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Coal Procurement Conducted in Full Compliance with Guidelines – Cabinet Spokesman

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Cabinet Spokesman and Minister Nalinda Jayatissa stated that the coal procurement process was carried out in full compliance with established procurement guidelines, rejecting allegations raised by opposition lawmakers.

Addressing the weekly post-Cabinet media briefing, the Minister said the current coal tender was conducted through a formal procurement process and received approval from the relevant authorities, including the Procurement Commission.

He noted that 26 registered suppliers had obtained bidding documents, of which 10 submitted bids. An initial period of 21 days was granted for submissions and later extended to 28 days, followed by a designated appeals period. No appeals were filed by unsuccessful bidders.

“If there had been irregularities, the companies that were not awarded the tender would normally have submitted appeals. No such appeals were received,” he said.

Jayatissa explained that under the procurement procedure, a load port inspection report from a recognized laboratory is obtained before shipment acceptance. Only consignments with a calorific value above 5,900 kilocalories per kilogram (kcal/kg) are accepted.

Upon arrival in Sri Lanka, a discharge port inspection report is conducted through an internationally recognized laboratory. He said Cotecna had been selected through a procurement process for a two-year period to carry out these inspections.

According to the Minister, penalties are imposed if shipments fail to meet the specified calorific standards. A double penalty is charged if the value falls below 5,900 kcal/kg, while a single penalty applies for consignments between 5,900 and 6,150 kcal/kg. Shipments exceeding 6,150 kcal/kg are accepted without penalty.

He said 10 vessels have arrived so far, with eight fully unloaded and the remaining currently being discharged. Inspection reports have been received for six shipments.

The first shipment, comprising 59,831 metric tonnes, was found to be below the required standard, resulting in a penalty of approximately US$ 2.07 million. Additional penalties were imposed on other shipments: US$ 436,000 for the second, US$ 484,929 for the third, US$ 345,652 for the fourth, approximately US$ 500,192 for the fifth, and US$ 510,677 for the sixth.

Jayatissa further stated that in previous years, there had been instances where shipments were accepted without proper verification of load port and discharge port reports. However, he said enhanced verification measures have been introduced this year, including authentication of the Indian load port laboratory for the first time.

He added that a committee comprising experts from the University of Moratuwa and officials from the Ministry will be appointed to examine technical issues in the inspection reports and assess any potential losses. Steps have already been taken by the Secretary to the Ministry of Power and Energy to appoint the committee.

The Minister maintained that the current coal procurement process has adhered to the established legal and regulatory framework.

Cabinet Approves Gazetting of Bill to Amend Social Security Contribution Levy Act

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The Cabinet of Ministers has approved the proposal to gazette a draft bill seeking to amend the Social Security Contribution Levy Act No. 25 of 2022.

In line with the 2026 Budget proposals, the Legal Draftsman has prepared the draft legislation to revise provisions of the existing Act.

The Attorney General has granted clearance for the draft bill.

Accordingly, the Cabinet approved the resolution submitted by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development to publish the draft bill in the Government Gazette and subsequently present it to Parliament for approval.

PUCSL to Hold Public Consultations on Proposed Electricity Tariff Hike

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The Public Utilities Commission of Sri Lanka (PUCSL) will conduct public consultation sessions from today (February 20) until March 18 regarding the proposal submitted by the Ceylon Electricity Board (CEB) to revise electricity tariffs for the second quarter of 2026.

According to the PUCSL, members of the public may submit comments and suggestions both verbally and in writing during this period. Consultation sessions are expected to be held across all nine provinces. Following the conclusion of the consultations, the Commission will make a decision on the proposed tariff revision after considering public submissions and other relevant factors.

The CEB submitted its proposal to the PUCSL on February 13, seeking a 13.56 percent increase in electricity tariffs for the second quarter of 2026, covering the period from April 1 to June 30.

Previously, the CEB had proposed an 11.57 percent tariff increase for the first quarter of 2026; however, that proposal was not approved by the PUCSL.

Written submissions can be sent to:

“Public Consultation on the Second Electricity Tariff Revision for 2026”
The Chairperson,
Public Utilities Commission of Sri Lanka,
6th Floor, BOC Merchant Tower,
28 St. Michael’s Road,
Colombo 03

Fax: 011 2392641
WhatsApp: 076 4271030
Email: [email protected]
Website: www.pucsl.gov.lk
Facebook: www.facebook.com/pucsl

In addition to written submissions, the Commission will conduct a series of public hearings where citizens may present oral feedback.

