News
Hoteliers call for state assistance
By Harischandra Gunaratna
Newly elected President of the Hotels Association of Sri Lanka (THASL) M. Shanthikumar says Budget 2022 has not addressed their problems.
Addressing THASL’s 56th anniversary celebrations at Taj Samudra, Colombo, recently, Shanthikumar said: “We are disappointed that Budget 2022 has ignored tourism. It is an industry in distress needing state assistance for survival and revival.
“Hoteliers are already burdened with a series of topline taxes and levies. The topline social security contribution of 2.5% is definitely adding to their burden. We have been without revenues for nearly 18 months but continue to pay workers and maintain our hotels. The industry will lose its competitive edge in marketing the destination with such taxes and there is no doubt it will affect the anticipated tourist arrival growth into the country.
“Being an industry with dollar earnings we need the government to consider exempting the tourism sector from the social security tax of 2.5% on the total revenue at least until such time we see the tourist arrivals stabilising the country’s economy. This is absolutely critical.
“Due to the nonpayment of the loan capital and interest during the moratorium, the loan balances increased by 40% thereby increasing the liability. The lack of funds is posing a challenge for hoteliers to continue to maintain the staff, the plant and to carry out even the smallest of refurbishment to welcome tourists.
“Seeing a virtual collapse of hotels, we requested for a long-term debt restructuring from the government as revenues and profits began to slide post the Easter Sunday attack. These were requested ONLY for businesses that had settled their dues until the Easter Sunday attack. It was very clearly stated in all THASL letters to the Government. We have no issue in this being brought in as a criteria. The most important thing is for the government to act as soon as possible. We therefore request the Govt to provide such a relief which will be very helpful to sustain this industry where over 3 million of our population depend upon.
“A long-term request to relieve the hotel industry of the burden of an unfair topline tax of 1% Municipality and by Local Government authorities has still not been settled. It is totally discriminatory to charge millions of rupees from hotels by local Government authorities when they only charge without an exception a measly sum of Rs. 6000 annually as license fees from every other industry. Why do hoteliers have to pay so much more when the industry is struggling to survive? We seek immediate attention from the Government again to resolve this issue and abolish this tax.
“So is the case with Electricity. The tariff rate for the hotel industry is higher than all the other sectors. Our request is for the Government to bring the Hotel Sector on par with the other industry tariffs and not to discriminate against the hotel sector with higher tariffs.
“Further, with the onset of the pandemic in early 2020, closed borders and vacant hotel rooms, the hoteliers could not settle their electricity bills. We requested a temporary installment settlement structure over a period of 12 month from March 2020 to September 2021 (for 18 months).
“Unfortunately, we have not received a positive response to any one of these critical requests,” Shanthikumar said.
News
Senior England players to miss Sri Lanka T20Is for WPL 2027
Senior England players, including captain Nat Sciver Brunt, will be allowed to miss a three-match T20I series in Sri Lanka if their franchises qualify for the final stages of WPL 2027 in India.
Sri Lanka Cricket (SLC) announced dates for England’s tour on Wednesday, with the three T20Is in Pallekele scheduled from February 1 to 5 acting as preparation for the inaugural Women’s T20 Champions Trophy, which runs from February 14 to 28 in India. England will then return to Sri Lanka for three ODIs in Dambulla from March 4 to 8.
The WPL runs from January 14 to February 7, and Cricinfo has learned that the ECB will allow England players to fulfil their franchise commitments even if it means missing the Sri Lanka T20Is. The approach is recognition that the WPL playoffs will provide players with good preparation for the Champions Trophy through high-stakes games in relevant conditions.
Sciver-Brunt (Mumbai Indians), Lauren Bell (Royal Challengers Bengaluru) and Sophie Ecclestone (UP Warriorz) have all been retained by their franchises for 2027. Only two English players – Sophia Dunkley and Kira Chathli – have entered next week’s auction, with the majority opting to prioritise the Sri Lanka series.
No Sri Lankan players are affected by the date clash as things stand, though captain Chamari Athapaththu and Mithali Ayodhya have both entered auction scheduled for October 28.
