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CEB to increase electricity tariff by 56% for the 3rd time this year 

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By: Staff Writer

Colombo (LNW): The Public Utilities Commission of Sri Lanka (PUCSL) has decided to seek public opinion regarding the revision of electricity tariffs proposed by the Ceylon Electricity Board for 2023.

A statement, issued by the utility regulator said in accordance with Section 30 of the Electricity Act No. 20 of 2009, the PUCSL has decided to seek public opinion (stakeholder consultation) regarding the revision of electricity tariffs proposed by the distribution licensee (Ceylon Electricity Board) for the year 2023.

Accordingly, written comments and suggestions from the public and other stakeholders regarding the proposed 3rd electricity tariff revision for 2023 will be accepted until October 18, 2023.

The oral stakeholder consultation on the matter will be held on 18th October 2023 at the Bandaranaike Memorial International Conference Hall (BMICH), Colombo.

In the wake of the  the Public Utilities Commission of Sri Lanka (PUCSL) approval to increase electricity tariffs, the Electricity Consumers’ Association (ECA) has claimed that the CEB is preparing to increase electricity tariffs by 56%.

The CEB reported to have been proposed a 3.15% reduction in the electricity tariff for the period from July to December, 2023, but that the PUCSL had reduced the tariff by about 14.2%, curtailing a considerable amount of the allowed expenditure (approximately Rs. 33 billion) for the operations of the CEB for 2023.

“The total projected revenue anticipated from electricity sales from CEB customers amounts to Rs. 600.67 billion (Bn) (with the other incomes of the CEB, it is Rs. 612.74 billion).

Based on the revised generation dispatch, the aggregate expenditure for the year has been adjusted to Rs. 645.25 billion. Consequently, a deficit in revenue of Rs. 32.51 billion is anticipated by the end of the year 2023 (with the other incomes), if the existing tariff rates persist,” the association revealed.

Commenting on the CEB’s preparations to increase electricity tariffs, the ECA Chairman Sanjeewa Dhammika claimed that the CEB was preparing to hike tariffs by 56%. “Three tariff revisions have been made from August 2022, to date. If another revision is made in the coming months, electricity tariffs have been increased by 200% within the course of one year.

 The CEB and the Power and Energy Minister cannot revise electricity tariffs whenever they want. Only two tariff revisions can be made per year with the approval of the Cabinet of Ministers. Therefore, it is wrong for the CEB even to propose a tariff revision in this manner.”

The PUCSL had approved an overall 14.2% electricity tariff reduction with effect from 3 July 2023.

The revision reduced the electricity tariffs of the category that consumes zero-30 units by 65%, 31-60 units by 51.5%, and 61-90 by 24.5%, and tariffs of the hotel sector by 26.3%, the industry category by 9%, commercial buildings by 5%, and religious places by an overall percentage of 16%.

First State Owned Enterprise (SOE) privatisation to take place soon

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By: Staff Writer

Colombo (LNW): The first State Owned Enterprise (SOE) privatization will take place soon while the finalisation of a transaction advisor from the less-than-expected bids received is currently underway, Head of the SOE Restructuring Unit of the Finance Ministry Suresh Shah said.

Almost all proposals received for transaction advisors are a partnership between a local and international investment bank, he said adding less number of proposals for the transactions advisors could be due to the current economic condition, transaction size and the bad record on Sri Lanka for not completing privatisation processes in the past

There are around 130 commercial SOEs, more or less. That is the lot that we are looking at from a number of different perspectives.

One perspective is which of these 130 entities should remain with the government. That is one. 20-25 Soes will have to be manged by the government.

Then, which of these entities should be better served in the private sector? And thirdly, there are also some entities which are doing absolutely nothing, so they will be liquidated, he pointed out.

Power and Energy Minister Kanchana Wijesekara said the Government has prioritised economic sustainability over political gain by committing to restructure State-Owned Enterprises (SOEs).

