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Dark side of the energy picture in Sri Lanka

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The “rural energy crisis” has been receiving increasing attention from development policy makers because it affects the very survival of the vast majority of the world’s population, who live in the rural areas of the developing countries, and is also deeply inter-linked with the whole concept of sustainable development. The linkages between rural energy and sustainable development, however, need to be understood in the overall context of the energy situation in the developing countries. This also falls extremely well with SDG 7 of Agenda 2030 as an essential and a vital strategy of achieving the same.

The key message for policymakers is: Give wood energy a fair chance in the energy mix of your country in order to make the world a more sustainable and more environmentally friendly place.

Deviating from the conventional classification of energy as fuel sources which hides many development issues ,the Sri Lanka energy demand can be identified as consisting broadly of two major groups of energy (1) Centralized Commercial Energy consisting of electricity, fossil fuels and commercial renewable energy sources (2) Decentralized non commercial energy consisting of mainly biomass and other indigenous energy resources.

According to Sustainable Energy Authority (SEA) data, the largest component of energy demand in Sri Lanka in 2018 is for biomass energy amounting to 46.2.followed by 41% petroleum and 12.3% electricity (energy balance 2018). Biomass is also the main source of energy in household and industry comprising of 64..9% and 74..7 % respectively which highlights its importance as the life blood of the rural sector comprising of 81% of the total population and the industrial sector.

It is evident that burden of meeting the energy needs of group 1 has been carried out not by the government but by the rural people themselves led by the women to secure the sustenance and the livelihoods of the rural people for which government has not shown any appreciation or any interest. The mundane fact is that 191.4 PJ of energy amounting to 46.2% of the energy mix has never been the concern of the energy sector planning. What matters should not be the type of the energy source or fuel but the energy service provided which are the heat, light, mechanical and digital energy requirements.

While the energy sector should be congratulated for achieving 100% electrification in Sri Lanka which is a remarkable achievement, the present portfolios of Ministries in the energy sector focus only on Petroleum, Power and Renewable Energy Solar, Wind and Hydro Power Generation Projects Development . The major source of noncommercial biomass is overlooked . It is also observed that the term energy has been violated by identifying petroleum under the ministry of energy which is a misnomer which can create contradictions in policy matters as the term energy is used to encompass all energy resources.

The energy sector has incurred Rs 699 billion in foreign exchange almost 32% of the export earnings and an enormous expenditure to maintain a strong organizational infrastructure to cater for the commercial energy needs while neglecting the non commercial energy needs of the rural and estate poor.

This trend of depending on biomass has prevailed through out the last four decades and considering the present inequality in income distribution, it is likely to continue since affordability of modern fuels for the poor will not be a reality in the near future. This is evident from the fact that 30% of poorest get nine percent, the middle 40% get 29% and the richest 30% get 62% of the government income(Central Bank 2017 data) . A World Bank study states, at today’s prices that world LPG prices, regular users of LPG would likely need monthly household income in excess of US$350 and require at least 15 USD/month.

The Role of Liquefied Petroleum Gas in Reducing Energy https://openknowledge.worldbank.org › )

Nevertheless, presently there is a lack of focus on biomass energy by the government particularly due to the need for heavy focus on modern fuels for development of the country In contrast the important role played by biomass energy for the subsistence and economic development in the rural sector is not visible due to the decentralized and noncommercial nature of uncoordinated informal activities consisting of large number of stakeholders in the non-energy sector with a multitude of objectives not directly related to energy per se. Biomass energy is really not produced by the energy sector but a by product of activities carried out by the forestry, agriculture and plantation sectors which is not their main objective thus making biomass no one’s baby.

It is observed that this complication of uncoordinated, informal relationships and lack of insensitivity of the government which have contributed towards lack of governance within the energy sector in Sri Lanka have further isolated the low income rural sector to find their own solutions for survival. Non-cognizance on low-cost, improved biomass solutions has led to a scenario where biomass energy is negatively perceived with detrimental effects on sustainable development. It is totally unwelcoming to see that there is no appropriate mechanism devoted to the management of indigenous energy resources which still serves as the energy backbone of Sri Lanka.

