News
Replacing a state monopoly with a private sector oligopoly
Proposed Sri Lanka Electricity Bill
By Rathindra Kuruwita
If the Sri Lanka Electricity Bill, currently under consideration in Parliament, is enacted, it could empower a handful of private companies, owning transmission lines, to exert undue control over the nation, potentially holding it hostage, the Education Secretary of the Frontline Socialist Party (FSP), Pubudu Jayagoda said.
The Bill, if passed, will replace Ceylon Electricity Board Act (No. 17 of 1969) and Sri Lanka Electricity Act (No. 20 of 2009).
One of the stated objectives of the Act is to attract new investment into the Electricity Industry, supported by segregation and separation of the activities of the Electricity Industry, currently vested in a single Government owned entity, by the incorporation of independent corporate entities in whom shall be vested all activities connected with the generation, transmission, distribution, trade, supply and procurement of electricity and who shall be responsible for the efficient management of these activities and for the creation of market competition, he said.
The other objectives are to facilitate private sector investment in every activity of the Electricity Industry using stock market listing and public private partnership modalities and transition and reorganisation of the Electricity Industry and the implementation of identified reforms based on timely and essential legal, structural, oversight and market-based changes.
Jayagoda remarked that essentially, the government has shifted its stance from viewing electricity as a public good, which it has a duty to furnish, to subjecting the sector to market forces. He noted that with the enactment of the Act, the government relinquishes its responsibility to provide electricity to households for improving their quality of life or to enterprises to stimulate economic endeavours.
“In the recent past, the electricity tariff increased dramatically. Electricity was disconnected in almost a million households and in 11,000 industries,” he said.
Jayagoda pointed out that the tariff adjustments were implemented with the aim of enabling the CEB to achieve a profit of approximately 62 billion rupees. However, according to some experts, the CEB actually recorded a profit of about 90 billion rupees.
“We cautioned that these adjustments were not solely aimed at covering CEB expenses, as claimed by the government, but rather to generate substantial profits. Now, it’s evident to everyone that our concerns were valid,” he remarked.
Jayagoda said according to laws that govern the electricity sector states that the baseload, apart from peak hours, must be generated using the least cost sources.
“Hydro power is the source that we can use to generate electricity at the lowest cost. One can generate a unit of electricity, using hydro-power, under five rupees at most. But the cost spikes to about 40-50 rupees when a unit is generated by coal. A unit of electricity, generated by diesel, costs about 90 rupees, and the CEB buys at around 120 rupees when they purchase from private power plants,” he said.
Thus, it is obvious that the raison d’etre of this Bill is to legalize increased electricity tariffs, he said. The existing laws that govern the sector frowns upon high-cost private thermal power plants, Jayagoda added.
Jayagoda stated that this Bill eliminates these barriers and grants the Cabinet of Ministers the authority to decide on the type of power plants to be constructed. Currently, it is the responsibility of the CEB to determine the selection of power plants.
“The government wants to allow private companies to produce, distribute, and transmit electricity. Giving transmission lines to the private companies poses serious problems. Already, India’s Adani is building a 400 kv transmission line from Kilinochchi to Habarana. Adani got this without a tender. When we ask the Ministry of Power and Energy, they claim this is a government to government project and this there was no need to call for tenders. However, it is a private Indian company that is building the transmission line and thus tenders should have been called,” he said.
Jayagoda questioned the potential scenario where the government seeks to transmit electricity generated by another company through this line. He inquired about the financial implications for the other company, asking how much they would need to pay Adani for the usage of the transmission line.
“What will be the fee for access? And what if Adani refuses to permit electricity generated by other companies to pass through their transmission lines?” Jayagoda questioned. “While the government claims the Bill aims to enhance competition in the sector, in reality, it could result in the formation of an oligopoly controlled by a handful of companies that own transmission infrastructure.”
Jayagoda highlighted that the new Bill has diminished the authority of the Public Utilities Commission (PUC). In Sri Lanka, long-term generation plans are periodically devised, and tariff revisions are conducted. Currently, the PUC is responsible for overseeing the implementation of these long-term plans and determining the extent of tariff revisions.
“The new Bill effectively strips the PUC of its authority in these areas. Additionally, it grants the line minister the discretion to determine tariffs and oversee the implementation of long-term generation plans. Furthermore, the Bill restricts the PUC’s regulatory scope to large-scale power plants, excluding its jurisdiction over small power plants (11 and 33 kV plants). Ensuring that these power plants adhere to specific quality standards is crucial for safeguarding life and property. What are the potential consequences when private entities establish small power plants and generate electricity without any regulatory oversight?” Jayagoda questioned.
Jayagoda pointed out that the new Bill introduces a provision allowing Sri Lanka’s national grid to be connected to the grid of a foreign power, a clause absent in previous legislation. He emphasized that due to its geographical location, Sri Lanka can only feasibly be linked to the Indian national grid.
“Even more concerning is the provision in the Bill stating that it’s the Cabinet of Ministers who will determine the terms of any agreement if our grid is linked to another country’s national grid. This decision-making process has been heavily politicised,” Jayagoda said.
“What if India imposes similar conditions on us as they did on Nepal and Bhutan? In agreements with those countries, India mandated that they purchase a specified volume of electricity from India. As a result, Nepal is now compelled to buy Indian electricity at a higher cost, despite having the capacity to generate inexpensive hydro power. This fate could very well be awaiting us.”
News
Prison mayhem leaves at least 26 dead; five officers killed in revenge violence
At least 26 people, including five prison officers and 20 inmates, have been confirmed dead following violent unrest at Negombo Prison, hospital sources said yesterday, as authorities struggled to restore full control over the facility.