Addressing various stakeholders including trade union leaders, civil organisation activists and journalists at the Finance Ministry on ‘Restructuring of Government Institutions for a New Development Approach’ he said restructuring SOEs is a critical factor to ensure financial discipline and establishing a stable economy.

“The Minister also said that the Ceylon Electricity Board (CEB) and Ceylon Petroleum Corporation (CPC) must be restructured to overcome the financial burden it has on the overall economy.

“All the SOEs must be restructured. By transferring the powers of decision-making to the Government, the business operations must be allowed via officials to handle. We need to create a proper system to manage those enterprises by restructuring,” he added.

Wijesekera also addressed the staffing situation within the CEB and CPC, revealing that there are over 4,000 vacancies in these institutions, surpassing the approved staff count. However, he emphasised that the existing workforce is sufficient to maintain operations and provide essential services.

As per the Minister, CPC has 3,292 approved staff positions, but currently employs 2,100 individuals, resulting in 1,192 vacancies, whilst CEB with 24,000 approved staff positions, employs 21,000 workers, and has brought in 3,000 external hires for specific tasks. This leaves a gap of 3,000 additional employees needed to meet the approved staff cadre. 

SL youth uprising results in new think tank ‘Institute for Political Economy’

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By: Staff Writer

Colombo (LNW): Sri Lanka‘s Institute for Political Economy’ is set to become a catalyst in navigating a progressive path towards an equitable Sri Lanka in the aftermath of the youth uprising (Aragalaya).

It has paved the way towards ousting former President Gotabaya Rajapaksa ending his economic policy blunders.

Sri Lanka’s economic crisis is widely attributed to local corruption, poor governance and mismanagement of the economy by the previous regime.  However, the country’s crisis is also enabled by flawed global systems, institutions and treaties.

An independent think tank, the Institute for Political Economy (IPE) has been set up to stimulate and inform debates and discussions on public policy implementation in Sri Lanka amidst a turbulent global economy.

Its founders said IPE, inspired by the Aragalaya (අරගලය/அரகலய/struggle), aspires to be a centre for progressive thought and critical analysis dedicated to rewarding work over wealth and calls for systemic change in Sri Lanka›s political economy landscape.

IPE is committed to researching and disseminating transformative economic policies and development strategies.

IPE›s core strength lies in the dedication of its volunteers, who comprise a network of academics, economists and professionals located globally.

IPE aims to promote current global debates calling for a recalibration of the global economy, away from entrenched financialised interests and is committed to seeking viable alternatives. 

There is growing recognition that entrenched vested interests, including in the Global North and in Sri Lanka, are hindering equitable and ecologically sensitive development trajectories.

As a virtual organisation, IPE welcomes all individuals committed to exploring alternatives that shield Sri Lanka from the excesses of the current global economic order and confront contemporary development challenges head-on.

“We believe that it is essential to develop critical analyses of mainstream policies and challenge conventional thinking,” said Charith Gunawardena, who co-founded IPE, along with Kanchana N. Ruwanpura and Kanishka Goonewardena, both professors at their respective institutions.

“Our collective aspiration is to foster an environment that encourages collaboration, draws on expertise from around the world, and advocates for transformative system change.  By acknowledging existing inequities, we can collectively shift economic processes towards a progressive, egalitarian, and democratic direction,” said Gunawardena.  As IPE embarks on its journey towards proposing transformative economic policies, it invites stakeholders from all sectors to join hands in this critical endeavour. By combining diverse expertise and perspectives, IPE aims to create a powerful force for positive change in the country.

Engineers clarion call for immediate repairs on Samanalawewa reservoir leak

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By: Staff Writer

Colombo (LNW): Sri Lanka’s leading engineers have made a clarion call to Ceylon Electricity Board (CEB) to initiate corrective measures to halt leaks in a massive volume of 78 million cubic metres of water in Samanalawewa reservoir annually, a major hydro power source of the country.   