The negative image of biomass, tends to be associated with deforestation, climate change under-development,  poverty and negative health effects. This image steers policy makers towards the replacement  of   biomass by other fuels, instead of improving  sustainability of the sector with integrated and holistic approaches.

In spite of the focus on alternatives, it is unlikely that biomass use will decrease in absolute terms over the coming decades. There is no evidence to show that firewood use is contributory factor to deforestation. Main four reasons for deforestation in Sri Lanka are encroachments due to agriculture, gem mining and settlements, infrastructure development projects, commercial agriculture ventures and several localized drivers like cattle grazing, cardamom cultivation and forest fires. (Kariyawasam, Ravindra, and Chinthka Rajapakse).

However, despite of the fact that, firewood is underestimated and ridiculed as a primitive fuel, the use of firewood by a majority of the population of Sri Lanka has not deprived but contributed towards the wellbeing of Sri Lanka in achieving many development indicators in moderation compared to many middle income countries. For an example according to world rankings, Sri Lanka’s rankings are Human Development Index 71, health 48, social capital 33, prosperity 84 and education 62. Moreover, a female born in Sri Lanka can expect to live 80.1 years (despite using firewood for cooking ) as oppose to 79 years in America). Infant Deaths/1000 in Sri Lanka is six, where it is six in America and 27 in India .

In the name of good governance and justice it is high time that the Ministry of Power and Renewable Energy (Sustainable Energy Authority) take action to avoid a looming disaster in the near future due to the informal nature of biomass supply and use of biomass is allowed to continue without inputs from the government which not only create social instability also hamper the efforts of achieving sustainable development goals.

The scope for the government is to facilitate the availability of supply, provide low cost technology support for efficient use by improving access to ventilation and efficient use through improved stoves and mitigate negative impacts on health and climate as alleged by the international community. Nearly eight million tons of firewood is required annually for cooking and livelihoods and four million tons of firewood for the industrial sector. Each house would require nearly two tons/year. Meeting this target would require the coordination and integration of the various stakeholder activities already providing informal facilitation in unofficial ways.

Although negative perceptions of biomass energy are widespread, biomass is not necessarily an unsustainable or backward fuel. Sustainability depends on the practices applied in the value chain; for example forest management techniques and the efficiency of conversion and use. These commonly held misconceptions tend to associate biomass fuels with deforestation, indoor air pollution and underdevelopment.(European Union Energy Initiative and GIZ, Germany ). http://www.euei-pdf.org/fr/node/3880.

In the name of governance in the energy sector in Sri Lanka, the objective of this article is to request the Sustainable Energy Authority which has been given the mandate to promote renewable energy (not only commercial energy) to take the leadership and initiative to invite the relevant stakeholders, donors, NGOs for a consultative meeting with a view to identify stakeholders and cross cutting activities, linkages and capacity and make aware the importance of rural sustainable energy interventions which needs the formation of a network of organizations to be established under the local government ministry facilitated by the sustainable energy authority comprising of specially dedicated staff to biomass energy development.

R.M.Amerasekera. Eng

Executive Director, Integrated Development Association (IDEA)

Energy Advisor to Former Minister of Local Government Admiral Sarath Weerasekara

Project Manager, National Fuel Wood Conservation Programme

Electrical Engineer (Alternative Energy Development Unit, CEB)

Retired Director, Sustainable Energy Authority

Short term Consultant to the UNDP(Sudan), World Bank and FAO

Recipient of First Ever Sri Lanka Energy Efficiency Award(2015), Awarded by HE the President

for bringing sustainable energy solutions to people

Recipient of Mohan Munasingha Award (1985) for Energy Conservation Efforts

Nominee for World Clean Energy Award(2007)