According to unconfirmed reports the prison officers were killed by rioters yesterday morning, in retaliation, and weapons carried by those officers were grabbed by them.
Negombo General Hospital Director Consultant Dr. Pushpa Gamlath said nearly 100 injured persons had been admitted, following the clashes, and eight of the critically wounded had been transferred to the National Hospital, in Colombo, for further treatment.
The violence, which initially broke out on Sunday (5) between remand prisoners and convicted inmates, left two inmates dead and 38 others injured before being temporarily brought under control.
However, tensions flared again on Monday (6), with prison officials reporting renewed unrest inside the facility despite earlier assurances that the situation had stabilised.
Police said the initial confrontation was triggered by a dispute linked to the exposure of an alleged drug trafficking network, operating within the prison, and was reportedly orchestrated by a drug trafficker, identified as Suresh, who is said to have links to an underworld figure known as ‘Booru Moona’.
The violence rapidly escalated, with female inmates staging a protest on the Prison roof in support of those involved in the clashes, while relatives gathered outside demanding information on detainees. Police later facilitated visits for selected family members to hospitalised inmates.
The Negombo Prison, which houses around 1,800 remand and convicted inmates, descended into widespread disorder as rival groups clashed, with reports indicating that the violence later spread beyond the initial confrontation.
Authorities said rioting inmates had allegedly seized firearms during the renewed unrest on Monday, prompting heightened security measures.
The Sri Lanka Air Force deployed drones for aerial surveillance and a Bell 412 helicopter to monitor the situation, while additional military personnel were sent to reinforce security around the prison.
Prisons Department spokesperson A.C. Gajanayake said a special investigation team had been appointed, under the direction of the Commissioner General of Prisons, to probe the incident, while a separate police investigation is also underway.
Justice Minister Harshana Nanayakkara told The Island that he had called for a detailed report on the disturbances.
By Norman Palihawadane
News
Cleaner, cheaper electricity gathers momentum with rapid progress in 50 MW Mannar wind power project
Sri Lanka’s drive towards cleaner and cheaper electricity gathered fresh momentum with the reported rapid progress in the 50 MW Mannar Wind Power Project, which is expected to produce the lowest-cost wind-generated electricity in the country’s history while saving billions of rupees in annual fuel imports.
The Ministry of Energy announced that the first wind turbine for the project had already arrived in the country, while the remaining turbine components have reached the Port of Trincomalee and are currently being unloaded, signalling a major milestone in the construction of one of the country’s key renewable energy ventures.
The project, inaugurated by President Anura Kumara Dissanayake, in January this year, is expected to become a cornerstone of the government’s strategy to transform Sri Lanka’s electricity sector by expanding renewable energy generation and reducing dependence on imported fossil fuels.
According to the Ministry, electricity generated by the Mannar wind farm will be purchased at USD 0.0465 (approximately Rs. 14.37) per unit, making it the lowest tariff ever secured for wind-generated electricity in Sri Lanka.
Energy experts say the competitive tariff demonstrates the growing economic viability of renewable energy and could help stabilise future electricity prices.
The Ministry also estimates that once the wind farm is connected to the national grid, Sri Lanka will save approximately Rs. 4.7 billion annually by reducing the import of fossil fuels required for thermal power generation, easing pressure on the country’s foreign exchange reserves.
The Mannar project is expected to support the government’s ambition of substantially increasing the contribution of renewable energy to the national electricity mix, by 2030, while helping Sri Lanka move towards its long-term goal of achieving net-zero carbon emissions by 2050.
Hayleys Fentons PLC, selected through an international competitive bidding process, is responsible for the installation and maintenance of the wind turbines.
The National System Operator (NSO), operating under the Ministry of Energy, will oversee the integration and management of electricity generated by the project within the national grid.
By Ifham Nizam
News
Tech-enabled trafficking, fake foreign jobs pose growing threat, MPs told
Human trafficking has become increasingly sophisticated, with deceptive overseas employment offers, fraudulent recruitment practices and technology-enabled recruitment emerging as major threats that require a coordinated national response, Members of Parliament were told at a special awareness programme held in the House recently.
Addressing the programme, Secretary to the Ministry of Defence and Chairman of the National Anti-Human Trafficking Task Force, retired Air Vice Marshal Sampath Thuyacontha, said trafficking in persons had evolved significantly over the years and was now closely linked to organised transnational criminal networks.
He warned that fake foreign employment opportunities, fraudulent recruitment agencies, online recruitment platforms, forced labour, sexual exploitation and, in some instances, the use of victims for forced criminal activities had become key challenges confronting authorities.
The awareness programme organised jointly by the National Anti-Human Trafficking Task Force of the Ministry of Defence and Parliament, was aimed at strengthening legislators’ understanding of emerging trafficking trends, the legal and policy framework governing the issue, and the role of Parliament in strengthening anti-trafficking legislation.
MPs were also briefed on the National Strategic Action Plan on Combating Human Trafficking (2026-2030), which focuses on preventing trafficking, identifying and protecting victims, strengthening the criminal justice response and improving coordination among State institutions.
Special emphasis was placed on the growing use of digital platforms for recruitment, deceptive migration practices, labour exploitation and the coercion of victims into criminal activities.
The programme featured presentations by Additional Solicitor General Haripriya Jayasundara, PC, and State Counsel Sajith Bandara of the Attorney General’s Department.
The event, held under the patronage of Deputy Chairperson of Committees Hemali Weerasekara, was attended by Opposition Leader Sajith Premadasa, Public Security and Parliamentary Affairs Minister Ananda Wijepala, Deputy Defence Minister retired Major General Aruna Jayasekara, Members of Parliament and senior officials of the Ministry of Defence, the National Anti-Human Trafficking Task Force and Parliament.
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