Business
JAAF lauds PUCSL reduction in electricity tariffs & calls for continued energy policy reforms
The Joint Apparel Association Forum (JAAF) welcomed the recent decision by the Public Utilities Commission of Sri Lanka (PUCSL) to implement a 25.3% reduction in industrial electricity tariffs, parallel to a 27% reduction for domestic customers and a 22.5% overall reduction effective from July 16, 2024.
A press release said: ‘In addition to easing the burden on retail customers, JAAF commended the PUCSL decision for providing much-needed relief to Sri Lanka’s apparel and export industries, enhancing competitiveness and supporting economic recovery.
‘The PUCSL decision was taken in the light of the submission made by the CEB which had the industrial tariff unchanged, and post the public consultation held last week where JAAF made a submission that, Sri Lanka’s apparel exporters were forced to contend with one of the highest electricity tariffs among its competitors. However, following reduction approved by the PUCSL, Sri Lankan manufacturers will now benefit from a tariff rate that is much more competitive.
‘Sri Lanka’s apparel industry, which contributes nearly half of the nation’s export earnings, has faced severe challenges due to high electricity costs. In 2022, tariffs soared from Rs. 6.58/kWh to Rs. 34/kWh, contributing to a decline in apparel export revenue from $5,591.5 million to $4,535.5 million. The recent tariff reductions will alleviate some of these financial pressures, allowing the industry to stabilize and regain its competitive edge.
“We commend the PUCSL for recognizing the significant challenges faced by the apparel sector and taking decisive steps to reduce industrial electricity tariffs as well as tariffs for SMEs and minor industries, all of which were struggling with the higher rates. This decision is a welcome step in the right direction that will prove crucial for maintaining the competitiveness of Sri Lankan exports, and supporting a broad-based, export-led economic recovery.”
“We remain committed to working closely with PUCSL, CEB, and other stakeholders to promote policies that support the apparel industry and the broader economy. By continuing to address systemic issues in energy policy and advocating for fair and sustainable practices, JAAF aims to ensure that Sri Lanka’s apparel sector remains competitive on the global stage,” JAAF Secretary General, Yohan Lawrence said.
‘Another key point in JAAF’s submissions to the PUCSL was its call for the urgent implementation of a rigorous least-cost generation plan utilizing transparent competitive bidding processes for power purchase agreements. In particular, JAAF called on policy makers to ensure that the country’s natural resources, such as wind and solar, were effectively leveraged at the lowest cost to support a sustainable transition to renewable energy.
‘In its submissions, JAAF further noted that consistent and wide overestimation in the tariff forecasting for cost recovery submitted by the Ceylon Electricity Board (CEB) has also driven retail and industrial tariffs unnecessarily higher. In addition to placing a direct and undue burden on average citizens of Sri Lanka, JAAF noted that these major inaccuracies in the tariff forecasting model had eroded the competitiveness of Sri Lanka’s apparel exports.
“Accuracy in the tariff forecasting model is an absolute must. While we are deeply grateful for the decision to reduce tariffs, we must also reiterate that the tariff increase in October 2023 was based on inaccurate forecasting and resulted in the CEB making substantial profits of 61 billion in Q3 2023 and 58 billion in Q1 2024. While such significant profits eventually created clear space for a tariff reduction, it is fairer for all customers when tariffs are based on accurate forecasting at the outset,” Lawrence stated.
‘JAAF also reiterated support for policies aimed at scaling up renewable energy to supply 70% of the national grid by 2030, noting that such a transition remains vital for meeting the demand of global brands for decarbonization while ensuring sustainable energy pricing.’
Business
USD 57.4m power investment opens new route for SME energy savings
By Ifham Nizam
A USD 57.4 million investment package is set to reshape the economics of electricity for small and medium-sized businesses, while creating a stronger platform for private investment in rooftop solar and other distributed renewable-energy projects.
The financing package—comprising a USD 35 million concessional loan from the Asian Development Bank (ADB), a EUR 15.4 million grant from the European Union (EU), equivalent to USD 16.94 million, and a USD 5.5 million grant from the Japan Fund for the Joint Crediting Mechanism (JFJCM)—will finance a five-year programme to modernise the electricity distribution system from 2026 to 2030.
For the business community, one of the most significant elements is the planned introduction of Virtual Net Metering (VNM), which will be implemented in the country for the first time.
