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CEB Proposes 18.3% Tariff Hike despite Sharp Decline in Hydropower Sales.

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By: Staff Writer

May 26, Colombo (LNW): The Ceylon Electricity Board (CEB) has put forward a controversial proposal to increase electricity tariffs by 18.3% for the final seven months of 2025, even as hydropower sales—the country’s cheapest and cleanest energy source—have plunged by a staggering 61% in the first quarter of this year compared to 2024.

This move comes amid rising operational costs and a significant revenue shortfall that has deepened the board’s financial challenges.

Government statistics reveal that hydropower sales dropped from Rs. 1,119,999 million in Q1 2024 to Rs. 434,406 million in Q1 2025, marking a decline of Rs. 685,593 million.

The sharp fall has contributed to mounting losses at the CEB, which now seeks tariff revision approval from the Public Utilities Commission of Sri Lanka (PUCSL) to offset an anticipated Rs. 42.2 billion revenue gap.

According to the ‘Report on Financial Performance of the Government up to 1st Quarter Ending 31 March 2025,’ the total estimated expenditure for CEB and the Lanka Electricity Company (LECO) from June to December 2025 is Rs. 276.5 billion.

This includes Rs. 156.6 billion for energy expenses, Rs. 45 billion for capacity costs, and Rs. 14.1 billion in finance charges. However, projected revenue under the current tariff structure stands at only Rs. 230.7 billion, highlighting the scale of the deficit.

The tariff revision proposal accounts for recent fuel price adjustments, including auto diesel at Rs. 274 per litre, furnace oil at Rs. 167, naphtha at Rs. 131, and coal at Rs. 45.41 per kilogram, as well as an exchange rate of Rs. 303.33 per US Dollar. Finance costs have been updated based on the Average Weighted Prime Lending Rate (AWPLR) of 8.45%, estimating Rs. 14.06 billion in finance expenses.

CEB officials have expressed concern over the PUCSL’s clawback mechanism applied to operational expenditures earlier this year and unresolved issues regarding transmission revenue discrepancies. Revised distribution revenue caps for the second half of 2025 have been set across various distribution licenses (DL1 to DL4), reflecting ongoing regulatory challenges.

To alleviate financial pressures, the government approved several debt management strategies under Sri Lanka’s IMF-supported Extended Fund Facility (EFF) programme in February 2025. Measures include debt swaps, extended repayments, syndicated financing, and restructuring outstanding liabilities.

In response to queries about the sharp reduction in hydropower generation, CEB Spokesman clarified that hydropower output is largely constrained by factors beyond the board’s control.

Water releases at key hydroelectric sites such as Laxapana and Mahaweli are dictated primarily by drinking water requirements, determined through regular coordination meetings involving the CEB, Department of Irrigation, Mahaweli Authority, and the Environment Ministry.

“Power generation is not the priority when it comes to water release,” Wimalaratne emphasized, explaining that environmental and community needs dictate water flows, which in turn limits hydropower capacity.

Seasonal weather variability and extended dry periods further reduce hydro availability, forcing greater reliance on costlier thermal power plants and the Norochcholai coal plant, especially during nighttime when solar power is unavailable.

“If water is not released from Laxapana, downstream areas such as Labukele will face severe impacts,” he added, underscoring the complex balancing act between environmental management and energy production.

New Zealand Deputy Prime Minister reaffirms commitment to stronger Sri Lanka ties during official visit

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May 26, Colombo (LNW): New Zealand’s Deputy Prime Minister Winston Peters, currently on an official visit to Sri Lanka, has welcomed the island nation’s application to join the Regional Comprehensive Economic Partnership (RCEP), a significant move in Sri Lanka’s efforts to deepen its engagement with the wider Asia-Pacific economic framework.

During his visit, Mr Peters met with Sri Lankan Foreign Minister Vijitha Herath, with whom he engaged in wide-ranging discussions encompassing bilateral trade, investment prospects, regional security, and development cooperation. The two leaders underscored the importance of fostering mutually beneficial partnerships, with a particular focus on sectors such as agriculture, tourism, and public health.

The New Zealand delegation, led by Mr Peters—who also serves as Minister of Foreign Affairs—arrived in Sri Lanka on Saturday. The visit aims to build upon the enduring relationship between the two countries, rooted in shared values, regional collaboration, and longstanding development partnerships.

In a formal statement issued during the visit, Mr Peters highlighted the legacy of cooperation between the two nations, particularly in areas of food security, disaster response, and community resilience. He also announced the launch of a new bilateral initiative, the Sustainable Water and Livelihoods project, which is set to enhance both health and income outcomes for farming communities in Sri Lanka.

