By: Staff Writer

April 04, Colombo (LNW):The Committee on Public Enterprises (COPE) has uncovered significant irregularities in the development of the new passenger terminal at Katunayake’s Bandaranaike International Airport, citing frequent alterations to the roof design driven by successive governments’ political agendas.

During a recent COPE session with Airport and Aviation Services (Sri Lanka) Limited, it was revealed that the terminal’s roof design has been revised multiple times to reflect different political symbols. One administration proposed a lotus flower-inspired design, while another introduced a version shaped like an araliya leaf, showcasing the extent of political interference in infrastructure development.

Dr. Nishantha Samarawickrama, Chairman of the COPE Committee, explained that the airport expansion aimed to increase passenger handling capacity—from 6 million to 12 million passengers—following Cabinet approval in 2007. By 2013, there were discussions to push this number to 15 million. However, the project has suffered due to inconsistent planning and questionable decisions.

Over the first four years, 344.5 million rupees were paid to a consulting firm responsible for planning and design. Hasitha Karunaratne, Head of Projects at Airport and Aviation Services, noted that the project required prior planning to secure funding from the Japan International Cooperation Agency (JICA). Although Cabinet initially approved the design and the loan was acquired, the project stalled midway.

Despite the aim to increase capacity, the same consulting firm was retained for further services, raising concerns about transparency and procurement. Auditor General W.P.C. Wickramaratne disclosed that the former Minister of Ports and Aviation endorsed the firm without a proper bidding process. COPE members expressed that if competitive bidding had been conducted in 2009, Japanese funding through JBIC could have been utilized more effectively.

In 2014, a new contract was signed with the same firm, extending consultancy services for another 47 months at a cost of 1.36 billion Japanese yen—approximately 519 million Sri Lankan rupees. COPE questioned this decision, highlighting that the earlier payment of 344.5 million rupees appears to have been squandered due to halted progress and poor initial planning.

MP Asitha Niroshan Egodawithana criticized the repeated selection of the same consulting firm and emphasized that roof design changes were dictated by political motives. The back-and-forth between symbolic elements like the lotus and the araliya leaf underscores how public funds and international loans have been misused to serve partisan interests rather than public needs.

As of 2025, the terminal expansion remains incomplete, plagued by years of delays, political interference, and ineffective project management.

By: Staff Writer

April 04, Colombo (LNW):Sri Lanka’s renewable energy sector stands at a critical juncture, as industry experts voice serious concerns over ongoing policy inconsistencies, bureaucratic inefficiencies, and deliberate roadblocks that continue to hamper the country’s clean energy transition.

At a recent press briefing, key industry figures—including Dr. Lakmal Fernando of the National Chamber of Commerce, renewable energy expert Dr. Vidura Ralapanawa, and engineers Prabhath Wickramasinghe and Parakrama Jayasinghe—called for urgent reforms to revive investor confidence and ensure long-term energy sustainability.

The experts highlighted a string of pressing issues. Chief among them was the government’s withdrawal of the ‘Net++’ scheme, which previously allowed commercial producers to export excess solar power to the national grid.

This move has significantly impacted the return on investment for solar projects and discouraged future expansion. According to Dr. Fernando, over Rs. 100 billion in bank loans are now at risk due to policy reversals, while more than 60,000 jobs in the solar industry face uncertainty.

Tariff-related instability also remains a major concern. The abrupt cut in solar feed-in-tariffs—from Rs. 42 to Rs. 27 per kWh—was cited as a critical blow to project viability. Investors were further shaken when the government retroactively adjusted 2023 tariffs, demanding refunds for so-called “overpayments.”

Dr. Ralapanawa also criticized the decision to eliminate the variable tariff mechanism by 2025, exposing investors to greater currency and interest rate risks. He warned that continued policy backtracking could cost Sri Lanka $1.2 billion in potential climate financing, as highlighted in a recent World Bank report.

The experts alleged that vested interests within the Ceylon Electricity Board (CEB)—referred to as the “CEB Mafia”—have systematically obstructed renewable integration to protect fossil fuel-based power generation. Ad-hoc power curtailments, informal notices, and grid inefficiencies were all pointed to as examples of sabotage.

The national grid’s inability to integrate renewables was dramatically exposed during the February 2025 blackout, initially blamed on solar energy. Investigations later revealed that the real cause was technical failures at the Victoria power plant. Dr. Ralapanawa argued that the absence of Battery Energy Storage Systems (BESS)—despite being part of Sri Lanka’s Long-Term Generation Plan—has worsened the grid’s instability.

The CEB’s refusal to settle dues with renewable energy suppliers, despite enjoying higher revenues than the country’s top exporters, was also condemned. Engineers Jayasinghe and Wickramasinghe warned that the lack of investor safeguards, combined with constant policy shifts, is making renewable energy projects unbankable.

Despite these setbacks, solar energy now contributes 12% to the national energy mix and continues to be the cheapest option after major hydropower. Yet Sri Lanka still depends on fossil fuels for over half its electricity needs, spending more than $5 billion annually on fuel imports—an unsustainable trend, experts say.

By: Staff Writer

April 04, Colombo (LNW):The National Chamber of Exporters of Sri Lanka (NCE) has urged the Indian government to provide duty-free access to Sri Lankan goods for a five-year period, a move it believes would significantly support the island nation’s struggling export sector and broader economic recovery.

This appeal comes ahead of Indian Prime Minister Narendra Modi’s official visit to Sri Lanka. In a statement released yesterday, the NCE emphasized that such a concession would have minimal impact on India’s vast economy, given Sri Lanka’s relatively small $16.5 billion export basket compared to India’s $3.8 trillion GDP. The Chamber argued that India’s granting of duty-free access and reduction of non-tariff barriers would demonstrate meaningful support without imposing a major economic burden.

The NCE stressed that this request aligns with India’s broader trade strategy, as the country is actively seeking duty-free access for its own exports in numerous international markets. Given the longstanding, multifaceted relationship between the two nations, the Chamber expressed confidence that India would consider the request in a positive light—especially during this critical phase of Sri Lanka’s recovery.

Historically, Sri Lanka and India have shared deep cultural and economic ties rooted in common heritage, trade, religion, and mutual cooperation. India has consistently supported Sri Lanka in times of need, providing vital assistance in areas such as healthcare, financial aid, strategic investments, and tourism. India is also Sri Lanka’s largest source of inbound tourists, further underlining the importance of bilateral relations.

Despite South Asia’s overall economic progress, Sri Lanka has faced significant challenges, including political instability, the 2019 Easter attacks, the COVID-19 pandemic, and an ongoing financial crisis. These setbacks have severely hampered the country’s development and strained its foreign exchange reserves.

The Sri Lankan export community, a key driver of foreign income, has shown resilience in these turbulent times. However, export earnings have remained stagnant for over a decade. Inspired by the export growth seen in regional peers like Bangladesh and Vietnam, local exporters are increasingly advocating for policy reforms, digitization, and strategic actions aimed at achieving exponential—not just incremental—growth.

According to the NCE, discussions among exporters and interactions with policymakers have highlighted the urgent need for a bold export strategy. They see India’s support as essential to this effort, positioning India not just as a neighbor, but as a potential catalyst for transformation. By offering duty-free access, India can empower Sri Lankan small and medium enterprises (SMEs) to scale up, attract investment, and strengthen the country’s foreign exchange inflows.

Looking forward, the NCE suggests that Sri Lanka must strategically distinguish between temporary financial aid and long-term, sustainable support. Achieving self-reliance and economic resilience, they argue, will depend on partnerships like the one with India—particularly if such collaboration paves the way for increased trade and mutual prosperity.