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Experts Reject CEB’s Justification for Power Tariff Increase

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By: Staff Writer

June 09, Colombo (LNW): Economist and Parliamentarian Dr. Harsha de Silva has strongly criticised the Ceylon Electricity Board’s (CEB) proposed electricity tariff revision for the second half of 2025, calling it fundamentally flawed and lacking transparency.

Speaking at the Public Utilities Commission of Sri Lanka’s (PUCSL) public consultation on 3 June at BMICH, Dr. de Silva dismantled several elements of the CEB’s financial assumptions, accusing the utility of misrepresenting its financial position to justify tariff hikes.

One of the key concerns raised was the CEB’s reported Rs. 144 billion loss for 2024, which, according to Dr. de Silva, includes a misleading Rs. 62 billion ‘clawback’—an advance payment collected from consumers.

 Of this, Rs. 51 billion relates to the January-July period and Rs. 25.5 billion to the first quarter alone. “If these clawbacks are accounted for correctly, CEB would show a Rs. 7 billion profit in Q1, undermining their projected Rs. 42.2 billion loss for H2 2025,” he explained.

Dr. de Silva, also Chair of the Committee on Public Finance (CoPF), criticised the CEB for altering approved revenue figures mid-year—something he said is against standard financial practice. Expert analyses, he noted, also object to these revisions, highlighting that any such changes must follow proper regulatory procedures.

He further questioned the inclusion of a Rs. 14 billion finance cost in the tariff proposal, Rs. 5.2 billion of which stems from legacy debt under restructuring. “These historic debts should not burden current or future customers.

 It violates the principle of cost causation,” Dr. de Silva argued, comparing it to previous government financial missteps that contributed to Sri Lanka’s Rs. 20 trillion debt crisis.

A major technical flaw, he said, is the CEB’s attempt to recover Rs. 8.3 billion in Q1 2025 losses by adjusting tariffs for the July–December period.

This approach, he warned, distorts established tariff methodology, which requires comparisons over matching timeframes—either quarter-to-quarter or half-year-to-half-year. “Mixing time periods misaligns the data and manipulates outcomes.

This cannot be accepted,” he said, urging the PUCSL to ensure consistency in any tariff adjustment model.

The CEB is currently facing financial strain, largely due to the 20–22% electricity tariff cut granted to domestic users from January to June 2025. It is now proposing a hike to recover losses, in line with the cost-reflective pricing model required under Sri Lanka’s agreement with the International Monetary Fund (IMF). This model ensures that any profits from January–June are returned to consumers, while losses can justify hikes.

Available data indicates the CEB posted a Rs. 51 billion profit during January–June 2024, and if current operations are compared year-on-year, it suggests the utility should generate Rs. 90 billion more this year. Based on this, Power and Energy expert asserted that tariffs should be reduced—not increased.

The PUCSL has asked the CEB to submit updated data on the Bulk Supply Transaction Bank Account (BSTBA) to assess its true financial state.

A final tariff decision is due by 1 July, in line with IMF structural benchmarks. Approval of the revised tariff is crucial for Sri Lanka to secure the next US$344 million tranche under the IMF’s Extended Fund Facility by June, as confirmed by IMF Mission Chief Evan Papageorgiou.

The IMF has also expressed concerns about the CEB’s financial health and the risk of further losses from past tariff reductions, adding pressure on both the utility and the regulator to get the numbers—and decisions—right.

Sri Lanka Taps Mannar Wind Power with U$50 Million Private Sector Boost

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By: Staff Writer

June 09, Colombo (LNW): Sri Lanka is making major strides in renewable energy development with significant progress in wind power projects in the Mannar region, reinforcing its goal to transition to 70% renewable energy by 2030.

Spearheading this shift, Hayleys Fentons’ new wind energy subsidiary, HayWind, has secured a Power Purchase Agreement (PPA) with the Ceylon Electricity Board (CEB) to build a 50MW wind power plant in Mannar.

 The project, won through a competitive bidding process at the lowest tariff of 4.65 US cents per kilowatt-hour, marks a strategic $50 million investment on a Build, Own, and Operate (BOO) basis.

Scheduled for completion within 18 months, the plant will feature 10 wind turbines, each generating 5MW.

Once operational, it is expected to deliver clean, affordable energy to the national grid and result in significant cost savings—an estimated Rs. 3 billion over 20 years compared to the next best alternative bid.

This move is part of Sri Lanka’s broader effort to reduce fossil fuel dependency, cut emissions, and ensure long-term energy affordability and sustainability.

