By: Staff Writer

November 05, Colombo (LNW): In line with the new government’s anti-privatization policy, the Ceylon Electricity Board (CEB) has set aside plans for privatization, opting instead to focus on an extensive internal restructuring strategy.

This approach aims to improve the utility’s operational efficiency, service standards, and financial sustainability.

The restructuring initiative was discussed and formalized during a Board of Directors meeting on October 23, where it was decided to reorganize the CEB into independent entities handling distinct aspects of electricity production and distribution.

The legislative foundation for these reforms lies in the new Electricity Act, passed by the Sri Lankan Parliament on June 6, 2024. Originally introduced on April 25, 2024, the bill was debated and later approved with a 44-vote majority. The Act supersedes previous CEB legislation, namely the Ceylon Electricity Board Act No. 17 of 1969 and the Sri Lanka Electricity Act No. 20 of 2009.

 It advocates a structural overhaul that divides the state-owned utility into separate corporate units responsible for electricity generation, transmission, distribution, and trade. This unbundling is intended to enable each sector to operate more independently and efficiently.

A critical feature of the new Act is the establishment of the National Electricity Advisory Council, with the Public Utilities Commission of Sri Lanka (PUCSL) acting as the primary regulatory authority.

This change aligns with the government’s broader policy goals, aiming to make the CEB more transparent, accountable, and cost-effective.

Additionally, the new legislation envisions a single-buyer model for managing the utility’s finances, supported by stakeholder consultations to ensure open governance.

Despite these forward-looking plans, the legislative process faced a significant hurdle when the proposed bill was challenged in the Supreme Court.

The court ruled that several clauses were inconsistent with the Sri Lankan Constitution, necessitating amendments to bring the bill into compliance before its final approval in Parliament. The previous government addressed these concerns by amending the bill, allowing it to move forward in Parliament.

Under the newly endorsed restructuring framework, the government is set to retain ownership of all power plants and the nation’s transmission and distribution networks, thereby reinforcing its commitment to public ownership of essential utilities.

This move assuages privatization concerns while still allowing for private-sector involvement in certain areas of power generation, transmission, and distribution.

The restructuring also targets substantial improvements in service quality and customer satisfaction, along with efforts to lower Sri Lanka’s electricity costs, setting an ambitious goal to achieve the lowest rates in the region within five years.

The CEB’s leadership views these objectives as critical to meeting the country’s socio-economic needs while also supporting the wellbeing of its employees.

However, trade union representatives, particularly from the opposition Samagi Jana Balawegaya (SJB), have expressed concerns over this restructuring plan. SJB union leader Ananda Palitha argued that the division of CEB employees into newly created entities could lead to fragmentation within the organization.

 At a recent press conference, Palitha criticized the government’s restructuring efforts as a continuation of previous policies under a different guise, citing concerns over job security and future privatization risks.

The restructured CEB will not only improve efficiency but is also expected to enhance accountability and transparency within the organization. 

By: Staff Writer

November 05, Colombo (LNW): World Trade Expo WTE 2024, inaugurated by Maharashtra’s Governor Shri C.P. Radhakrishnan, provided an excellent forum for Sri Lankan businesses to establish meaningful connections with Indian counterparts.

The event concluded with a networking dinner, enabling further engagement and paving the way for promising bilateral trade relationships.

Sri Lanka’s participation underscored the country’s commitment to expanding its presence in India, with positive prospects for future trade collaborations, increased exports, and strengthened economic ties across sectors.

 The Consulate General of Sri Lanka in Mumbai, together with the Industrial Development Board and the Export Development Board of Sri Lanka organised the Sri Lanka Pavilion at the fifth edition of the World Trade Expo (WTE 2024).

 WTE 2024 was organised by the World Trade Center Mumbai in collaboration with All India Association of Industries (AIAI) from 17 to 18 October with a focus on trade, technology, tourism and education.

Over 30 countries, prominent state governments, institutions and trade bodies offering various opportunities across sectors participated in the event and facilitated bi-lateral trade, investment and education.

 Representatives of four Sri Lankan companies in the fields of Ceylon spices, coconut products, cocoa products, dehydrated fruits, and Ceylon tea, took part in the Sri Lankan Pavilion.

The expo was also an effective platform for MSMEs, women entrepreneurs, start-ups and other stakeholders to explore trade possibilities for collaborations, partnerships and technology transfers.

The World Trade Expo was inaugurated by Governor of Maharashtra, Shri C.P. Radhakrishnan, who was the chief guest of the event. Governor Radhakrishnan inaugurated the Sri Lankan pavilion.

 On the second day of the Expo, a series of country presentations were conducted to provide insights into various trade and investment landscapes. A

ctg. Consul General of Sri Lanka in Mumbai, Shirani Ariyarathne delivered a presentation on trade, tourism, and investment opportunities in Sri Lanka and its potential for growth and prospective partnerships.

Participants from Sri Lanka introduced new value added cinnamon, coconut and cocoa products, and dehydrated fruits and nuts to the Indian market during the expo.

 WTE 2024 concluded with a networking dinner for participants, facilitating valuable connections and discussions for future collaboration. The participating companies were able to establish productive connections that will further boost new business opportunities.

