News

Debt debate in the balance

Published

1 year ago

2024/07/8

Thilina Walpola

SJB alleges vital documents not accessible

By Shamindra Ferdinando

Deputy Speaker Ajith Rajapaksa yesterday (07) said that a debate on the implementation of external debt restructuring agreements could be held if a fresh request was made to that effect.Rajapaksa said so when The Island asked him whether the hotly disputed external debt restructuring agreements would be debated soon. A vote on a resolution related to debt restructuring was to take place on July 03 following a two-day debate.

Deputy Speaker Rajapaksa said that the vote on a fresh resolution followed by debate would entirely depend on a consensus reached at the Committee on Parliamentary Business. However, the issue hadn’t been taken up yet.

President Ranil Wickremesinghe, in his capacity as the Finance Minister delivered his scheduled special statement in Parliament on July 02 claiming credit for paving the way for debt sustainability.

The Deputy Speaker said the debate scheduled for July 02 and 03 had been cancelled because the disclosure of certain details of agreements finalised with the Official Creditor Committee (OCC) and Export Import Bank of China on June 26 would be detrimental to Sri Lanka’s interests in discussions with international sovereign bondholders.

The Deputy Speaker said that now that the three levels of debt restructuring process had been completed the Parliament could debate and vote on a related resolution without hindrance.

State Finance Minister Shehan Semasinghe said that ISBs (International Sovereign Bonds) accounted for USD 12.5 billion out of the total external debt of USD 37 billion. Therefore, the agreement with sovereign bondholders is a crucial step in government efforts to restore debt sustainability, he said.

The Committee on Parliamentary Business, which met on July 03 decided that the Parliament would meet from July 09 to 12. However, according to a statement issued by Parliament, the debate on the implementation of external debt restructuring agreements hadn’t been at least taken up.

Sources pointed out that SLPPer Shehan Semasinghe, in his capacity as the State Finance Minister, had been involved in the overall process and an influential section of the government parliamentary group, including Chief Government Whip Prasanna Ranatunga and Leader of the House Susil Premjayantha, declared their support for the debt restructuring process publicly.

Top Opposition spokesman Prof. G. L. Peiris yesterday told The Island though no dates had been requested for a fresh debate yet, the issue at hand would be considered at the next Parliamentary Business Committee. The former External Affairs Minister said that documents relating to all three agreements were yet to be made available to MPs.

State Minister Semasinghe recently told us that the Opposition sought political advantage at the expense of successful completion of the debt restructuring process. The bottom line is the Opposition and some other interested parties couldn’t stomach the success achieved by the government, Minister Semasinghe said, urging the public to be wary of the destructive strategies pursued by some elements, both in and outside parliament.

The Anuradhapura District lawmaker emphasized whatever various interested parties said the SLPP solidly backed President Wickremesinghe’s debt restructuring strategy as well as other policy measures in Parliament.

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Navy seize an Indian fishing boat poaching in northern waters

Published

4 hours ago

2026/01/3

Priyan

During an operation conducted in the dark hours of 01 Jan 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 11 Indian fishermen while they were poaching in Sri Lankan waters, off Kovilan of Kareinagar, Jaffna.

The Northern Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the Northern Naval Command were deployed to drive away those Indian fishing boats from island waters off Kovilan.

Meanwhile, compliant boarding made by naval personnel resulted in the seizure of one Indian fishing boat and apprehension of 11 Indian fishermen who continued to engage in illegal fishing in Sri Lankan waters.

The seized boat (01) and Indian fishermen (11) were handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.

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Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund

Published

10 hours ago

2026/01/3

Priyan

Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.

Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.

The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.

The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.

Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.

News

CEB demands 11.57 percent power tariff hike in first quarter

Published

12 hours ago

2026/01/3

Thilina Walpola

The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.

According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.

Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.

The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.

In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.

The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.

The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.

Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.

By Sujeewa Thathsara ✍️