Mr Peters noted that “increasing engagement by New Zealand enterprises in Sri Lanka reflects a growing confidence in the country’s potential.” He indicated that New Zealand firms are eyeing opportunities across a number of sectors, with new ventures expected to generate tangible benefits for Sri Lankan partners and communities.

The discussions also touched upon institutional cooperation between the two governments, particularly in the areas of food safety, border control, and regulatory frameworks. Peters stressed the value of harmonised standards in facilitating smoother trade and greater market access for Sri Lankan exports.

Acknowledging the broader geopolitical climate, both parties exchanged views on the Indo-Pacific region’s evolving security dynamics. They reaffirmed their commitment to collaboration in immigration, customs, policing, and defence—pillars seen as essential to regional stability.

As part of the visit, New Zealand reaffirmed its educational and professional development support for Sri Lanka. Several short-term trade policy training opportunities will be extended to Sri Lankan officials under the Manaaki New Zealand Scholarship Programme, further deepening institutional linkages.

Mr Peters also made a point to celebrate the cultural and sporting ties between the two nations, praising the camaraderie and competitive spirit shown during a recent visit by New Zealand’s under-85kg men’s rugby team. He expressed hope for more such exchanges on both the rugby and cricket fields, involving men’s and women’s teams alike.

Concluding his remarks, Deputy Prime Minister Peters extended his appreciation to the Sri Lankan government for the warm welcome extended to his delegation, expressing optimism for a strengthened partnership built on mutual respect and shared ambition.

Ex-Minister Mahindananda Aluthgamage released on bail amid fertiliser procurement scandal

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May 26, Colombo (LNW): Former Agriculture Minister Mahindananda Aluthgamage has been granted bail following his recent arrest in connection with a controversial fertiliser procurement deal that took place during a previous government.

The case centres around the importation of an allegedly substandard batch of organic fertiliser from a Chinese supplier in 2021—a transaction that has since drawn scrutiny over its handling and transparency.

The Colombo Chief Magistrate, Thanuja Lakmali, issued the bail order after hearing arguments from both the prosecution and the defence earlier today. The court decided to release Aluthgamage on a cash bail of Rs. 50,000, in addition to five surety bonds valued at Rs. 1 million each. As part of the conditions, two of the guarantors must be close relatives of the accused.

In a move reflecting the gravity of the allegations, the court also imposed a travel ban on the former minister and ordered the surrender of his passport. Furthermore, Aluthgamage has been strictly warned against attempting to contact or influence any witnesses involved in the investigation. He has also been instructed to fully cooperate with the ongoing legal proceedings.

The former minister was brought before the Colombo Magistrate’s Court by prison officials this morning, following his surrender on May 19 in response to an arrest warrant issued earlier that week.

The warrant had been granted upon a request by the Commission to Investigate Allegations of Bribery or Corruption (CIABIC), which is probing suspected irregularities in the fertiliser procurement process during Aluthgamage’s time in office.

His legal team had previously sought anticipatory bail, expressing concern that he could be taken into custody as the corruption inquiry progressed. The court initially remanded him pending further submissions from the Bribery Commission.

Nation Gathers to Bid Farewell to Legendary Actress Malini Fonseka at Independence Square

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May 26, Colombo (LNW): A solemn farewell is underway in Colombo as crowds gather at Independence Square to pay their final respects to one of Sri Lanka’s most beloved cinematic icons, Malini Fonseka, who passed away on May 24 at the age of 78.

The revered actress, known affectionately as the “Queen of Sinhala Cinema,” breathed her last while undergoing medical treatment at a private hospital in the capital. Her passing has sent waves of grief across the country, with fans, colleagues, and dignitaries mourning the loss of a towering figure in Sri Lanka’s cultural and artistic heritage.

Her remains were brought to Independence Square earlier today, where the public has been given an opportunity to pay their respects. The viewing will remain open until 3.00 p.m., after which the final rites are scheduled to begin at 3.30 p.m. A number of political figures, fellow artists, and admirers from all walks of life are expected to be in attendance.

In anticipation of the large turnout, police have implemented temporary traffic restrictions in the vicinity. While full road closures are not in effect, movement along Independence Avenue—from the Independence Roundabout to the Ministry of Public Administration Junction—will be limited for approximately 15 minutes to facilitate the funeral procession. Motorists have been advised to expect delays and use alternative routes, particularly on Independence Avenue and Premakeerthi de Alwis Mawatha, where congestion is likely.