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First Capital Holdings records Rs. 3.23Bn Total Comprehensive Income for 9M FY2025/26

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First Capital Holdings PLC, a subsidiary of JXG (Janashakthi Group) and a pioneering force in Sri Lanka’s investment bank landscape recorded a Total Comprehensive Income of Rs. 3.23Bn for the nine months ended 31 December 2025, compared to Rs. 4.53Bn in the corresponding period of the previous year. For the third quarter of 2025/26, the Group reported a Total Comprehensive Loss of Rs. 0.17Bn, after accounting for a dividend tax expense of Rs. 0.41Bn.

The Group’s Net Income before Operating Expenses for the nine months of 2025/26 amounted to Rs.6.33Bn compared to Rs. 7.69Bn reported in the corresponding period of the previous year. Trading income was primarily driven by the Primary Dealer and Corporate Dealing Securities divisions, reinforcing the Group’s positioning across fixed income and equity market segments.

The Primary Dealer division reported a Profit after Tax of Rs. 1.64Bn for the nine months ended 31 December 2025 (1st nine months of 2024/25 – Profit after Tax of Rs. 2.45Bn). The results include trading gains on the government securities portfolio of Rs. 1.66Bn and net interest income of Rs. 1.41Bn (1st nine months of 2024/25 – trading gains of Rs. 3.18Bn and net interest income of Rs. 1.31Bn), reflecting movements in yields and trading conditions during the period.

The Corporate Finance Advisory and Dealing Securities division recorded a Profit after Tax of Rs. 1.86Bn for the nine months ended 31 December 2025 (1st nine months of 2024/25 – Profit after Tax of Rs. 1.94Bn). The business unit reported total trading gains of Rs. 2.33Bn on its equity portfolio, compared to Rs. 2.23Bn in the corresponding period of the previous year, supported by market participation and portfolio positioning.

The Wealth Management division reported a Profit after Tax of Rs. 78.1Mn for the nine months ended 31 December 2025 (1st nine months of 2024/25 – Profit after Tax of Rs. 90.1Mn). Assets under Management stood at Rs. 96.4Bn as at 31 December 2025, compared to Rs. 115.9Bn as at 31 March 2025, reflecting market conditions and client portfolio adjustments.

The Stock Brokering division recorded a Profit after Tax of Rs. 166.3Mn for the nine months ended 31 December 2025, compared to Rs. 39.5Mn reported in the corresponding period of the previous year, supported by increased trading activities.

Commenting on the Group’s performance, Rajendra Theagarajah, Chairman of First Capital Holdings PLC, stated, “The operating environment during the period was shaped by shifts in interest rates, capital market activities, and fiscal adjustments. Against this backdrop, the Group’s performance reflects the structural strength of its capital markets platform and its ability to generate income across multiple market cycles while maintaining financial discipline.”

Dilshan Wirasekara, Managing Director / CEO of First Capital Holdings PLC, said, “Our priority during the period was to manage each business line with a clear focus on risk, liquidity and execution. Improved performance in stock brokering and consistent contributions from corporate finance reflect our ability to respond to market conditions while aligning capital deployment with client and market opportunities.”

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Keells Nexus introduces an all new Loyalty App

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Keells is set to usher a new chapter in customer experience with the relaunch of Keells Nexus with the introduction of its all-new loyalty app on 13th February. For 25 years, Keells Nexus has been at the heart of Sri Lankan retail, pioneering coalition loyalty and even introducing mobile-based loyalty as early as 2014. The loyalty program is building on this legacy, combining state-of-the-art technology with richer, more personalized rewards and seamless integration across the Keells ecosystem with an intuitive mobile experience.

Today, Keells Nexus stands at over 2 million registered members, a reflection of the trust customers place in Keells and the brand’s commitment to improving the quality of life for the nation. The launch further strengthens Keells’ long-standing focus on tech-enabled retail efficiency, following innovative retail experiences to customers such as self-checkout counters and retail technology that drives efficiency such as advanced inventory management systems.

