives in South Asia. Thus, while something approximating ‘free trade’ in South Asia appears to be taking shape, it is unlikely to take the form of an inclusive South Asian regional integration process envisaged by SAARC. [ABSTRACT FROM AUTHOR]
The price elasticity demand in the United States: a three-dimensional analysis
(2018) Abayasekara, Ashani; Burke, Paul J.
In this paper we employ a dataset of three dimensions—state, sector, and year—to estimate the short- and long-run price elasticities of state-level electricity demand in the United States. Our sample covers the period 2003–2015. We contribute to the literature by employing instrumental variable estimation approaches, using the between estimator, and pursuing panel specifications that enable us to control for multiple dimensions of fixed effects. We conclude that state-level electricity demand is very price inelastic in the short run, with a same-year elasticity of –0.1. The long-run elasticity is near –1, larger than often believed. Among the sectors, it is industry that has the largest long-run price elasticity of demand. This appears to in part be due to electricity-intensive industrial activities clustering in low-price states
Ready-made Garment Exports from Sri Lanka
(Routledge, 2009) Kelegama, Saman
With the phasing out of the Multi-Fibre Arrangement (MFA), the Sri Lankan economy, highly dependent on ready-made garment exports, has become vulnerable to the changing global trading system affecting this industry. In such a global environment, strengthening the competitiveness of the industry has become imperative for Sri Lanka if it is to remain as one of the suppliers of choice in major markets. The paper highlights the strengths and weaknesses of the industry and shows the steps that have been taken to address the latter. Additional steps taken to select specific garment products according to past performance and global positioning for further improvement and promotion are also highlighted. The paper also suggests some strategies to cope up with the new global challenges.
Realizing the sustainable development goals in the 4IR
(2019) Tilakaratna, Ganga; Perera, Janani
Role of Social Protection in Disaster Management in Sri Lanka
(2015-01-07) Wickramasinghe, Kanchana
Sri Lanka has witnessed a striking increase in both the frequency and intensity of natural disasters over the last few decades. Natural disasters have caused human, physical, fi nancial and environmental losses and made substantial impacts on the economy of Sri Lanka. The impacts of natural disasters are not homogeneous across various segments of the society. The distribution of impacts depends on the degree of physical vulnerability of a particular region to natural disasters and the socio-economic vulnerability. The poor, especially those who are dependent on natural resources for their livelihoods, such as farmers and fi shermen are highly vulnerable to the negative impacts of natural disasters. Given the signifi cant economic costs of natural disasters, disaster management issues have received high policy priority. Apart from reducing the physical vulnerability of the population, social protection systems do have an important complementary role in minimizing the effects of natural disasters. Sri Lanka is well-known to have an extensive social protection system. However, the degree to which the present system provides protection against natural disasters remains unexplored. Thus, the present study assesses the degree of protection provided by the present social protection system in Sri Lanka against natural disasters, identifi es gaps in doing so, and thereby suggests suitable recommendations to strengthen the system. The study reveals that the present social protection system in Sri Lanka is not adequate to address the socio-economic vulnerability due to external shocks created by natural disasters. All the disaster-related socio-economic measures in place are highly skewed towards immediate relief, whereas long-term economic well-being of the disaster vulnerable groups has received minor attention. The disaster insurance schemes are also not properly developed and the existing crop insurance schemes show a low coverage. Microfi nance services also do not adequately respond to the needs of the disaster vulnerable groups. The study recommends the need for making reforms in the existing programmes, thereby to suggest better protection against natural disasters without introducing new measures and increasing the complexity of the system.
Structure conduct and performance of the rice milling industry of Sri Lanka: evidence from selected cases
(2017-06) Wijesinghe, Asanka; Weerahewa, Jeevika
The rice milling industry in Sri Lanka is alleged to be characterised by imperfect competition and excessive profits. The purpose of this study was to examine the structure, conduct and performance of the rice milling industry of Sri Lanka. The structure of the industry was examined using concentration ratio and Hirschman- Herfindahl Index (H index). The conduct of the industry was examined using a Hedonic price analysis. In order to evaluate the performance of the industry, the technical efficiency of the rice millers was estimated. Marketing margins over time and across different groups of millers were also examined to test whether there was an increase in the margins between retail prices of rice and farm-gate prices of paddy as an alternative indicator to ascertain industry performance. The results of the analysis indicated that the top four firms in the sample occupied 6.30% of the market share, implying that the rice milling industry of Sri Lanka was atomistically competitive. The calculated H index of 30 also suggests that the market was competitive. Contrary to popular belief, the results of the Hedonic price analysis indicated that consumers were indifferent among brands and that none of the established brands had a significant effect on rice prices. The results of the input orientated Data Envelope Approach indicated that the mean technical efficiency of the millers in the sample was over 90% and there is no statistically significant difference in the technical efficiencies of large scale millers who possess modern machineries and that of the rest. Furthermore, there is no evidence to conclude that millers with superior milling equipment have excessive margins.
Tax avoidance strategies of multinational companies: a case study of apple inc.
(2021-12) Perera, Usha
This study concentrates on the tax avoidance strategies of multinational companies using the case study of Apple Inc. Objectives of the analysis include identifying strategies that could be exploited by multinational companies to avoid taxes and to find improvements for the Sri Lankan tax system based on the loopholes that multinational companies could exploit. The methodology consists of a critical analysis based on literature and secondary data. Findings of the study include thin capitalization, manipulation of transfer prices and royalty payments, Double Irish Arrangement and Dutch Sandwich, tax inversion and cost sharing agreements as some of the tax avoiding strategies used by multinational companies. Recommendations of the study applicable for the Sri Lankan context include addressing the loopholes of the tax system by implementing country-by-country reporting at least for the companies headquartered in Sri Lanka, a common reporting standard for all the companies, formulate and implement Controlled Financial Corporation rules and to limit certain incentives including tightening of foreign dividend income regulations.

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