By: Staff Writer

December 24, Colombo (LNW): Sri Lanka’s Ceylon Electricity Board (CEB) and its subsidiary, Lanka Electricity Company (LECO), have secured a $230 million loan from the Asian Development Bank (ADB) to enhance renewable energy integration and modernize the nation’s electricity grid.

The project, backed by Treasury guarantees, aims to build a climate-resilient energy infrastructure while addressing challenges posed by intermittent renewable energy sources.

Key Loan Details

The ADB’s $200 million loan under the Power System Strengthening and Renewable Energy Integration Project will focus on improving the reliability of Sri Lanka’s power system. Of this, $150 million is allocated to CEB, and $50 million to LECO.

A further $30 million will be provided in two tranches to support the Moragolla Hydropower Project and other renewable energy initiatives. These agreements, signed on December 19, 2024, involve Sri Lanka’s Ministry of Finance and ADB representatives.

Infrastructure Upgrades and Renewable Integration

The loan will fund the construction of six new grid substations, 132 kV and 220 kV transmission lines, and the augmentation of existing substations. These upgrades align with CEB’s long-term transmission plan for 2025–2027.

To further modernize the grid, Sri Lanka will install its first grid-scale battery energy storage system, a renewable energy center, and advanced automation systems, including SCADA and remote monitoring.

The project also addresses the volatility of renewable energy sources by building a robust grid capable of managing fluctuations.

With over 3,400 km of high-voltage lines and 90 substations already in place, these new investments will reduce transmission losses, minimize power interruptions, and support the government’s goals of achieving 70% renewable electricity generation by 2030 and carbon neutrality by 2050.

Sector Reforms and Economic Impact

ADB’s support for Sri Lanka’s power sector includes reforms to ensure cost-recovery pricing and competitive procurement of renewable energy.

This initiative is vital for transitioning from thermal power, which accounted for 50% of the nation’s electricity in 2023.

The project also aims to reduce power generation costs and improve energy efficiency, directly benefiting Sri Lanka’s 7.5 million electricity consumers.

Social and Gender Inclusion

The project includes programs to enhance institutional capacity, with a focus on digital solutions and renewable energy management. ADB has emphasized career development for female employees, safe electricity practices, and clean energy adoption for women-led businesses. These initiatives are integral to fostering inclusive growth and empowering women in Sri Lanka’s energy sector.

Pathway to Sustainability

Sri Lanka has made significant strides, achieving 100% household electrification by 2016. However, transitioning to renewable energy remains a priority to reduce reliance on fossil fuels and meet climate targets.

The ADB-backed project marks a critical step toward financial sustainability and competitive renewable energy development, reflecting broader goals for a resilient and sustainable Asia-Pacific.

This financing underscores ADB’s commitment to eradicating poverty and promoting long-term economic stability through sustainable infrastructure investments.

By: Staff Writer

December 24, Colombo (LNW): Sri Lanka’s Browns Investments PLC has significantly expanded its global presence in the tea industry by acquiring Lipton’s operations in Africa.

The acquisition, finalized on December 20, 2024, through its fully owned subsidiary, B Commodities ME FZE, based in the UAE, involved the purchase of 100% shares in Lipton Teas and Infusions Tanzania Limited.

This move marks a key milestone in Browns’ strategy to strengthen its position in the global tea market.

The acquisition was initially delayed due to the pending approval from Tanzania’s Fair Competition Commission but was successfully completed by the end of 2024.

Browns had previously signed an agreement in May 2024 with Ekaterra Holdco UK Limited, along with Netherlands-based entities Ekaterra Group Holdings BV and Ekaterra Group Holdings 2 BV, to acquire Lipton’s African operations.

By the end of the year, Browns had secured Lipton’s tea businesses in Kenya, Rwanda, and Tanzania. These operations collectively produce around 87 million kilograms of tea annually, making Browns one of the world’s largest tea producers and a key supplier to Lipton Teas and Infusions.