Public hearing schedule and registration contact numbers:

  • 07 March 2026 – District Secretariat Auditorium, Ampara – 077-0399119
  • 11 March 2026 – District Secretariat Auditorium, Vavuniya – 077-0399119
  • 12 March 2026 – Divisional Secretariat Auditorium, Matale – 071-4393018
  • 16 March 2026 – District Secretariat Auditorium, Hambantota – 071-4393018
  • 18 March 2026 – Bandaranaike Memorial Conference Hall, Colombo – 077-2943193

The PUCSL has requested all stakeholders and members of the public to participate in the consultation process to ensure transparency and inclusivity in the proposed electricity tariff revision.

WEATHER FORECAST FOR 25 FEBRUARY 2026

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Showers or thundershowers are likely at a few places in Southern province and in Rathnapura and Monaragala districts after 2.00 p.m.

Mainly fair weather will prevail over the other areas of the island.

Misty conditions can be expected at some places in Central, Sabaragamuwa, Western and North-western provinces and in Anuradhapura, Galle, Matara, Monaragala, Mannar and Vavuniya districts during the early hours of the morning.

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

From Thulhiriya to Overseas: Apparel Exodus Warning in Sri Lanka

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By: Staff Writer

February 24, Colombo (LNW): The shutdown of garment operations at the Methliya plant in Thulhiriya by MAS Holdings may represent more than corporate restructuring it could mark an early indicator of production migration driven by global tariff headwinds.

On 19 February, 2,200 employees were informed that garment manufacturing at the facility would cease, with the plant repurposed for fabric production. Management cited declining global demand and persistent market softness in the US, EU, and UK. However, analysts argue that trade policy uncertainty particularly evolving US tariff structures has compounded cost pressures for exporters.

For Sri Lanka, whose apparel exports heavily depend on Western markets, tariff fluctuations can decisively alter sourcing decisions. When buyers compare duty structures across suppliers in Vietnam, Bangladesh, and China, even marginal differences influence large-scale production shifts.

The Methliya plant’s strategic relocation of garment capacity to other MAS factories and offers for workers to transfer to overseas operations in Jordan highlight the growing mobility of apparel capital. Production can move where tariffs, logistics, and labour economics align more favourably.

MAS has pledged generous severance terms exceeding statutory requirements and assured regulatory compliance. Yet the broader economic narrative is less reassuring. Apparel exports generate critical foreign exchange needed for Sri Lanka’s debt servicing and import financing. Any sustained contraction in garment assembly could weaken dollar inflows and strain the balance of payments.

The company’s prior exits from Haiti and the Dominican Republic reflect an ongoing global rationalisation strategy. Such moves illustrate how multinational manufacturers continuously recalibrate footprints to mitigate geopolitical and tariff risks.

The pivot toward knitting, dyeing, and finishing operations at Methliya suggests a bid to enhance upstream value addition. Vertical integration may offer resilience, allowing Sri Lanka to supply fabrics even if final garment assembly shifts elsewhere. However, fabric production typically employs fewer workers than garment stitching, potentially reducing labour absorption capacity.

Economists warn that if US tariff barriers tighten or preferential access erodes, Sri Lanka’s apparel competitiveness could decline relative to regional peers with broader trade agreements. The result may be incremental factory downsizing or outward relocation.

For policymakers, the Methliya case becomes a cautionary study. Retaining apparel manufacturing requires not only productivity improvements but also strategic trade diplomacy and cost reforms in energy, logistics, and taxation.

MAS maintains that other facilities remain operational and stable. Yet the restructuring sends a clear signal: in a tariff-sensitive global industry, production flows toward certainty and cost advantage.

Japan’s $115 Billion Market Impact investors to stabilise Sri Lanka fragile economy

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By: Staff Writer

February 24, Colombo (LNW): While Sri Lanka courts foreign investors to stabilise its fragile economy, insights from Japan’s impact investment evolution highlight both opportunity and caution.

Speaking in Colombo, Masataka Uo of the Global Steering Group for Impact Investment emphasised that capital markets must evolve beyond profit maximisation. His call to activate the “invisible heart” alongside Adam Smith’s invisible hand reflects a broader ideological shift redefining investor responsibility.

Japan’s market expansion from $ 200 million in 2016 to $ 115 billion in 2024 signals investor appetite for purpose-driven assets. Yet this transformation unfolded against a backdrop of deep structural strain: an ageing society, escalating living costs, and mounting fiscal deficits. Facing limited government capacity to solve social challenges alone, Japan turned to private capital mobilisation.