By: Staff Writer

November 05, Colombo (LNW): Following a travel warning from Israel’s National Security Council urging citizens to leave Sri Lanka due to a potential terrorist threat, the number of Israeli tourists in the country has plummeted from 514 to a mere 125.

Sources from the Sri Lanka Tourist Police Unit have reported that the few Israeli visitors still present are primarily located in popular tourist areas such as Ella and various destinations along the Southern coast.

On October 23, the National Security Council advised Israeli nationals to vacate tourist hotspots in the South, East, and West coastal towns due to the identified risk of attacks. It recommended that citizens either move to Colombo, where security forces are more concentrated, or consider leaving the country entirely.

The advisory further urged Israeli tourists to hide any indicators of their nationality and avoid crowded places.

The remaining 125 Israeli tourists hold three-month visas, leading to uncertainty about their intentions to either remain or depart in the coming weeks, according to the sources.

At the time the advisory was issued, Israeli travelers were primarily found in hotspots such as Arugam Bay, Pottuvil, Ahangama, Mirissa, Galle, Hikkaduwa, and Weligama—regions renowned for their surfing opportunities and relaxed coastal atmosphere.

Interestingly, despite the travel advisories from various countries including the US, UK, Australia, Russia, Canada, and New Zealand, tourist arrivals from other key markets have remained robust.

While these nations have cautioned their citizens regarding travel to Sri Lanka, there has not been a significant decrease in tourist numbers. Officials report that security measures have been bolstered across all major tourist locations nationwide.

In the first few days of November alone, over 20,000 international tourists have arrived, with no notable decline in visits following the advisories.

Six of the seven countries that issued warnings, with New Zealand being the exception, are among Sri Lanka’s top 20 source markets, together accounting for approximately 30% of total arrivals for 2024.

The initial advisory from the US Embassy in Colombo indicated credible threats of a potential attack in Arugam Bay, a popular surfing destination on the Eastern coast. This alert was quickly mirrored by similar warnings from other nations, including Israel.

To reassure international visitors, the Sri Lanka Tourist Police have confirmed that extensive security measures are being implemented. As the peak tourism season approaches, the industry aims to sustain its attractiveness to global travelers, striving to achieve a target of 2 million arrivals and $3 billion in revenue.

By: Staff Writer

November 05, Colombo (LNW): Under the new administration of the NPP government, export development is set to gain momentum as Sri Lanka renews its ties with Michelin, the global leader in tire manufacturing.

This partnership established under the new government is expected to boost economic growth through enhanced export strategies that align with Michelin’s international goals.

The collaboration reflects a commitment to supporting local industries and establishing long-term trade relationships that benefit the country’s economy.

This renewed collaboration between Michelin and the NPP-led government highlights a promising future for Sri Lanka’s export framework, positioning the country as a competitive player in the global rubber industry.

The NPP government’s support for Michelin exemplifies its proactive stance in fostering economic resilience and industrial growth, reinforcing Sri Lanka’s presence in international trade.

Michelin, the French tire giant, first entered Sri Lanka in 2018 through its acquisition of Camso-Loadstar, making it the largest French investor and one of the leading exporters in the country.

The company produces solid tires, tracks, and sprockets for the construction and material-handling sectors and employs nearly 6,000 people across the island.

On November 1, a high-profile delegation from Michelin met with Mangala Wijesinghe, the newly appointed Chairman of the Export Development Board (EDB), to discuss strategies for advancing Sri Lanka’s rubber manufacturing sector.

 The Michelin delegation included Eric Le Corre, Corporate Vice President of Public Affairs at Michelin’s France headquarters; Koenraad Pringiers, Public Affairs Consultant; and Nilanthi Weliwe, Head of Legal Affairs at Michelin’s local operations.

 During the discussions, Michelin’s representatives emphasized the need for proactive government policies to boost local rubber production, which would help increase the volume of value-added rubber products.

They also proposed expanding market access through Free Trade Agreements (FTAs) and advocated for the creation of a dedicated rubber zone to enhance the production of diverse rubber products on the island.

The EDB issued a statement underscoring the agency’s commitment to supporting Michelin’s growth in Sri Lanka, with EDB Chief Mangala Wijesinghe assuring that the new government would fully support Michelin’s export objectives through investor-friendly policies.

Michelin is globally recognized as the second-largest tire manufacturer, famous for inventing the detachable tire. With 123 production sites across 26 countries and a commercial presence in 170 nations, Michelin employs around 125,000 people worldwide.

In Asia, Michelin maintains a strong foothold in key markets, including Thailand, China, India, and Sri Lanka.

Since its entry into Sri Lanka in 2018, Michelin has manufactured and exported agricultural and industrial solid tires and tracks, and currently has nearly 6,000 employees throughout the island.

The EDB has closely collaborated with Michelin’s Sri Lankan operations, supporting the participation of technical personnel in workshops on tire compounding, technology, innovation, and research and development from 2018 to 2023.

The EDB also facilitated factory operations during the COVID-19 period, reinforcing its commitment to helping Michelin navigate operational challenges in Sri Lanka.