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Adani’s 500 MW wind power deal in the North should go ahead: Indian HC  

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By: Staff Writer

February 02, Colombo (LNW): India’s billionaire business tycoon Gutam Adani’s 500 MW wind power deal in the island nation’s Northern Province should progress after a better negotiation process, Indian High Commissioner for Sri Lanka Santosh Jha said

It is a commercial venture by Adani. They would be the right people to answer the question,” Santosh Jha told reporters in Colombo at a meeting with senior journalists on Thursday (01).“It should progress,” he said when asked about the delays in the project.

Sri Lankan officials have said the Adani wind power project has been facing some delays as a Cabinet Appointed Negotiation Committee (CANC) has been raising concerns over the project components.

The US $442 million project was given to the Indian firm as an unsolicited deal after it was changed to a government-to-government deal with Adani Green Energy was issued provisional approval for two wind projects of 286 MW in Sri Lanka’s northwestern Mannar and 234 MW in the Northern Pooneryn.

The government has already explored the offshore wind power potential in the country especially in the North and East expediting two mega wind power projects of 286 MW in Mannar and 234 MW in Pooneryn under taken by Adani Green Energy Ltd for an investment of over US$ 500 million.

Adani Company has requested the government to include their claim for carbon credit in their project contract under Sri Lanka Carbon Crediting Scheme (SLCCS) established for supporting local clean projects to benefit from climate finance for the Greenhouse Gas emission (GHG) reduction, official sources said.

It has also demanded a government guarantee for their investment in the two projects or to keep shares of another state owned business enterprise as a surety for their money dumped in those projects.

Power and Energy Minister Kanchana Wijesekera disclosed that Adani Green Energy has been given approval to implement the projects in August last year and it has expressed commitment to complete the projects by December 2024.

A cabinet paper on the same projects, dated the 14th of August 2023 noted that it should be considered as a government-to-government arrangement.

This was the strategy adopted by the government to award the wind power projects in Mannar and Poonaryn, to Adani Green without calling for competitive bids and selecting the most beneficial deal, considering it as a government-to-government proposal.

As the cabinet had already considered all aspects of the agreement between the SL government and Adani Green Energy Ltd and “authorised all the parties to enter into the MoU and to proceed with the required future action,

 Sri Lanka’s cabinet has given greenlight to recruit a raft of technocrats to a committee that will assess the project.

However, sources who are privy of the ongoing negotiation have said the project approval is facing some delay in the negotiation process of the CANC.

The CANC has first raised concerns over pricing with the state-owned Ceylon Electricity Board (CEB) had said the unit cost for wind power under the project was expensive under the project.

Later, CANC had raised concerns over a 15% risk assessment on the project, sources have said.

PUCSL and CEB in loggerheads again over electricity production cost data

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By: Staff Writer

February 02, Colombo (LNW): In the wake of the power and and energy ministry’ eleticty tariff revision this month, the country’s electricity regulator Public Utilty Commission and Ceylon Electricity Board at loggerheads over  the necessary data supporting the new tariff proposal.

In the proposal handed over to the PUCSL, the state-owned electricity supplier CEB stated it has analyzed all possible scenarios to approach the best estimate of expenditure and revenue based on a number of factors.

Those are  existing tariffs, availability of coal/oil fuel stocks, future fuel prices, hydro inflow variations, scheduled plant outages, envisioned economic crisis resulting in the reduction of energy demand and sales, adjusted expenses of transmission and distribution, various policy instructions of government to derive the Bulk Supply Tariff (BST) and end-user tariff proposal.

Based on CEB’s analysis, a surplus of Rs. 23,730.9 million is estimated. The CEB says the surplus can be used for the reduction of average tariff by 3.34%.

But the PUSCL contradicts CEB claims pointing out that the state-owned electricity supplier has presented their energy cost details with excess expenditure of Rs 200 billion not the above Rs 23.7bilion. Therefore the electricity tariff could be reduced by 25-30 percent by removing the bogus expenditure figure.   

CEB has completely dropped the profit of Rs 48 billion gained last year ints current tariff revision proposal data submission but it has inficated transmission cost as Rs 95 billion and it has added additional expenditure of Rs.200 billion to cover up the total net profit, PUCSL revealed.

However the CEB says the new tariff proposal has been prepared considering a relief to low-income vulnerable groups and the entities of economically important businesses based on policy instructions of MOPE (Ministry of Power & Energy).

Meanwhile the Sectoral Oversight Committee on National Economic and Physical Plans raised concerns regarding the indifferent approach of officials of the PUCSL to digitalize the system.