In a startling revelation they claimed that the leak is causing a loss of Rs.2. 7 billion to the Ceylon Electricity Board (CEB).

The Institution of Engineers Sri Lanka (IESL) in a statement recently urged the Government to take prompt action and instruct the Ceylon Electricity Board (CEB) to initiate corrective measures to halt the leaks in the Samanalawewa reservoir.

IESL emphasised the imperative need to guarantee the reservoir’s safety, as communities residing downstream in the Walawe River basin are now under persistent threats.

The IESL observed that the reservoir is situated in an area characterised by fragile rock formations, and despite the implementation of specialised engineering solutions both before and after 1992, water has continued to seep from the reservoir for the past three decades.

“Two thousand litres of water per second leaks from the reservoir’s right bank. There are no leaks from the dam itself,” it explained.

The IESL pointed out that although the CEB had sought and obtained Cabinet approval in 2021 to reduce the reservoir’s water level, conduct investigations, and undertake remedial actions during the 2022 dry season, these measures were not executed by the CEB.

However, the IESL also noted the CEB has already mapped the possible pathways of the leaks.

“Further lowering of the water level in the reservoir now, would enable physical examination, to support scientific investigations done over the years, and then to immediately attend to remedy the leaks,” the organisation said.

“Urgent action is now required to close all the known and visible leakage paths. The reservoir water levels are still very low and offer the best opportunity for the first time in 30 years, to close the scientifically proven and some now visible leakage paths.

Experts in engineering, geology, irrigation, and electrical power have concluded that the primary objective would be to make the reservoir safe in the longer term.

Any breach of the reservoir’s right bank owing to years of leakage would amount to a disaster, unprecedented in the history of Sri Lanka. Large communities living downstream of the reservoir, in the Walawe River basin are under constant threat,” it added.

The IESL said the CEB must be authorised to act now, before allowing the reservoir levels to rise in the upcoming rainy season.

 “The paramount responsibility of the Government and CEB is to ensure the safety of the reservoir and the people living in the vast downstream expanse of the dam, who live under constant threat,” it noted. 

SRI LANKA: Imprisonment of 5 Years for Non-Arrest of A Suspect – A Good Example to Emulate

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By Basil Fernando

The sentencing of a former Senior Deputy Inspector General of Police for giving illegal orders not to arrest a suspect.

The reported sentencing of former Senior Deputy Inspector General of Police, Lalith Jayasinghe, for giving illegal orders to prevent the arrest of a person allegedly involved in the shooting which resulted in the death of some persons, was a sentence of five years in prison, by the High Court Judge of Ratnapura. While the particular case may be of interest from a political point of view due to the Member of the Parliament who was later arrested and convicted and later acquitted by the Court of Appeal, this case is of enormous importance from another point of view. This is one of the unique cases in which a very senior Police officer who has held the rank of a Senior Deputy Inspector General of Police has been held guilty of giving illegal orders to an Officer-In-Charge of a Police station who was carrying out an inquiry into the relevant shootings and murders. 

The importance lies in the fact that the complaints about the interferences of higher Police officers into the workings of the Police investigators who are investigating into crimes, is a complaint that is being heard so very frequently. In fact, it is no exaggeration to say that such interferences have reached epidemic levels. This instance where the investigating Officer-In-Charge of the Police had the courage to complain about this incident and pursue the complaint over a period of almost eight years till a conviction has been reached should set an example for others who are facing similar situations throughout the country.

The importance of this case lies in the fact of the key role played by the Officers-In-Charge of the Police who according to the Criminal Procedure Code of Sri Lanka have the duty to conduct inquiries into all crimes which are being reported in their respective jurisdictions. It is the function of the Officers-in-Charge of the Police to ensure investigations into all crimes that keep the security of the society and also to provide security to the people. People can walk on the roads peacefully and conduct their daily affairs such as small businesses and many other transactions and also conduct their neighbourhood relationships peacefully, only due to the fact that the legal system of Sri Lanka has provided like it has also provided in almost all countries for the function of the Police to intervene into any kind of criminal interference into the freedoms of the people by exercising the powers given to them as investigators into crimes. 