Malini Fonseka leaves behind a legacy that spans decades, having starred in over a hundred films and numerous television dramas. Her artistry earned her acclaim both at home and abroad, and she remained an enduring presence in Sri Lanka’s creative landscape well into her later years.

Tragedy at Wayamba National College of Education sparks national outcry and probe

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May 26, Colombo (LNW): A sombre cloud has settled over the Wayamba National College of Education in Bingiriya following the tragic death of a second-year student, prompting the Ministry of Education to initiate an urgent inquiry into the circumstances surrounding the incident.

The young woman, originally from Teldeniya in the Kandy district, was found deceased in her dormitory in what authorities suspect to be a case of suicide. The incident has stirred shock and grief among the academic community, with questions arising over the pressures faced by students within the institution.

Friends of the deceased have alleged that the emotional burden inflicted by certain lecturers at the college may have been a contributing factor. They claim that persistent harassment left her deeply distressed, ultimately pushing her beyond her limits.

Her family too has expressed similar concerns, suggesting that psychological strain may have played a key role in her untimely death.

In response to a media inquiry, P.V. Lal Kumara, President of the Wayamba National College of Education, confirmed he had been made aware of the Ministry’s decision to launch an official probe into the matter.

In a show of solidarity and concern, fellow students from the college gathered for a silent protest on May 23. The demonstration, which extended well into the night, called for meaningful and immediate action from the institution’s leadership. Protesters held placards and observed moments of silence, demanding structural changes to ensure student welfare is prioritised and such tragedies are not repeated.

Traffic restrictions around Independence Square for state funeral of film legend Malini Fonseka

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May 26, Colombo (LNW): Motorists in Colombo have been advised to expect temporary traffic disruptions today as the final farewell to legendary actress Malini Fonseka takes place at Independence Square.

The funeral, scheduled with full state honours, will be held from 4.00 pm to 6.00 pm and is expected to draw large crowds, including prominent figures from the arts, politics, and public life.

Authorities have announced that whilst roads in the vicinity will not be entirely closed, vehicle access will be intermittently limited to facilitate the ceremonial proceedings. Police have requested the public to cooperate with traffic officers on duty and urged commuters to use alternate routes where possible to avoid delays.

The late Malini Fonseka, a towering figure in Sri Lankan cinema, passed away in Colombo on Saturday at the age of 78. Her contributions to the silver screen, spanning over five decades and more than 150 films, earned her the title “Queen of Sinhala Cinema”—a title bestowed not merely for her prolific body of work, but for the indelible mark she left on the nation’s cultural landscape.

Her body, which lay in state at the National Film Corporation premises on Sunday for public homage, is set to be transported to Independence Square this morning ahead of the funeral. There, under the fading evening light, the nation will bid farewell to an artist whose work touched generations and brought the stories of Sri Lankan society to life.

HRCSL pushes for LGBTQIA+ equality: Time to scrap colonial-era laws

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By: Isuru Parakrama

May 26, Colombo (LNW): In a significant move for LGBTQIA+ rights in Sri Lanka, the Human Rights Commission of Sri Lanka (HRCSL) has issued a renewed and strongly-worded appeal to the Ministry of Justice, urging the government to finally repeal sections 365 and 365A of the Penal Code—outdated provisions that criminalise consensual same-sex relationships.

In a formal letter dated 22 May 2025, addressed to Justice and Nation Integration Minister Harshana Nanayakkara, the HRCSL reiterated its longstanding recommendation to eliminate these discriminatory legal relics. Sections 365 and 365A, dating back to colonial times, classify same-sex relations as “unnatural offences” and “acts of gross indecency,” forming the legal backbone for the ongoing persecution and marginalisation of the LGBTQIA+ community in Sri Lanka.

The Commission’s letter follows earlier communications in November 2023 and August 2024, as well as a landmark Supreme Court determination in 2023 that affirmed the constitutionality of a Private Member’s Bill aimed at decriminalising consensual same-sex activity. The Court stated unequivocally that the “removal of criminalisation of intimate acts between consenting adults… would uphold the dignity of human beings” and align with Article 12(1) of the Constitution, which guarantees equality before the law.

Moreover, the HRCSL welcomed the enactment of the Women Empowerment Act, No. 37 of 2024, which explicitly recognises non-discrimination on the grounds of sexual orientation—a significant legislative first for Sri Lanka. Similarly, the Assistance to and Protection of Victims of Crime and Witnesses Act, No. 10 of 2023, considers sexual orientation a potential factor of vulnerability, further reinforcing the legitimacy of LGBTQIA+ protection within the country’s legal framework.