The Committee questioned why the PUCSL and the Ceylon Electricity Board (CEB) is falling behind in working towards digitalizing the system when the Parliament has requested for a dispatch audit and accurate data.

The Committee was of the view that human intervention should be minimized when and the inaction to carry out directives given by Parliament is a disrespect to the Parliament.

The Committee also expressed displeasure in the lack of action in digitalizing emphasizing that such inaction exists as it challenges the existing mafia within the system.

The Committee further stated that allowing such mafia only burdens the consumer and that the PUCSL officials should stand more firmly to rectify this situation.

CAA mandates proper display of weight and price for bread in extraordinary gazette notification

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February 02, Colombo (LNW): The Consumer Affairs Authority (CAA) has taken decisive action by issuing an extraordinary gazette declaration that mandates sellers to prominently display accurate weight and price information for bread.

The issuance of the gazette is a crucial measure undertaken in the interest of consumer safety, CAA Chairman Shantha Niriella said.

The directive outlines mandatory requirements for those involved in the various stages of the bread supply chain, including preparation, packaging, storage, wholesale, and retail.

According to the gazette, it is imperative for all entities engaged in the sale of bread to ensure that the weight of the bread displayed for purchase adheres to the specified standard weight.

Additionally, sellers are obligated to conspicuously present the weight of the bread being offered for sale.

The stipulated standard weights outlined in the gazette are 450 grams for a full loaf of bread and 225 grams for a half loaf.

Litro Gas maintains current domestic LP gas prices amidst international market surge

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February 02, Colombo (LNW): Litro Gas announced today (02) its decision to keep the prevailing domestic liquefied petroleum (LP) gas prices unchanged, despite a rise in international market prices.

During a media address, Litro Chairman and CEO Muditha Peiris explained that the decision was grounded in a consideration of the financial challenges currently faced by the public.

In response to these challenges, Litro Gas has opted not to revise the LP gas prices for the current month, demonstrating a commitment to supporting consumers during a period of economic strain.

Peiris emphasised that the company has willingly absorbed a substantial portion of the associated financial loss by refraining from implementing any rate adjustments.

As a result of this decision, the existing rates for Litro LP gas stand as follows: the retail price for the 12.5kg gas cylinder remains at Rs. 4,250, the 5kg cylinder remains at Rs. 1,707, and the 2.3kg cylinder is maintained at Rs. 795.

SriLankan Airlines CEO addresses flight delay concerns, highlights industry challenges

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February 02, Colombo (LNW): Richard Nuttall, Chief Executive Officer (CEO) of SriLankan Airlines, responded to concerns regarding flight delays, acknowledging that while delays are within global averages, an increase has been noted due to technical issues, according to a report by Daily Mirror.

Nuttall emphasised that flight delays are a common occurrence for every airline, and the reported delays, while in line with industry standards, are sometimes perceived as more significant than they are.

Drawing a comparison, he noted that delays experienced by other international carriers, such as Qatar Airways, might not receive the same level of media attention.

Highlighting SriLankan Airlines’ on-time performance, Nuttall stated that it surpasses the average performance of Oneworld carriers.

He explained that aircraft maintenance, particularly when dealing with Aircraft on Ground (AOG) situations, is regulated by strict manuals and checks and balances.

Nuttall pointed out a current challenge faced by the aviation industry, where delays are exacerbated by difficulties in obtaining spare parts promptly. He cited an example of a routine check in December where corrosion was detected, requiring the replacement of a part.

Traditionally, neighboring airlines could provide the spare part within 24 hours, but due to recent challenges, the required part had to be manufactured by an alternative organisation, extending the repair time from a standard 24 or 48 hours to two weeks.

The CEO clarified that such extended repair times are not unique to SriLankan Airlines and have been experienced by airlines globally. Nuttall referred to a challenging period in December, describing it as a “perfect storm” where multiple factors contributed to prolonged maintenance delays.

Gov to introduce afternoon meals for Primary School children: Education Minister

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February 02, Colombo (LNW): Education Minister Susil Premajayantha has officially declared the government’s decision to institute a daily afternoon meal programme for children in primary grades attending government schools, Lankadeepa reported.

Commencing from March of this year, all children in primary grades will receive lunch as part of this initiative.

The government has allocated approximately Rs. 16 billion for the implementation of this project, with an estimated daily cost of Rs. 110 per child.

Minister Premajayantha underscored the significance of this programme in addressing nutritional needs and ensuring the well-being of primary school children.

The introduction of afternoon meals aims to enhance the overall educational experience and contribute to the health and development of young learners.

