News
Power sector overhaul targets losses, debt and tariffs
Independent trade unions cry foul
The government has launched a far-reaching overhaul of the electricity industry, breaking up the Ceylon Electricity Board (CEB) into six fully state-owned companies, claiming to rein in chronic losses and mounting debt.
Under the Preliminary Transfer Plan, the newly incorporated entities, namely, Electricity Generation Lanka (Pvt) Ltd (EGL), National Transmission Network Service Provider (Pvt) Ltd (NTNSP), National System Operator (Pvt) Ltd (NSO), Electricity Distribution Lanka (Pvt) Ltd (EDL), CEB Employees Funds (Pvt) Ltd (CEBEF) and Energy Ventures Lanka (Pvt) Ltd (EVL), will take over the assets, liabilities and operations of the CEB from the appointed date.
Independent trade unions have opposed the restructuring programme.
At the core of the new model is the creation of an independent National System Operator, which will handle power system planning and competitively procure electricity from Electricity Generation Lanka, Independent Power Producers and non-conventional renewable energy developers. Power will be wheeled through the national grid operated by the NTNSP and sold to distribution companies.
Explaining the economic rationale, Eng. Pubudu Niroshan Hedigallage said the separation of functions was critical to restoring cost discipline in the sector.
“Electricity planning and procurement will now be carried out independently, based on least-cost principles. That is essential if we are to control generation costs and ease the upward pressure on tariffs,” he said.
Electricity Generation Lanka, though a successor to the CEB, will compete with private and renewable energy producers for projects, a move expected to curb inefficiencies and end guaranteed returns enjoyed under earlier arrangements.
“There will be no automatic allocation of projects. EGL must compete in the market like any other generator,” Eng. Hedigallage said.
According to officials, the Preliminary Transfer Plan provides for one generation and one distribution company initially, with further unbundling planned under the Final Transfer Plan to introduce sharper financial accountability at operational level.
Economists note that the restructuring is closely watched by multilateral lenders and investors, who have repeatedly flagged the power sector as a major fiscal risk.
The government has insisted that the reforms do not amount to privatisation, stressing that all six entities remain 100 percent state-owned. However, independent trade unions are of the view that what the government has undertaken is divestiture in all but name.
By Ifham Nizam
News
Controversy over absence of Agriculture Minister, Deputy at NPP’s inaugural farmers’ rally
By Shamindra Ferdinando
The absence of Agriculture Minister Lal Kantha and his Deputy Namal Karunaratne at the NPP’s farmers’ rally at Polonnaruwa, on Saturday (12) revealed the government’s failure to address the problems faced by the farming community, the SLPP says.
Former Kalutara District SLPP MP Sanjeewa Edirimanna said that politburo member Lal Kantha, who represented the NPP’s highest decision-making body, and his Deputy, Karunaratne, couldn’t face the farmers, and hence their absence at Saturday’s rally. Their absence underscored the gravity of the situation, Edirimanna said, thanking the NPP for openly acknowledging the crisis in the agricultural sector.
Kandy District MP Lal Kantha was not immediately available for comment. When The Island sought an explanation from Deputy Minister Karunaratne regarding their absence, he said that there was no need for all of them to attend each and every NPP rally.
President Anura Kumara Dissanayake addressed Saturday’s gathering on behalf of the party and there shouldn’t be any issue over their absence, MP Karunaratne said.
Karunaratne said so when The Island pointed out that their presence mattered as it was the inaugural farmers’ rally held almost two years after the last presidential election.
MP Karunaratne claimed that the Polonnaruwa rally was not on his schedule for 12 Sept.
Ex-MP Edirimanna pointed out that Minister Lal Kantha had addressed both the Bulathsinhala and Beruwala rallies, held on 6 Sept., which marked the commencement of the NPP propaganda campaign, launched amidst growing dissent over the way the government sought to enact the 22nd Amendment to the Constitution.
Edirimanna said that the NPP couldn’t justify both Ministers in charge of agriculture skipping the Polonnaruwa rally. Responding to another query, Edirimanna said that he wouldn’t attribute their absence to any internal conflict but the NPP’s overall failure to address the growing grievances of the farming community.
Edirimanna said that in spite of promises, the NPP had pathetically failed to ensure a reasonable pricing formula for paddy. The President again promised to implement an efficient paddy purchasing scheme at the next harvesting season, the ex-MP said, adding that the government should be ashamed and accept responsibility.
Edirimanna stressed that the government’s vow to implement a mandatory price for different varieties of paddy remained just a promise.
News
Thousands march in Jaffna demanding international investigation into Chemmani
A demonstration was held in Jaffna on Sunday (14) demanding an international investigation into the Chemmani mass grave, which protesters said constitutes evidence of the genocide committed against Tamils, Tamil Guardian HAS reported.
The procession began near the United Nations office, close to the Kailasa Pillayar Temple in Nallur, and proceeded to Kittu Park, where it concluded with a public gathering. Protesters demanded an international inquiry into the 583 sets of human skeletal remains and other evidence recovered from the site.
The rally was organised jointly by the Tamil National Council and civil society organisations, which had called for the excavation, preservation and forensic analysis of Chemmani and other mass graves to be placed entirely under the responsibility of the United Nations, without intervention by the Sri Lankan state.
A party alleged to have been responsible for a crime cannot be expected to exercise exclusive control over the evidence needed to investigate it, the council argued ahead of the demonstration, warning that placing such material under the control of an alleged perpetrator creates a risk that evidence could be damaged or compromised, Tamil Guardian reported.
Alongside the Chemmani demands, the organisers had called for an independent international criminal investigation into the genocide of Tamils, the transfer of evidence to the International Criminal Court, the immediate release of political prisoners held under the Prevention of Terrorism Act and the repeal of that legislation, the withdrawal of the military from the North-East, the return of occupied land, and international recognition of the Eelam Tamil people’s right to self-determination.
News
FAC that sank last month recovered in salvage operation
The Sri Lanka Navy recovered its Fast Attack Craft P 4447 following a successful salvage operation, bringing a multi-stage emergency response to a close.
The craft sank during a routine patrol, on 15 August 2026, off Angulana, after colliding with a previously sunken bulk carrier. It was brought to the surface on 11 September from a depth of approximately 80 feet. It was subsequently towed to the Colombo Dockyard premises.
The initial phase of the operation, immediately following the incident, focused on search and rescue. A joint effort, involving the Navy, Air Force, Police, and local fishermen from Angulana, helped rescue of 11 crew members. The search and rescue phase drew to a close with the recovery of the remains of the Second in Command of the craft, on 4th September.
Following the search and rescue phase, specialised Navy diving and salvage teams launched a dedicated recovery phase against rough sea conditions and underwater challenges, adhering to strict safety protocols. The Navy’s marine, hull, electrical, and electronic engineering teams utilised specialised technical know-how and equipment to raise the vessel in stages, the Navy said.
Technical support and specialised expertise were also extended by the Sri Lanka Ports Authority and Colombo Dockyard PLC.

The salvaged FAC (pic courtesy SLN media)
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