For Sri Lanka, currently constrained by debt restructuring and fiscal consolidation, this model holds appeal. Traditional development financing is narrowing, and concessional funds come with policy conditions. Impact investing presents an alternative pathway blending financial returns with measurable social benefit.

But Japan’s experience also reveals systemic prerequisites. When GSG Impact Japan began in 2014, awareness of impact investing was minimal. Even ESG frameworks lacked traction. Progress required a decade of coordinated engagement among regulators, banks, institutional investors, and development agencies.

Legislative reform in 2017 unlocked dormant financial assets for social deployment. Collaboration with Japan’s Financial Services Agency created a structured study group of over 100 institutions, eventually formalised into an impact consortium. Additionally, regulatory revisions at Japan International Cooperation Agency facilitated greater private capital participation in overseas development initiatives.

The key takeaway for Sri Lanka is institutional alignment. Without credible measurement standards, transparent reporting frameworks, and policy incentives, impact capital risks remaining rhetorical rather than transformative.

Moreover, Uo warned that asset growth alone is insufficient. Despite rapid capital mobilisation, Japan has yet to see proportional social innovation in everyday life. This gap underscores the challenge of translating finance into grassroots change.

For Sri Lanka, impact investing could stimulate entrepreneurship, green infrastructure, and inclusive growth. Yet success depends on building trust among investors, regulators, and communities. Weak governance or inconsistent policy could deter long-term commitments.

Japan’s journey illustrates that impact investing thrives not merely on capital supply, but on ecosystem coherence. If Sri Lanka can synchronise government policy, financial institutions, and civil society engagement, it may harness impact finance as a strategic lever for recovery.

Otherwise, the promise of compassionate capitalism may remain aspirational rather than transformational.

Airport Terminal Tender Turmoil Rocks Sri Lanka’s Economy

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By: Staff Writer

February 24, Colombo (LNW): The long-delayed expansion of Bandaranaike International Airport (BIA) has once again drawn scrutiny as questions emerge over tender procedures, funding suspensions, and construction irregularities surrounding its proposed Terminal 2 project a development that carries significant economic consequences for Sri Lanka.

According to the Ministry of Ports and Civil Aviation, technical evaluations for the $564 million Terminal 2 project have now been completed and forwarded to Japan International Cooperation Agency (JICA), the primary financier. Deputy Minister Janitha Ruwan Kodithuwakku stated that the evaluation process should conclude by August following renewed negotiations with the Japanese lender.

Nevertheless beneath these assurances lies a troubling procurement history.

Originally awarded in 2020 to Taisei Corporation, the contract collapsed after Sri Lanka’s sovereign debt default triggered a freeze on JICA funding. Construction was abruptly halted, and the contractor subsequently terminated its agreement. The sudden stoppage not only delayed the project but also exposed weaknesses in financial risk planning and contractual safeguards.

Package A of the expansion the core multi-level terminal structure was initially estimated at Rs. 133 billion. Funding agreements signed in 2012 and 2016 between Airport and Aviation Services (Sri Lanka) Ltd. and JICA amounted to ¥74.4 billion in total. However, critics argue that project cost escalations, specification revisions, and the need to reissue tenders signal deeper procurement inefficiencies.

With two Japanese contractors now bidding after fresh tenders were called, analysts question whether the process sufficiently addressed transparency gaps exposed during the previous award. The re-preparation of specifications and restarting of negotiations raise concerns about consistency in evaluation criteria and whether prior contractual liabilities were fully resolved.

The economic stakes are substantial. BIA operates as Sri Lanka’s primary aviation gateway, and the long-stalled expansion has constrained passenger handling capacity at a time when tourism recovery is critical. Delays undermine investor confidence and increase project costs through inflation, exchange rate depreciation, and remobilisation expenses.

Furthermore, reliance on foreign loan financing amid a fragile debt restructuring process amplifies fiscal risk. Any misstep in procurement or compliance could jeopardise renewed funding flows, potentially increasing the Government’s borrowing burden.

While authorities insist the process is on track, governance advocates call for independent oversight of the tender evaluation and publication of technical scoring results to restore public confidence. Without enhanced transparency, Terminal 2 risks becoming another example of infrastructure mismanagement during Sri Lanka’s economic crisis.

As construction timelines stretch to an estimated 30 months once awarded, the true cost of delay may extend beyond dollars affecting tourism competitiveness, trade logistics, and broader macroeconomic recovery.

The Terminal 2 project was conceived as a gateway to growth. Instead, its turbulent procurement journey underscores the urgent need for institutional reform in large-scale public infrastructure management.