Ex Health Minister appears at CID to provide statement on substandard immunoglobulin probe

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February 02, Colombo (LNW): Minister Keheliya Rambukwella presented himself at the Criminal Investigation Department (CID) to provide a statement in connection with the ongoing investigations related to the importation of substandard immunoglobulin.

The directive for Minister Keheliya Rambukwella to appear before the CID at 9:00 am today (02) was issued by the Maligakanda Magistrate.

The summons is part of the investigative process concerning the importation of substandard immunoglobulin.

Additionally, the magistrate imposed an overseas travel ban on Minister Keheliya Rambukwella, who currently serves as the Minister of Environment, formerly holding the position of Minister of Health.

Dollar rate at commercial banks today (Feb 02)

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February 02, Colombo (LNW): The Sri Lankan Rupee (LKR) has further appreciated against the US Dollar today (02) in comparison to yesterday, as per the exchange rates of leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 307.69 from Rs. 309.16, and the selling price to Rs. 318.41 from Rs. 319.94.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 304.02 from Rs. 308.60, and the selling price to Rs. 315.00 from Rs. 319.50.

At Sampath Bank, the buying price of the US Dollar has dropped to Rs. 308 from Rs. 309.5, and the selling price to Rs. 317 from Rs. 318.50.

Health Sector TUs extend strike action into second day amidst ongoing talks

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February 02, Colombo (LNW): The island-wide strike initiated by a coalition of health sector trade unions entered its second consecutive day today (02), with discussions planned to address the ongoing situation later today.

Upul Rohana, President of the Paramedical Services Front (PMSF), stated that a final decision on the continuation of the strike would be determined during the scheduled discussion with trade union representatives.

The health workers collectively resorted to this trade union action due to what they perceive as an inadequate response from the government concerning their demands.

The strike involves a coalition of 72 trade unions from the health sector, who launched a one-day strike on February 01, urging the government to promptly address issues related to allowances.

However, doctors’ unions and the All Ceylon Nurses’ Union opted not to participate in the strike, asserting that the planned action was a government conspiracy.

Tri-force personnel were deployed to state hospitals nationwide in response to the strike, ensuring the continuous provision of essential medical services.

On January 8th, the Cabinet of Ministers approved the doubling of the Disturbance, Availability, and Transport (DAT) allowance for government doctors, increasing it from Rs. 35,000 to Rs. 70,000.

Subsequently, health sector trade unions representing various professionals, including radiology and laboratory technicians, pharmacists, midwives, dental surgeons, public health inspectors, and entomology officers, engaged in multiple strikes, opposing the decision and demanding an allowance increase for all health sector employees.

On January 23rd, the government temporarily reduced the payment of the DAT allowance for doctors, citing insufficient funds. Dr. Asela Gunawardena, the Director General of Health Services, explained that while arrangements were made for the payment, the Treasury had not provided funds within the approved allocation limit.

This prompted the Government Medical Officers’ Association (GMOA) to announce an indefinite strike starting January 24th, which was later called off after the decision to suspend DAT allowance payments was reversed.

Cabinet decision to split SLIC challenged in Appeal Court

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February 02, Colombo (LNW): Udayanga Rathna Diwakara, the General Secretary of Sri Lanka Insurance Corporation (SLIC), has initiated legal proceedings by filing a petition before the Court of Appeals on February 01, seeking a writ order to annul the Cabinet’s decision to bifurcate SLIC into two separate institutions.

A total of 56 individuals, including Prime Minister Dinesh Gunawardena, members of the Cabinet of Ministers, SLIC, and its Board of Directors, have been cited as respondents in the petition.

Such a decision, impacting the structure of SLIC, requires parliamentary approval and cannot be solely determined by the Cabinet, Diwakara argued.

He emphasised in the petition that SLIC, beyond being a profit-making institution, significantly contributes to public welfare.

He contended that the Cabinet’s decision lacks a legal foundation and raises concerns about the potential negative consequences on the public.

In addition to seeking an interim order against the Cabinet decision, Diwakara’s petition also requests the Court of Appeals to restrain SLIC’s Board of Directors from executing any actions leading to the division of the company’s assets and properties into two separate institutions.

The Cabinet of Ministers had approved the decision to operate the life and general insurance businesses of SLIC as distinct legal entities during its meeting on March 13, 2023.

This approval was granted in adherence to the provisions of the Regulation of Insurance Industry (Amendment) Act No. 3 of 2011 under the state-owned enterprises (SEOs) restructuring.

Subsequently, on December 18, the Cabinet endorsed a proposal by the President to segregate the life and general insurance businesses of SLIC into fully owned subsidiaries – Sri Lanka Insurance Corporation Life Limited and Sri Lanka Insurance Corporation General Limited.