Perhaps, the one issue that may be of general interest to all families throughout Sri Lanka today is the duty of the Police to investigate into various crimes relating to the drug trade as this overwhelming problem has emerged in this society affecting families, schools, neighbourhood relationships and also many other factors which cause social unrest and its instability due to the failures of those criminal investigators who have failed to bring this widespread crime under control.

When inquiries are being made into by some of the Police officers, many of them frankly tell that they have tried their best and are in fact trying their best to get this situation under control but that they are prevented from acting because of the orders that are coming down to them from their higher authorities. When a higher ranking Police officer interfere with the investigations into crimes, they are in fact acting criminally as the instructions they give to the local Police stations to prevent them from doing investigations itself becomes a source of the increase of crimes.

Thus, Sri Lanka must today deal with the issue of higher ranking Police officers themselves being part of a criminal enterprise directly or indirectly by the manner in which they obstruct the investigations of crimes by the Officers-In-Charge of the Police who exercise their powers under the Criminal Procedure Code of Sri Lanka. In fact, the kingpin of crime control is the Officers-In-Charge of the Police. If their work is interfered with by a higher officer, this is a very serious crime and also an action against social stability.

The sabotage of criminal investigations 

There is a need for a strategy to stop the sabotage of investigation of crimes by higher ranking Police officers.

A section of higher ranking officers has become a formidable obstacle for crime investigation in Sri Lanka. Had it not been for this, much of the very serious crimes including those relating to the drug trade can be stopped overnight.

These officers in fact offer a greater threat to social stability, peace and the psychological well-being of people including family stability than any other section of society. Thus, they are by now a national security threat, because a crime ridden society threatens every aspect of society.

These officers may argue that they are a creation of bad politicians. However, this is no excuse and not a defence. Besides, as it had happened in this case, politicians will not come to rescue these officers when they face criminal charges in courts.

Charter on AI in the media: RSF is consulting media and civil society

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As part of its work on a charter regulating the use of artificial intelligence (AI) in the media, Reporters Without Borders (RSF) is inviting contributions from the media and civil society organisations, above all those specialising in the media. These contributions will help the committee created at RSF’s initiative to identify appropriate responses for media professionals to the rapid deployment of AI technology.

After the creation of an international committee to work on this issue it now falls to media professionals and civil society organisations throughout the world to express their views. So that their thoughts on the application of media ethics to AI can be incorporated into the committee’s work, RSF is providing them with this link to a form in which they can share their views. The deadline for submitting contributions is 11 October 2023.

“RSF would like to include media and organisations around the world as broadly as possible in a collective discussion on this subject of vital importance for the integrity of news and information. We urge civil society to take up this call to share their vision of journalistic ethics applied to artificial intelligence.”

 Christophe Deloire
RSF secretary-general

The four main themes on which the AI Charter committee is working are reflected in the form, which is designed so that the media can express themselves on the same issues as the members of the committee chaired by journalist and Nobel peace laureate Maria Ressa. Each of these themes corresponds to specific challenges that the media must address. RSF asks media professionals to say what they think should be done to respond effectively:

  • Information gathering: The advent of generative artificial intelligence (GAI) – the set of AI tools that can generate text, images, audio and other media content on demand – facilitates the production of synthetic content enormously. But journalists must be able to continue to identify authentic content quickly and with certainty. What tools and working methods should the media and journalists adopt to address these new challenges?
     