Despite these progressive legal strides, the HRCSL expressed grave concern over the increasing hostility targeting the LGBTQIA+ community. According to the Commission, recent campaigns featuring physical demonstrations, hate speech, and digital misinformation—falsely claiming that decriminalisation equates to the legalisation of same-sex marriage—have created a climate of fear and intimidation.

These actions, often driven by coordinated and organised groups, contradict Sri Lanka’s constitutional commitments and its international obligations under the International Covenant on Civil and Political Rights (ICCPR).

The ICCPR’s supervising body has already condemned the criminalisation of same-sex relationships in Sri Lanka as a violation of multiple rights, including protection from torture, the right to privacy, and freedom from discrimination. During Sri Lanka’s Third Universal Periodic Review in 2017 and again in 2023, the government pledged to strengthen protections for LGBTQIA+ individuals—a commitment the HRCSL now insists must be honoured through concrete legal reform.

It urges the Ministry of Justice to adopt the Private Member’s Bill as a government-sponsored legislative initiative, expediting its passage through Parliament. Doing so, the HRCSL argues, would not only fulfil Sri Lanka’s international obligations but also send a powerful message of inclusion and respect for diversity.

In the face of mounting challenges, the HRCSL’s emphasised that equality cannot be conditional, and dignity is not negotiable. Decriminalising consensual same-sex relationships is not about extending special rights—it is about affirming basic human rights for all Sri Lankans.

Showers, thundershowers expected across multiple provinces: Heavy falls above 75 mm to occur (May 26)

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May 26, Colombo (LNW): Showers or thundershowers will occur at times in Western, Sabaragamuwa and North-western provinces and in Nuwara-Eliya, Kandy, Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (26).

Fairly heavy falls above 75 mm are likely at some places.

A few showers may occur elsewhere.

Strong winds of about (40-50) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central, Southern and North-western provinces and in Trincomalee and Monaragala districts.

Marine Weather:

Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle. Showers or thundershowers may occur at a few places over the other sea areas around the island.

Winds:
Winds will be south-westerly in the sea areas around the island.
Wind speed will be (40-50) kmph and wind speed may increase up to (60-70) kmph at times in the sea areas off the coast extending from Chilaw to Kankasanthurai via Puttalam and Mannar and from Matara to Pottuvil via Hambanthota.

Wind speed will be (30-40) kmph and wind speed may increase up to (50-55) kmph at times in the sea areas off the coast extending from Chilaw to Matara via Colombo and from Kankasanthurai to Trincomalee via Mullaittivu.

State of Sea:
The sea areas off the coast extending from Chilaw to Kankasanthurai via Puttalam and Mannar and from Matara to Pottuvil via Hambanthota will be very rough at times and Naval and fishing communities are advised not to venture into these sea areas, until further notice.

The sea areas off the coast extending from Chilaw to Matara via Colombo and from Kankasanthurai to Trincomalee via Mullaittivu will be rough at times.

The wave height may increase (about 2.0 – 3.0 m) in the sea areas off the coast extending from Mannar to Pottuvil via Puttalam, Colombo, Galle and Hambantota (this is not for land area).

Naval and fishing communities are requested to be vigilant in this regard.

Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

A Farewell to the Queen of Hearts: Celebrating Malini Fonseka

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Today, we say goodbye to Malini Fonseka. But we are not here to be sad. We are here to celebrate a beautiful life that brought hope and courage to so many people.

Everyone knew Malini as the queen of Sinhala cinema. For many years, she acted in movies that made people laugh, cry, and happy. Families would sit together to watch her films. Her acting was so real that people felt she understood their lives.

But for us, we knew Malini differently. To us, she was the queen of hearts. She was brave, kind, and always ready to help others. Just like Indira Jayasuriya, who fought cancer with strength, Malini showed us what real courage looks like.

We knew a story.

When Indira Cancer Trust asked her to help tell people about breast cancer, she said yes right away. She didn’t just become a spokesperson; she became much more than that. She became a heroine, a teacher, and a friend.

Malini had breast cancer herself. She knew how scary it could be. She knew the fear that comes when a doctor gives you bad news. She knew about the treatments, the pain, and the worry. But she also knew something else – she knew that cancer could be beaten.

When she sat in that yellow blouse for the Indira Cancer Trust’s breast cancer awareness campaign, she wasn’t acting. She was being herself – a woman who had faced cancer and won. Her message was simple but powerful: “Don’t be afraid. Fight back. You can win this battle, too.”

Her words weren’t just words. They were the truth from someone who had lived through it. When she told people to be brave, they listened because they knew she had been brave, too. When she said cancer could be defeated, they believed her because she was living proof.