The EU-funded component will support 25 MW of aggregated rooftop solar PV capacity, specifically aimed at helping reduce the electricity-bill burden of small and medium-scale entrepreneurs.
The move could open a new investment channel for SMEs that have traditionally faced difficulties in absorbing high energy costs and making the upfront investment required for renewable-energy systems.
Rather than viewing rooftop solar simply as a household energy solution, the programme positions distributed solar as an important business-cost management tool.
For SMEs, which operate with considerably tighter margins than many large corporates, electricity expenditure can have a direct impact on competitiveness, cash flow and the ability to expand operations.
By allowing electricity generated from qualifying rooftop solar installations to be applied through a virtual net-metering arrangement, the programme is expected to broaden the economic benefits of solar power beyond individual premises.
The financial significance of the scheme extends beyond the initial 25 MW.
By establishing the infrastructure and regulatory framework required to manage aggregated distributed generation, the project could help create greater investor confidence in the development of decentralised renewable-energy assets.
The investment therefore has the potential to leverage additional private capital into the renewable-energy sector rather than functioning solely as a government-funded infrastructure programme.
The financing package is particularly notable because a substantial portion comes in the form of grants and concessional funding, reducing the cost of financing technologies that would otherwise require significant upfront capital.
The ADB loan will support the wider modernisation programme, while the EU and Japanese grant components will help finance renewable-energy integration and technologies designed to strengthen the grid.
At EDL, the investment will upgrade the existing CEBAssist platform with Advanced Metering Infrastructure (AMI), a Distributed Energy Resource Management (DERM) system and distribution control centres supported by an Advanced Distribution Management System (ADMS).
These systems will give the utility real-time visibility of electricity consumption and distributed generation, allowing it to manage an increasingly decentralised power system more efficiently.
That digital infrastructure is critical to the business case for expanding rooftop solar.
As more SMEs and other consumers generate their own electricity, the distribution network needs to know where generation is taking place, how much electricity is entering the grid and how those flows are affecting local network conditions.
Business
Renault Experience Centre opens at Majestic City
Renault has taken another significant step in its return to the Sri Lankan market with the opening of the Renault Experience Centre at Majestic City, Colombo, offering customers an opportunity to discover the brand and experience its latest models.
The Centre was officially declared open by Jawahar Ganesh, Group Managing Director of Associated Motorways (Private) Limited, accompanied by Prasanna de Silva, Director – Sales, AMW. The occasion was attended by AMW management and staff, members of the media, customers, well-wishers and other invited guests.
Located at the lobby of Majestic City, the Centre features three Renault models being introduced to the Sri Lankan market – the Renault Kwid, Renault Kiger and Renault Triber. Visitors can explore the vehicles, learn about their features and specifications, and take advantage of test drives available at the location.
Adding to the convenience for customers, AMW has ample stocks of Renault vehicles available in Sri Lanka, allowing customers to take delivery of their chosen vehicle without having to wait for months for it to arrive. Subject to completion of the necessary documentation and registration, customers can look forward to driving away in their new Renault within as little as one day, making the purchase experience faster and more convenient.
Customers can also enjoy greater peace of mind with a three-year manufacturer warranty, supported by dedicated Renault aftersales facilities to provide professional service and support throughout their ownership journey.
Commenting on the opening, Jawahar Ganesh, Group Managing Director of AMW, said, “We are delighted to welcome Renault back to Sri Lanka and to open the Renault Experience Centre at Majestic City. Renault is a brand with an exceptional heritage, a strong global presence and a reputation for innovation and distinctive automotive design. Through AMW, we are bringing that heritage and experience closer to Sri Lankan customers”.
Business
Dialog and Indira Cancer Trust continue breast cancer awareness initiative through Yeheli.lk
Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, marked the beginning of Breast Cancer Awareness Month by illuminating its Corporate Head Office in pink, in partnership with the Indira Cancer Trust, to stand in solidarity with individuals and families affected by breast cancer and encourage greater awareness, regular screening and early detection.
Building on previous breast cancer awareness campaigns conducted through Dialog’s Yeheli.lk platform in collaboration with the Indira Cancer Trust, this year’s initiative will continue throughout October under the theme, ‘A Pledge from the Heart’. As part of the campaign, members of the public can visit yeheli.lk to register for a free monthly SMS reminder and take their pledge for early detection throughout Breast Cancer Awareness Month.
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