A Miracle of Medicine and Motherhood: “Hugo” Born from a Womb Transplanted from a Deceased Donor

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By: Puli

February 24, LNW (Colombo): A remarkable moment linking medical science and motherhood has captured global attention – baby Hugo Bell was born using a womb transplanted from a deceased donor, marking a historic first in the United Kingdom. The birth is being celebrated as both a scientific breakthrough and a deeply emotional triumph, offering fresh hope to women worldwide who cannot become pregnant due to uterine conditions.

His mother, Grace Bell, now in her 30s, was born without a functional womb. She describes her 10-week-old son Hugo as a miracle. Grace and her partner, Steve Powell, expressed heartfelt gratitude to the donor and her family for their kindness and selflessness, while also thanking the medical teams in Oxford and London whose expertise made the birth possible.

Surgeons involved in the case called the delivery a “landmark moment,” saying it could bring new hope to many women with similar diagnoses. Hugo was born shortly before Christmas 2025 at Queen Charlotte’s and Chelsea Hospital in West London, weighing nearly 7 pounds.

Grace was born without a uterus and never experienced menstruation, although her ovaries functioned normally. Her condition is known as Mayer-Rokitansky-Kuster-Hauser syndrome (MRKH), which affects about one in every 5,000 women in the UK. At the age of 16, she was told she would likely never be able to carry her own child, leaving uterus transplantation or surrogacy as the only possible paths to parenthood.

Grace recalled feeling shocked yet overwhelmingly excited when she received the phone call informing her that a donor uterus was available and that a transplant could go ahead. That moment ultimately led to Hugo’s birth – a journey filled with resilience, medical innovation, and hope.

Beyond the headlines, Hugo’s story carries a powerful message: advances in medicine, combined with courage and compassion, can open doors once thought permanently closed. For many families, this extraordinary birth is proof that even the most unlikely dreams can one day become reality.

End of El Mencho: Mexico’s Most Wanted Cartel Chief Killed in Military Raid

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By: Isuru Parakrama

February 24, World (LNW): The death of Nemesio Oseguera Cervantes — better known as “El Mencho” — marks a watershed moment in Mexico’s long and bloody struggle against organised crime. The feared leader of the Jalisco New Generation Cartel (CJNG) was killed on February 22, 2026 during a Mexican military operation in the western state of Jalisco, marking a close to a manhunt that had spanned more than a decade.

For years, El Mencho stood amongst the most wanted men in the world. Both Mexican and United States authorities had placed multimillion-dollar bounties on his head, accusing him of overseeing a vast criminal empire responsible for trafficking cocaine, methamphetamine and fentanyl across several continents. His organisation grew into one of the most powerful and violent drug cartels operating in the Americas.

From Rural Poverty to Criminal Power

Born on July 17, 1966 in rural Michoacán, Oseguera Cervantes emerged from stark poverty. He reportedly left school early to labour in avocado fields and guard marijuana plantations. In the 1980s, he illegally entered the United States, where he was arrested multiple times on drug-related charges before being deported to Mexico in the early 1990s following a five-year prison sentence.

Back in his homeland, he joined the Milenio Cartel and forged alliances that would later prove decisive. After internal fractures within Mexico’s criminal underworld around 2010, he founded the CJNG, transforming it from a regional faction into a global trafficking powerhouse.

The cartel rapidly expanded its footprint across key Mexican states including Jalisco, Colima and Guanajuato, while establishing supply and distribution networks stretching into the United States, Europe, Asia and Africa.


A Reign Defined by Violence

El Mencho’s ascent was defined by ruthless violence and strategic intimidation. Under his command, the CJNG adopted paramilitary tactics rarely seen even in Mexico’s cartel wars. In 2015, cartel gunmen shot down a Mexican military helicopter, killing nine soldiers — a brazen act that shocked the nation.

Ambushes on police patrols, mass killings and coordinated “narco-blockades” — in which vehicles were hijacked and set ablaze to paralyse cities — became hallmarks of the organisation’s operations.

While no precise figure exists for the number of killings directly attributable to Oseguera Cervantes, the cartel he led has been linked to thousands of deaths in turf wars and retaliatory attacks. United States authorities alleged that CJNG played a significant role in fuelling the fentanyl crisis north of the border. Estimates placed El Mencho’s personal fortune between $500 million and $1 billion, while the cartel’s broader assets were believed to run into tens of billions.