The new app therefore is the next logical step in this journey, bringing together rewards, offers, and account visibility in one intuitive, streamlined interface. The new Keells Nexus app brings together all deals, savings and partner offers in one place, giving customers complete visibility and control. Members can track their points in real time, scan a QR code at checkout to earn rewards instantly, and enjoy a more personalised, more connected shopping experience.

“At the heart of Keells Nexus is a simple but powerful belief that life is better when we’re connected,” said Nilusha Fernando Head of Marketing, Keells Supermarkets & Senior Vice President, John Keells Group.

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IDL, Clouds by SOZO and the Rukmini Tissanayagam Trust partner with the HSBC Ceylon Literary & Arts Festival 2026

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The HSBC Ceylon Literary & Arts Festival 2026, taking place from 13 to 15 February at Cinnamon Lakeside, Colombo, promises to be one of those rare cultural moments that linger long after the last session ends. It is a gathering not only of writers, artists and thinkers, but of ideas, shared, challenged and celebrated in spaces where curiosity feels welcome.

The HSBC Ceylon Literary & Arts Festival 2026 is supported by several organizations through non-promotional CSR initiatives, including Clouds by SOZO and the Rukmini Tissanayagam Trust. International Distillers Limited contributes in a strictly neutral CSR capacity, providing logistical and resource support for the event without any brand promotion or product visibility.

The Festival celebrates Sri Lanka’s creative voice by showcasing literature, arts, and cultural talent from across the country. All supporting organizations participate solely in a philanthropic and educational role, ensuring that the focus remains on artistic expression and community engagement.

The Rukmini Tissanayagam Trust brings to the Festival a deep and enduring commitment to nurturing literature and the arts as essential pillars of society. Its work is driven by the belief that creative spaces are not optional additions, but vital platforms that shape how communities think, feel and engage with the world around them.

Speaking on this collaboration, Indhu Selvaratnam, Director of SOZO Beverages and Trustee

of The Rukmini Tissanayagam Trust, stated, “The Rukmini Tissanayagam Trust is delighted to partner with the Ceylon Literary Festival for the second time. We are deeply committed to enriching Sri Lanka’s intellectual and cultural landscape and admire the festival’s evolution in embracing literature, art, music, and initiatives that nurture emerging local talent. These efforts align closely with the Trust’s mission to support creative expression, and we look forward to continuing our support as the festival strengthens Sri Lanka’s global cultural presence.”

Adding a complementary dimension to this partnership is Clouds by SOZO, Sri Lanka’s premium mountain spring water brand, whose ethos of purity, sustainability and thoughtful living aligns naturally with the spirit of the Festival. Sourced from a pristine spring in the Knuckles mountain range, Clouds represents a return to authenticity, an idea that resonates strongly within creative and cultural spaces.

Speaking on the partnership, Dushyantha De Silva, Founder of SOZO Beverages (Pvt) Ltd, said, “The arts invite us to slow down, to observe, and to think more deeply, and Clouds comes from that same place of intention. Supporting the HSBC Ceylon Literary & Arts Festival is about being part of a space where ideas flow freely and thoughtfully. It’s a privilege for us to align with a platform that values creativity, dialogue and conscious choices.”

The HSBC Ceylon Literary & Arts Festival 2026 offers something increasingly rare: three uninterrupted days of ideas. Of language and imagination. Of conversations that do not require a screen to feel alive. It is a reminder of the power of gathering, of listening, discovering and engaging with perspectives that challenge and inspire.

As February approaches, the hope is simple: that more people choose to attend, to listen, and to support Sri Lankan creativity in all its forms. Because when a country invests in its writers and artists, it is not merely celebrating talent, it is shaping how it remembers, how it questions, and how it evolves.

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