In addition to HayWind’s project, the 100MW Thambapavani Wind Farm, already operational on Mannar Island, is generating 400 GWh of electricity annually and supplying it to the national grid.

As part of its ongoing commitment, the Sri Lanka Sustainable Energy Authority (SLSEA) is now surveying land on Mannar Island to develop an additional 200MW in a second-phase expansion.

Minister of Power, Engineer Kumara Jayakody, emphasized the government’s determination to leverage the nation’s natural resources—abundant wind and sunlight—for energy independence.

 During an official inspection of Mannar’s wind project sites, he confirmed that tenders have already been called for a proposed 100MW wind plant in Mullikulam.

Senior officials from the Ministry of Energy, including Secretary Prof. K.T.M. Udayanga Hemapala, praised the HayWind initiative as a timely and strategic investment in Sri Lanka’s clean energy future.

“It exemplifies the collaborative spirit needed to meet our renewable energy goals and strengthen energy security,” he stated.

Hayleys PLC Chairman and CEO Mohan Pandithage highlighted the company’s leadership in renewable investment, noting that Hayleys is aligning with Sri Lanka’s net-zero targets while targeting net-zero operations of its own by 2035.

Hasith Prematillake, Managing Director of Hayleys Fentons, added that their vision is to become the lowest-cost renewable energy producer in the country while contributing to foreign exchange savings.

CEB General Manager Wasantha Edussuriya noted that the integration of wind energy into the national grid will help build a more resilient and sustainable power infrastructure.

Roshane Perera, Director and CEO of Hayleys Solar, further emphasized the capabilities of local companies, citing Hayleys Solar’s successful track record with over 300MW in solar EPC projects and 200MW in renewable energy investments.

This new chapter in Sri Lanka’s energy journey not only marks Hayleys Fentons’ entry into wind power but also reflects the country’s firm commitment to clean energy, economic sustainability, and climate action.

Businesswoman and wife of ex-state minister arrested in high-profile tax evasion case

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June 09, Colombo (LNW): Kushani Nanayakkara, a prominent entrepreneur and the spouse of former State Minister Dunesh Gankanda, has been apprehended by officers of the Central Crimes Investigation Bureau (CCIB) in connection with a major tax evasion inquiry.

Her arrest follows the issuance of an open warrant by the Colombo Magistrate’s Court after she failed to appear in court on multiple occasions relating to the case.

Nanayakkara, who holds directorial positions in several companies, including Green Lanka Travels, Green Seed Lanka, and Green Sri Lanka Shipping, is accused of wilfully avoiding payment of income taxes amounting to over Rs. 700 million.

The case, initiated by the Inland Revenue Department, alleges that she failed to declare substantial earnings over a number of financial years, despite receiving repeated reminders and official notices from tax authorities.

According to legal sources, the Inland Revenue Department took steps to initiate formal legal proceedings after attempts to secure voluntary compliance were unsuccessful.

The court had initially issued three separate summons for Nanayakkara to appear before a magistrate, all of which went unanswered. This led to the issuance of an open warrant and a special judicial directive to the Acting Inspector General of Police, calling for her immediate apprehension.

Following this order, a targeted operation was carried out by the CCIB under the oversight of Senior Superintendent of Police Shani Abeysekara. Nanayakkara was located and taken into custody in the Narahenpita area on Saturday.

She is expected to be brought before court to face the allegations levelled against her, with further legal proceedings likely to follow.

Covid resurgence: PHI Union Chief asserts no mandatory mask directive currently in place

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June 09, Colombo (LNW): Amid reports of rising COVID-19 infections in several parts of the world, including neighbouring India, Sri Lankan health officials have advised the public to remain cautious and adhere to basic preventive measures, even though no mandatory mask directive is currently in place.

Upul Rohana, President of the Public Health Inspectors’ Union, speaking during a televised interview, noted that while face coverings are no longer a legal requirement, individuals are encouraged to use their discretion, particularly in crowded or poorly ventilated environments.

He highlighted that people with respiratory conditions or chronic illnesses should strongly consider wearing masks as a personal precaution, given their increased vulnerability.

Rohana stressed that the union is not advocating for a blanket policy requiring the public to wear masks at all times, nor are they discouraging mask use altogether. Instead, he said the approach should be measured and guided by individual circumstances, cautioning against creating either unwarranted fear or a false sense of security.