This acquisition is part of a broader strategic partnership with Lipton Teas and Infusions, a newly formed entity following Unilever’s sale of the majority of its global tea business to CVC Capital Partners in July 2022. Lipton Teas and Infusions now manages the iconic Lipton brand and oversees its global operations, focusing on sustainable practices and growth.

Browns Investments is committed to enhancing the global tea industry by implementing responsible farming practices and adhering to stringent quality standards. By 2025, all tea produced under this partnership will meet enhanced standards that emphasize quality, environmental sustainability, and social responsibility.

This commitment highlights Browns’ dedication to ethical production practices and environmental stewardship.

A key component of this partnership is its focus on community development. To support local communities connected to the tea estates, a Community Welfare Trust has been established with an initial fund of one billion Kenyan shillings.

Additionally, 15% of shares in Browns’ primary Kenyan operating company will be offered to local communities in Kericho and Bomet at a discounted rate, fostering greater economic equity and participation.

The history of the Lipton brand dates back to the late 19th century when Scottish entrepreneur Sir Thomas Lipton revolutionized the tea industry by acquiring tea estates in Ceylon (now Sri Lanka) and selling tea directly to consumers, eliminating middlemen.

His innovative approach, including the slogan “Direct from the garden to the teapot,” helped make Lipton a household name. Among his notable ventures was the establishment of the Dambatenne Tea Factory in 1890, which remains operational today and symbolizes Lipton’s deep-rooted connection to Sri Lanka.

In the decades following its founding, Lipton underwent significant changes. In 1929, Lipton merged with other companies to form Allied Suppliers, which was later acquired by Unilever in 1972.

Under Unilever, Lipton grew into one of the world’s leading tea brands. However, in 2021, Unilever announced it would sell the majority of its tea business to CVC Capital Partners, resulting in the creation of Lipton Teas and Infusions in July 2022. This new entity continues to manage the Lipton brand in most global markets.

Sri Lanka remains an important part of Lipton’s legacy, despite no longer owning plantations in the country. The Dambatenne Tea Factory and Lipton’s Seat near Haputale serve as popular tourist destinations, offering insights into the brand’s history and its significant role in Sri Lanka’s tea industry.

Today, Lipton Teas and Infusions is a leading player in the global tea market, offering a diverse range of products across retail, food service, and online platforms. The brand continues to prioritize sustainability, innovation, and community engagement, ensuring its ongoing relevance in the global marketplace.

As Browns Investments takes charge of Lipton’s African operations, the partnership sets a new standard for sustainable tea production and community development. By combining Browns’ strategic vision with Lipton’s established global reputation, this collaboration is poised to shape the future of the tea industry while honoring its rich heritage.

December 24, Colombo (LNW): The Ministry of Finance, Planning and Economic Development has issued a new circular outlining the framework for the payment of bonuses to employees of State Corporations, Statutory Boards, and State-Owned Enterprises for the year 2024.

The circular, released on the 23rd of December by Treasury Secretary Mahinda Siriwardena, has been circulated to all Ministry Secretaries and the Chairpersons of the respective institutions, providing clear guidance on how the bonuses should be managed.

The document sets out the criteria for the bonus allocation, stating that employees working for institutions which contributed at least 30% of their profits after tax to the Consolidated Fund in 2023—either as dividends or levies—will be eligible for a bonus.

The bonus amounts are tiered, with eligible employees set to receive either Rs. 25,000 or Rs. 20,000, depending on the institution’s financial performance.

In addition to the bonus amounts, the circular also provides detailed instructions on how the bonuses should be processed.

However, it is important to note that the Treasury has clarified that it will not be providing direct funding for these bonus payments.

Instead, institutions will need to cover the cost from their own financial resources.

Furthermore, the circular specifies that in cases where there are complications or disagreements concerning the payment of bonuses, approval must be sought from the Cabinet before proceeding with any disbursements.

This step ensures that the process remains in line with governmental oversight and budgetary constraints.

This directive highlights the government’s continued efforts to incentivise performance in the public sector, linking bonus payments to financial contributions to the national fund while maintaining control over public expenditure.

The move is expected to provide clarity for both state employees and the institutions involved as they prepare to implement the bonus scheme for the coming year.