The Sri Lankan government on Tuesday said it will seek the advice of the Attorney General after the owning company of the MV X-Press Pearl refused to comply with a Supreme Court order to pay USD 1 billion in compensation for the 2021 marine disaster off Colombo.

The Singapore-flagged container vessel caught fire in May 2021 while carrying 81 containers of hazardous chemicals, including 25 tonnes of nitric acid. The fire raged for nearly two weeks, causing catastrophic marine pollution. Billions of plastic nurdles and toxic substances spilled into Sri Lankan waters, killing marine life and devastating coastal communities. Dead turtles, dolphins, and whales washed up on beaches for weeks following the disaster.

On July 24, 2025, the Supreme Court directed the ship’s owning and operating companies to pay USD 1 billion in compensation, with an initial tranche of USD 250 million due by September 23.

However, Cabinet Spokesman Dr. Nalinda Jayatissa told reporters that the Attorney General would advise the government on the next steps after reports indicated the owners were unwilling to comply.

Company CEO Shmuel Yaskovitz, quoted in foreign media, said the ruling undermined the principle of limitation of liability in maritime law, warning that compliance could set a “dangerous precedent” for future maritime incidents.

The Supreme Court described the X-Press Pearl fire as the worst marine chemical catastrophe in Indian Ocean history, ruling it a violation of Sri Lankan fisherfolk’s fundamental right to lawful occupation.

In parallel, Sri Lanka has also filed criminal proceedings against the ship’s captain, chief engineer, and chief officerover the disaster.

The Fundamental Rights (FR) petition challenging the appointment of High Court Judge Ranga Dissanayake as the Director General of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has been withdrawn before the Supreme Court today (23).

The petition was filed by a group including the Chief Incumbent of the Udawalawe Soma Viharaya, Ven. Wewelduwa Gnanaprabha Thero.

The case was taken up before a three-judge bench comprising Chief Justice Preethi Padman Surasena, Justice Mahinda Samayawardhena, and Justice Sampath Abeykoon.

During the hearing, the petitioner’s attorney sought permission to withdraw the application. The court accordingly granted permission and dismissed the petition.

President Anura Kumara Dissanayake has arrived in New York to attend the 80th Session of the United Nations General Assembly (UNGA).

The President’s flight landed at John F. Kennedy International Airport at approximately 8:50 a.m. (US time).

On arrival, President Dissanayake was welcomed by Sri Lanka’s Permanent Representative to the United Nations, former Chief Justice and President’s Counsel Jayantha Jayasuriya, along with members of the Sri Lankan delegation.

The President is accompanied on this official visit by Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath.

Showers will occur at times in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts. Fairly heavy falls of above 50 mm are likely at some places.Showers or thundershowers are likely at a few places in Uva province and in Ampara and Batticaloa districts after 2.00 p.m.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in Central, Northern, North-central and North-western provinces and in Trincomalee and Hambantota districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by lightning and temporary localized strong winds during thundershowers.

September 23, Colombo (LNW): Cabinet Spokesperson and Minister Dr Nalinda Jayatissa today (23) reiterated the government’s unwavering commitment to ensuring an uninterrupted supply of electricity, stating that power outages will not be tolerated under any circumstances.

Speaking at a media briefing, Dr Jayatissa defended the recent decision to cancel all leave for employees of the Ceylon Electricity Board (CEB), following the President’s directive classifying electricity services as essential. He emphasised that this measure was necessary to maintain stability in the country’s power sector.

“The government cannot and will not permit power cuts,” he stated. “Electricity supply is now designated an essential public service. What we are saying is simple: if you’re employed in this sector, you are expected to report for duty. If, for any reason, someone cannot continue, there is a compensation process. But the work must go on. These reforms are essential for the country’s progress.”

Addressing further questions about the ongoing restructuring efforts at the CEB, Dr Jayatissa said the goal is to reduce operational inefficiencies and bring down overall costs, which could ultimately result in lower electricity bills for consumers.

He acknowledged the growing concerns around rising tariffs, saying, “Yes, we want to provide relief—not just for industrial investors, but also for households and ordinary consumers. The way the current system operates, a blanket increase in electricity rates creates a number of problems. We need to approach the issue in a more targeted way.”

According to Dr Jayatissa, part of the strategy involves reassessing the structure of the CEB itself. Rather than running the board as a single, centralised entity, the government is exploring the possibility of separating different components—such as generation, transmission, and distribution—into more streamlined, semi-independent units.

“By analysing each segment individually, we can understand where the inefficiencies lie, and where improvements can be made,” he said. “If managed correctly, this will not only reduce costs but also make the system more responsive and accountable.”

By: Staff Writer

September 23, Colombo (LNW): Sri Lanka’s electricity pricing system came under sharp review this week as an International Monetary Fund (IMF) technical team met with Parliamentarians and government officials to examine reforms to the Ceylon Electricity Board’s (CEB) tariff methodology ahead of a key November 2025 deadline under the Extended Fund Facility (EFF) programme.

The joint session, led by IMF mission chief Delphine Prady, brought together the Committee on Public Finance (CoPF), the Committee on Public Enterprises (COPE), the Sectoral Oversight Committee on Infrastructure and Strategic Development, as well as officials from the Energy Ministry, Finance Ministry, CEB, and the Public Utilities Commission of Sri Lanka (PUCSL).

While described as a technical review rather than a policy-making exercise, Sri Lankan participants stressed that the tariff framework must strike a balance between cost reflectiveness, cost recovery, affordability, and renewable energy goals.

Cost Recovery and Investment

Officials noted that ensuring cost recovery is essential for the sector to meet its total expenditure, curb inefficiencies, and attract the financing and credit required for modernisation. Cost reflectiveness, meanwhile, would ensure consumers are billed in line with the actual cost of serving their demand, reducing the burden of cross-subsidies between customer categories. Without such measures, the power sector risks deepening losses and deterring investors.

Renewables at the Core

A central theme was Sri Lanka’s renewable energy target of 70% by 2030. Experts emphasised that achieving this will require not only expanding solar, hydro, and wind power but also investing in energy storage, transmission upgrades, and emerging technologies such as green hydrogen.

Thermal generation, while still part of the mix, was branded as “super expensive” and volatile, leaving the country exposed to global fuel price shocks. Renewables, though increasingly competitive, demand substantial upfront investment and long-term policy certainty.

Affordability and Consumer Protection

Participants highlighted the risks posed by volatile generation costs, stressing the need for accurate forecasting and predictable tariff structures to avoid sudden price shocks for households and businesses. MPs underscored the importance of protecting vulnerable consumers through targeted subsidies, safeguarding workers affected by restructuring, and ensuring that efficiency gains result in fairer outcomes for the public.

Governance and Transparency Gaps

The discussions also exposed weaknesses in governance, with concerns raised over incomplete cost breakdowns, opaque Power Purchase Agreements (PPAs), and inadequate information systems. Stronger regulatory independence and data integrity were deemed critical for applying an effective and credible tariff methodology.

Policy, Not Just Technicalities

Both IMF representatives and local stakeholders agreed that tariff reform cannot be approached as a purely technical task. Instead, it must be rooted in broader policy goals: building a financially viable electricity sector, accelerating the shift to renewables, protecting vulnerable groups, and enhancing transparency across the industry.

As the November deadline approaches, the debate highlights the difficult balancing act facing Sri Lanka keeping electricity affordable for consumers while ensuring the power sector’s sustainability and alignment with the country’s climate commitments.