Because of Malini, many women went for check-ups. Many cancers were found early. Many lives were saved. But her gift was bigger than just the numbers. She gave people something precious – hope.

When a woman got scary news from her doctor, she could remember Malini’s face and think, “If she can do it, so can I.” When families felt lost and afraid, they could remember her message of courage. When doctors and nurses worked hard to help patients, they could think of Malini and know their work mattered.

Malini understood that helping people was more important than being famous. She knew that her most important job wasn’t acting in movies. Her most important job was helping people fight cancer and win.

Even though she was sick herself, she chose to help others. She didn’t complain. She didn’t hide. Instead, she stood up and said, “Look at me. I had cancer, and I’m still here. You can be here too.”

She knew that being truly great meant helping other people. Her best performances weren’t in movies – they were in real life, in hospital rooms where she comforted sick people, in meetings where she spoke about cancer, and in quiet moments when she gave hope to people who had lost it.

Malini lived her life completely. She gave everything she had to help others. She showed us that when someone lives like this, death cannot take away what they built. Her love, courage, and kindness live on in everyone she helped.

Her story continues every time someone finds courage because of her example, every time a life is saved through early detection, and every time a family keeps hope alive during hard times.

Even in the end, Malini faced death the same way she faced everything else – with grace, strength, and dignity. She never stopped being the brave woman who taught others to be brave, too.

Today, we don’t say goodbye to Malini. We say thank you. Thank you for your movies, which brought joy to so many families. Thank you for your courage, which saved so many lives. Thank you for your big heart, which made our world better.

Thank you for showing us that real queens aren’t born—they become queens by serving others, being kind, and never giving up on helping people.

The queen of cinema has left us, but the queen of hearts will always be with us. She lives on in every person she helped save, every moment of courage she inspired, and every act of love she taught us to give.

Her message will never die: Be brave, don’t give up, help each other, and love wins.

Thank you, dear Malini. You did good work. You lived a beautiful life. Now rest in peace, knowing that your love continues through all of us.

Friends of Malini

Coconut Shortage and Palm Ban Threaten Edible Oil Supply

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By: Staff Writer

May 25, Colombo (LNW): Sri Lanka is grappling with a deepening crisis in the coconut and palm oil industry, triggered by a severe shortage of coconuts and soaring global palm oil prices sky rocketing edible oil prices.

A complete ban on oil palm cultivation as a substitute crop, along with a restriction on oil palm imports, is threatening the industry, potentially leading to a halt in domestic production within the next 3-4 years. The government’s position is still uncertain, with no clear indication of when the ban may be lifted.

Without altering current import duties, the government could allow the import of alternative products such as palm oil, palm olein, and similar substitutes while granting farmers’ limited permission to grow oil palm on unused or barren land, several leading palm oil industrialists said.

It also  has to only approve new palm oil plantations for companies willing to export their products as a solution to tackle this problem he said adding that it is essential to  support the rehabilitation of at least 5 out of the 10 closed factories to resume export-oriented production.

Sena Suriyapperuma economic and financial analyst and industry expert suggested to promote palm cultivation partnerships between refining companies and smallholder farmers, increasing rural income.

As the nation struggles to meet domestic demand, essential foreign exchange continues to drain from the economy, he pointed out. 

The annual consumption of coconut oil in Sri Lanka is high, at 240,000 metric tons while, only 40,000 metric tons are locally produced.

In the present, reduced duties on coconut oil imports are costing Sri Lanka valuable foreign exchange.

For instance, in December 2024, the global CIF (Cost, Insurance, and Freight) price of a metric ton of palm oil stood at US$ 1,220. As of now, that price has nearly doubled to $2,680 per ton.

Even with basic calculations, it becomes clear that Sri Lanka imports approximately 120,000 metric tons of palm oil annually.

This results in a significant outflow of foreign exchange, with the country losing around $1,530 per ton. That adds up to $ 153 million leaving the economy each year. The million dollar question is whether the country can continue to bear such a loss, Mr Suriyapperuma asked.

Oil palm’s productivity is nearly four times that of coconut oil, and increasing coconut oil production would require more time and land, making oil palm a more efficient solution for both local supply and foreign exchange earnings, he revealed.

President of Palm Oil Industry Association of Sri Lanka (POIASL) Dr. Rohan Fernando has renewed its clarion call for the Government to lift the ban on oil palm cultivation, insisting on its significant economic, environmental and strategic benefits).

The present regime is yet to take a decision on lifting the ban, despite the scientific evidence that oil palm is the most efficient vegetable edible oil and that more than 40 percent of the world demand is met by this golden crop, he pointed out.