The Final Raid

His downfall came in Tapalpa, a mountainous area within Jalisco considered part of CJNG’s heartland. Acting on intelligence reportedly assisted by US agencies, Mexican Army forces launched a raid that triggered a fierce firefight. El Mencho was wounded during the clash; four of his gunmen were killed at the scene, with others captured. He died while being transported to Mexico City. Three soldiers were injured in the operation.


Retaliation and Nationwide Unrest

Yet his death did not bring immediate calm. Within hours, the CJNG unleashed a wave of retaliatory violence across more than 20 Mexican states. Buses, lorries and private vehicles were hijacked and torched to create fiery roadblocks. Gas stations and businesses were attacked, and gun battles erupted in several regions. Early reports indicate that between 62 and 73 people were killed in the unrest, including at least 25 members of the National Guard.

Authorities responded by deploying thousands of troops and arresting scores of suspects. Schools were temporarily closed in affected areas, and public transport was suspended. The United States issued shelter-in-place warnings for its citizens in several Mexican states.

A Vehicle that was set on fire in Cointzio, Mexico, Sunday, Feb. 22, 2026, amid reports the Mexican Army killed Jalisco New Generation Cartel leader Nemesio Oseguera, known as “El Mencho.” (AP Photo / Armando Solis)

A Power Vacuum and Uncertain Future

The immediate question now facing Mexico is who, if anyone, will succeed him. His son, known as “El Menchito”, is imprisoned in the United States, and no clear heir has publicly emerged. Analysts suggest the CJNG may fragment along regional lines, triggering internal power struggles among senior commanders.

History suggests that the removal of a cartel leader can produce as much instability as it resolves. Mexico’s homicide rate has hovered near 30,000 annually in recent years, and security experts fear the power vacuum could intensify turf wars, extortion rackets and kidnappings.

For many Mexicans, however, the killing of El Mencho represents a symbolic victory — the fall of a man who embodied the brutality and impunity of modern cartel power. Whether it marks a genuine turning point or merely the beginning of another violent chapter remains to be seen.

Death of cartel boss El Mencho triggers violence across Mexico (Photo – Euro News)

Toxic Ash and Soaring Losses at Lakvijaya Power Plant Rock Energy Sector

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By: Staff Writer

February 24, Colombo (LNW): Sri Lanka’s power sector is confronting an escalating financial and environmental emergency as inferior coal supplies undermine performance at the Lakvijaya Power Plant, the country’s largest thermal power station.

Recent laboratory findings indicating ash content as high as 21 percent well above the contractual ceiling have intensified scrutiny over procurement oversight. Engineers confirm that the lower calorific value of the coal has significantly reduced generation efficiency, cutting daily output by nearly 100 megawatts.

The economic repercussions are immediate. The Ceylon Electricity Board is reportedly losing around Rs. 75 million per day due to diminished plant efficiency and the necessity of procuring supplementary thermal power at premium rates. Over a year, such losses could approach Rs. 100 billion funds that would otherwise support grid upgrades, renewable expansion, or debt stabilization.

Energy specialists note that substandard coal not only generates less electricity but accelerates equipment wear, increases unplanned shutdowns, and raises maintenance expenditure. In effect, consumers and taxpayers absorb the compounded cost of technical inefficiency and fuel mismanagement.

Environmental consequences are equally severe.

Coal ash volumes have surged, straining storage capacity. Each tonne of excess ash heightens the risk of airborne contamination and groundwater seepage. Fly ash particles, rich in mercury, arsenic, lead and cadmium, can infiltrate food chains if not securely contained.

Environmental advocates warn that open ash pits and inadequate lining systems leave nearby communities vulnerable to toxic exposure. During dry conditions, wind-blown ash contributes to respiratory distress and chronic health concerns.

Marine impacts compound the crisis. Thermal discharge from the plant continues to elevate surrounding seawater temperatures, stressing coral ecosystems and marine biodiversity. Increased coal combustion also elevates fine particulate emissions, degrading air quality far beyond the plant’s immediate vicinity.

Economists argue that environmental damage carries its own hidden ledger healthcare costs, fisheries decline, agricultural impact, and remediation expenses. When these externalities are factored in, the true cost of inefficient coal procurement far exceeds the visible Rs. 75 million daily loss.

The unfolding situation underscores a critical policy dilemma: reliance on coal without rigorous quality enforcement and waste governance multiplies both fiscal and ecological risk. Energy reform advocates are pressing for transparent fuel audits, strict compliance monitoring, and accelerated investment in renewables to reduce exposure to volatile and environmentally hazardous imports.

As financial losses mount and ash accumulates, Norochcholai stands as a stark reminder that energy security cannot be separated from economic prudence and environmental stewardship