Addressing concerns about large-scale testing, the health official stated that mass random PCR screenings are not being considered at this time, citing both practicality and the current epidemiological context.

He did, however, emphasise the importance of remaining vigilant and continuing to observe the hygiene habits that became commonplace during the height of the pandemic.

According to Rohana, the Sri Lankan public is already familiar with the core practices that help reduce viral transmission, such as regular handwashing and avoiding close contact with those who show symptoms of illness.

He encouraged the public to revisit these habits, especially those in high-risk categories or those planning to travel.

Planned water disruption in Gampaha District due to infrastructure works

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June 09, Colombo (LNW): Residents across several parts of the Gampaha District are being advised to prepare for a scheduled 10-hour interruption to their water supply on Wednesday (11), as announced by the National Water Supply and Drainage Board (NWSDB).

The disruption, which will take place from 8:30 a.m. to 6:30 p.m., will affect a number of key localities including Peliyagoda, Wattala, Ja-Ela, and areas governed by the Katunayake-Seeduwa Urban Council. In addition, residents living within the Kelaniya, Biyagama, Mahara, Dompe, Katana, Minuwangoda, and Gampaha Pradeshiya Sabha jurisdictions are also expected to experience a complete halt in water supply during this period.

The temporary suspension is necessary to facilitate the integration of a newly installed solar power system at the Biyagama Water Treatment Plant with the national electricity grid, according to officials from the NWSDB.

The NWSDB has expressed regret for any inconvenience caused and assured that every effort will be made to restore services promptly once the work is completed.

Health officials warn of surge in respiratory illnesses amid prolonged rainy spell

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June 09, Colombo (LNW): Health authorities have raised concerns over a noticeable increase in respiratory illnesses across the country, attributing the trend to the persistent wet weather that has gripped several regions in recent weeks.

The Ministry of Health has reported a sharp uptick in cases of colds, flu, and other respiratory infections, particularly among vulnerable groups.

Epidemiologist Dr Athula Liyanapathirana has called on the public to remain cautious and to take proactive steps to safeguard their health.

He emphasised the importance of adhering to basic preventive measures such as maintaining good hygiene, avoiding exposure to crowded or poorly ventilated areas, and seeking medical advice early if symptoms arise.

Of particular concern are individuals with pre-existing health conditions, including diabetes, asthma, and heart disease, who are more susceptible to complications during periods of fluctuating weather.

Dr Liyanapathirana urged these high-risk groups to be especially vigilant, as their immune systems may be compromised, making them more prone to infections.

The continued damp and cool conditions have created an environment conducive to the spread of respiratory viruses, with hospitals and clinics reportedly seeing a steady rise in patient numbers over the past fortnight.

Health workers are being advised to stay alert and ensure appropriate medical interventions are offered promptly to minimise the risk of severe illness.

Authorities have also recommended that schools, workplaces, and households take simple precautions, such as keeping indoor spaces dry and well-ventilated, and ensuring that children and the elderly—who are particularly vulnerable—are protected from sudden changes in temperature.

Top prisons official grilled in expanding probe into alleged unlawful inmate releases

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June 09, Colombo (LNW): An ongoing investigation into the suspected misuse of presidential pardons has taken a dramatic turn, with the Commissioner General of Prisons, Thushara Upuldeniya, subjected to over ten hours of questioning by the Criminal Investigation Department (CID) on Saturday.

This follows a prior session the night before, during which he was interrogated for five hours.

The inquiry stems from a complaint lodged by the Presidential Secretariat, which alleges that the privilege of presidential clemency was misapplied to secure the release of inmates who had not officially been granted such pardons.

The complaint has triggered a high-level probe into possible procedural violations and abuse of authority within the prison system.

Central to the unfolding controversy is an incident involving the release of an inmate from Anuradhapura Prison on Vesak Poya Day. The prisoner, W.H. Athula Tilakaratne, was reportedly freed on the grounds that he had received a presidential pardon in line with Vesak observances.

However, this claim was swiftly refuted by the Presidential Secretariat, which clarified that no such clemency had been granted in his case.

In connection with this release, a senior superintendent from the Anuradhapura Prison was taken into custody by CID officers on Saturday afternoon. The 52-year-old official, a resident of Kalutara South, is expected to be produced before the Anuradhapura Magistrate’s Court today as investigations continue to unfold. Authorities believe his actions may have been instrumental in facilitating the unlawful release.

Public Security Minister Ananda Wijepala confirmed that the incident has led to a wider investigation into past cases where convicts may have been released without proper authorisation.