  • Information processing: The growing use of AI tools in the media raises concerns about reliability, bias and data leakage. Algorithms that analyse data and generate content are liable to alter the bases of journalistic ethics. Furthermore, biases inherent in the training datasets of AI systems are amplified in the content they produce. Also, the use of AI to optimise audience reach can encourage the dissemination of narratives that favour sensationalism at the expense of balanced, nuanced reporting. Finally, the lack of transparency of AI systems also poses a problem. What characteristics should the AI systems used by journalists have, and what work procedures should be put in place to ensure that the news content produced meets the standards of quality journalism?
     
  • Information dissemination: The ubiquitous recommendation algorithms in social media steer users in specific directions and strongly influence the visibility and dissemination of online content, while search engines direct traffic massively towards certain content at the expense of alternatives. In addition to the dangers posed by large platforms, the media themselves increasingly use sophisticated technology to disseminate content in accordance with their own interests. Search engines integrated into media websites and push mechanisms in media mobile apps could soon be reinforced by AI’s power. What would be the best ways to serve the right to reliable news and information?
     
  • Strategic positioning of media vis-à-vis AI sector companies: The news industry continues to be disrupted by platform intermediation in the dissemination of news, but now it must also grapple with the emergence of new players, the AI producers, who can both compete with them and provide them with the tools required for the production of quality news and information. How should media companies behave towards AI providers and Big Tech companies in general?

To explore these questions further, RSF is making two of the committee’s working documents available to the public. The first, entitled Challenges raised by AI regarding the right to information, provides a full and detailed list of the challenges. The second, entitled AI and Media Ethics : Existing References and overview, provides an overview of the various existing ethical initiatives in AI and journalism, in order to underscore the innovative and pioneering aspects that the AI in the Media Charter project initiated by RSF intends to provide.

Reporters Without Borders (RSF)

President Engages in Bilateral Talks with German Chancellor

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Sri Lankan President Ranil Wickremesinghe held bilateral discussions with German Chancellor Olaf Scholz during his official visit to Berlin for the ‘Berlin Global Dialogue’ forum.

Accompanied by a high-level delegation, including Senior Advisor to the President on National Security & Chief of Staff Mr. Sagala Ratnayaka, President’s Senior Advisor on Economic Affairs Dr. R.H.S Samarathunga, Secretary to the Ministry of Foreign Affairs Ms. Aruni Wijewardhena, and Private Secretary to the President Ms. Sandra Perera, the talks aimed to address bilateral concerns and bolster relations between the two countries.

Sri Lanka Original Narrative Summary: 30/09

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1. Sectoral Oversight Committee on National Economic and Physical Plans Mahindananda Aluthgamage says his Committee has identified the reasons for the shortfall of 15% of Govt Revenue this year amounting to Rs.500 bn: asserts a Committee of officials will be established to monitor the Inland Revenue Dept, SL Customs and Excise Dept, since the reduction in tax is due to the inefficiency & corruption of bureaucrats, and the absence of properly developed systems at the 3 institutions.

2. Bloomberg reports that some Committee members on the Committee of SL’s Official Creditors push for a deal to restructure SL’s debt without China: want the group of major creditors, including US, Japan & India, to sign a MOU with Sri Lanka.

3. Public Utilities Commission decides to call for public views and proposals on the proposed Electricity Tariff Hike, which is to be effective from October’23.

4. Agriculture Minister Mahinda Amaraweera advises the Animal Production and Health Department to start research to introduce 2 species of cattle & goats suitable for SL in order to increase the production of milk & meat: says one of the main reasons affecting the increase in livestock production in SL is the lack of suitable animals for the respective products.

5. General Manager, Railways says there are “productive solutions” to prevent elephants being run over by trains: laments that the lack of funds has caused the delay of implementing these measures: meanwhile, 4 elephants killed on Wednesday (27) after being knocked down by the night mail train from Colombo to Kankesanthurai.

6. Govt expenditure for the year 2024 estimated at Rs.3,860 bn, as per the Appropriation Bill.

7. Govt Ayurvedic Medical Officers’ Assn Media Secretary Dr Indunil Jayasinghe says about 100 Ayurvedic doctors have already left the country with a significant fraction anticipating to migrate: the GAMOA also says the Govt has no sustainable solution at present, and that there is a demand for Ayurvedic doctors in New Zealand, Canada, Germany, UK and Australia.

8. SriLankan Airlines says several flights were cancelled due to “technical issues” over the last few days & every effort is being made to accommodate passengers on alternative flights: also says these are “routine issues”, and aircraft maintenance follows very strict procedures which necessitate repairs or replacement of parts before an aircraft is cleared for flying.

9. Prosecutors in Nagoya, Japan say they have decided not to charge officials at an Immigration Center in the city over the 2021 death of a Sri Lankan detainee, Wishma despite her family’s repeated calls for them to be indicted: the lawyer representing the family says the prosecutors “covered up & disregarded a crime committed by those in power”: vows to continue to fight.

10. Jaswar Umar elected President of the Sri Lanka Football Federation at the election for office bearers: polls 45 votes while his rival Thilanga Dakshitha polled 20.

Chinese Ambassador Affirms Support for SL’s Development and Progress

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Chinese Ambassador to Colombo, Qi Zhenhong, reiterated China’s steadfast commitment to supporting Sri Lanka in pursuing a development path that aligns with its national conditions, enabling the country to overcome poverty and foster non-development obstacles.

Ambassador Qi emphasized that China warmly welcomes all nations, including Sri Lanka, to participate in China’s developmental endeavors. Despite China’s significant contribution to global growth, with a share exceeding 30 percent in the past decade, the country remains the world’s most extensive developing nation with a population exceeding 1.4 billion.

Furthermore, Ambassador Qi urged all countries to uphold mutual respect, seek common ground while preserving differences, and collaborate to address contemporary challenges. He emphasized the importance of creating a shared future for humanity and working collectively to overcome global challenges.

SL tourist arrivals expected to top 1.5 million in 2023

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By Nethmi Rajawasam (Economy Next)

Sri Lanka’s tourist arrivals are expected to top 1.5 million in 2023, Chairman of Sri Lanka’s Tourism Development Authority Priyantha Fernando said.

Sri Lanka welcomed its millionth tourist for the year on September 26.

“Looking at the targets we had set for 2023, we are ahead of targets,” Fernando said at an event marking World Tourism Day.

“We have achieved one million tourists up to now.”

An initial target for 1,550,000 tourists set for 2023 will be exceeded, he said.

In April 2023, officials said they were planning to revise the arrival target to 2.0 million for 2023, based on strong first quarter arrivals.

The United Nations World Tourism Organization cited its own tourism barometer on the global tourism sector in May and said that international arrivals reached 80 percent of pre-pandemic levels in the first quarter of 2023.

In 2023, an estimated 235 million tourists across the world travelled internationally for the first three months.  

“International tourism is well on its way to returning to pre-pandemic levels, with twice as many people travelling during the first quarter of 2023 than in the same period of 2022,” the body said in a statement.

In the first 20 days of September Sri Lanka welcomed 75,222 tourists, according to official data.

Up to August 2023 Sri Lanka was estimated to have earned 1,304 million US dollars from tourism, up 56 percent from a year earlier according to tourism survey data.

Fernando said the sector hoped to the largest foreign exchange earner for the economy by 2027.

UNWTO Secretary-General Zurab Pololikashvili in a statement released in May said, “International tourism receipts grew back to hit the USD1 trillion mark in 2022, growing 50 percent in real terms compared to 2021, driven by the important rebound in international travel. International visitor spending reached 64 percent of pre-pandemic levels (-36 percent compared to 2019, measured in real terms).”

The UNWTO Panel of Experts claimed the economic situation to be the main wavering factor affecting international tourism in 2023, with high inflation and rising oil prices translating into higher transport and accommodation costs.

Economy Next