He stressed that any officials found complicit in circumventing legal procedures would face the full force of the law.

Key Reshuffle in Police: CIABOC gets new Investigations Director

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June 09, Colombo (LNW): Fifteen officers from the Sri Lanka Police, including several in senior ranks, have been reassigned to new posts with immediate effect.

The transfers and appointments, sanctioned by the National Police Commission, are part of ongoing efforts to streamline operations and enhance efficiency across multiple divisions.

Amongst the most prominent changes, Senior Superintendent of Police Mohan Lal Siriwardena has assumed the role of Director of Investigations at the Commission to Investigate Allegations of Bribery or Corruption.

His prior experience leading the Financial Crimes Division within the Criminal Investigation Department (CID) is expected to lend significant weight to his new post, particularly as the country steps up its focus on tackling high-level financial misconduct.

Several shifts have also occurred within the CID, indicating a strategic bolstering of investigative capacity. Superintendent of Police A.S.K. Bandara has been reassigned from the Ampara Division to the CID, whilst Assistant Superintendents of Police W.T. Anuranga and B.L.A. Prasanna have been moved from Mount Lavinia and Elpitiya Divisions respectively. Prasanna’s post in Elpitiya has now been filled by ASP M.D.P. Deepthi Kumara, reflecting a direct swap between the two officers.

Numerous Chief Inspectors and Inspectors have also been repositioned, impacting police leadership in regions such as Balangoda, Badulla, Delft, Udawalawe, Gampola, and Batticaloa. These include the transfer of CI J.D.D.C. Jayakody from the role of Officer-in-Charge (OIC) in Balangoda to the Badulla Division, whilst CI W.D.K.C. Navaratne has been posted to Balangoda in return.

Further notable changes include CI R.P.C.U. Rajapaksa’s move to lead the Udawalawe Police, CI B.P.L. Fernando’s shift from Gampola HQ to the eastern city of Batticaloa, and CI K.M.D.N.D. Kannangara’s return to Gampola HQ after serving in Delft. Other transfers affect areas ranging from Ankumbura and Matale to Nawakurunduwatte and Gampaha, illustrating the breadth of the realignment.

At the Inspector level, M.H.N. Tharaka has been reassigned from Bemmulla to Poovarasankulam, whilst S.M.N.N. Siripathi will take over responsibilities at Bemmulla Police Station.

Railways roll out special services for Poson pilgrims journeying to sacred sites

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June 09, Colombo (LNW): In anticipation of the annual Poson Poya pilgrimage, Sri Lanka Railways has introduced a series of dedicated train services aimed at easing the travel burden for thousands of devotees making their way to the historic city of Anuradhapura and the sacred site of Mihintale.

The enhanced rail operations began earlier today and are set to continue until June 12.

To meet the seasonal demand, 20 special trains have been scheduled to run from Colombo Fort to Anuradhapura. In a gesture of goodwill and support for religious observance, 36 complimentary services will also operate between Anuradhapura and Mihintale—offering a vital transport link for those undertaking the spiritual journey.

Railway authorities have assured that sufficient return journeys from Anuradhapura to Colombo will be made available throughout the Poson period, ensuring that pilgrims can travel with minimal inconvenience.

The Department of Railways has encouraged the public to make full use of these temporary services, reminding passengers to prioritise safety, especially in crowded stations and carriages.

Government veterinarians stage nationwide protest amid growing frustration over professional recognition

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June 09, Colombo (LNW): Public sector veterinary surgeons across Sri Lanka commenced a token strike early this (09) morning, expressing their growing dissatisfaction over what they describe as systematic obstruction of their professional development by senior bureaucrats.

The industrial action, which began at 6 a.m., marks a coordinated effort by the State Veterinary Surgeons’ Association to bring longstanding grievances into the public eye.

Speaking at a briefing in Colombo, the Association’s Chairman, Dr Upul Ranjith Kumara, outlined the motivations behind the strike. Central to their concerns is the alleged interference by the Secretary to the Ministry of Agriculture, whom the Association accuses of deliberately thwarting efforts to create an independent service structure for government veterinary surgeons.

Such a structure, they argue, is vital to ensuring career progression, equitable recognition, and operational autonomy within the public service.

Dr Kumara emphasised that this protest, while currently symbolic in nature, is a clear warning of escalating action if the authorities fail to address their concerns promptly.

He warned that services at state-run veterinary offices nationwide would be impacted, resulting in delays and interruptions to regular veterinary care and animal health initiatives.