The ECB has previously allowed players to miss bilateral T20Is to play in the WPL, with four players – Ecclestone, Sciver-Brunt, Alice Capsey and Danni Wyatt-Hodge – arriving late for a series in New Zealand due to their participation in the 2024 edition.
The inaugural Women’s Champions Trophy was initially scheduled to be played in Sri Lanka in June-July 2027. The dates were moved forward earlier this year by the ICC, who then stripped Sri Lanka of hosting rights over government interference in their cricket administration and relocated the tournament to India.
England will also hold a red-ball training camp in India in January, selection for which will take place in the coming weeks.
The move follows head coach Charlotte Edwards’ appraisal at the end of the home summer, saying her side would need to intensify their focus on Test cricket after India thrashed them by 270 runs at Lord’s in July and with an Ashes series looming in the middle of next year.
“There will be a real focus on our red-ball cricket come December, January, February and leading into our English summer,” Edwards said at the time. “Expect potentially some of the players to be removed from county cricket. I’ll put that out there now because we’ve got a few best v best [planned].”
England Women tour to Sri Lanka
T20I series: February 1, 3, 5 (all Pallekele)
ODI series: March 4, 6, 8 (all Dambulla)
[Cricinfo]
News
Low-quality coal causes power cuts: Ex-LECO Chief
By Shamindra Ferdinando
The use of low quality coal, over a period of time, had led to the developing crisis at the Lakvijaya Coal Power Plant (LVPP) at Norochcholai that compelled the boastful NPP government to implement power cuts, former Lanka Electricity Company (Private) Limited (LECO) Chairman Bandula Chandrasekera said yesterday.
The government imposed one-hour countrywide power cuts on 19 Oct.
Chandrasekera, now a consumer rights activist, warned that though the government declared the power cuts would be limited to three days, the situation could take a turn for the worse.
The top United Republican Front (URF) activist said so in response to the government’s claim that Saturday’s sudden drop in electricity generation at the country’s only coal-fired power plant hadn’t been caused by the quality issue of coal.
The former LEOCO Chief emphasised that the country was paying a very heavy price for the controversial procurement of low-quality coal for the 2025/2026 season.
“Procurement of low quality coal is not an allegation. It has been accepted by a seven-member committee, headed by K. L. R. C. Wijayasinghe, Additional Secretary, Energy Ministry, appointed by Parliament,” Chandrasekera said, pointing out that the government was trying to mislead the public into believing that the use of coal supplied by Trident Chemphar wasn’t the cause of the current power crisis.
The expert committee that investigated the coal scam had disclosed losses caused by substandard coal, Chandrasekera said, adding that the total losses/damages could be as much as Rs 20 bn.
Trouble erupted in Dec, 2025 when LVPP began using coal purchased from the new supplier, whose selection was challenged by the Auditor General in a special report submitted to Parliament, in April this year, he said.
Since the government entered into a deal with the Indian company, LVPP has so far received 19 ship loads of coal. An investigation conducted on the orders of the Public Utilities Commission of Sri Lanka (PUCSL) revealed that the use of low-quality coal had had a detrimental impact on the LVPP.
The Frontline Socialist Party (FSP) exposed the corrupt deal in Sept. 2025. The NPP run Parliament ignored the disclosure made by the JVP breakaway faction.
Chandrasekera said that the Committee asserted that it would cost approximately Rs 80 mn to restore the LVPP to the previous status. Responding to The Island queries, Chandrasekera emphasised the country couldn’t meet the power requirement unless the LVPP operates without hindrance. Those who had been, for whatever reason, switched to South African coal provided by the Indian supplier should be held accountable and punished, Chandrasekera said, recalling how the NPP parliamentary group defeated the no-confidence motion moved against the then Power Minister Kumara Jayakody, who later quit, as the enormity of the scam and its repercussions shook the government.
Chandrasekera said that the government couldn’t maintain services though the powers that be intended to meet the power deficit with the help of hydropower generated by the Victoria power station. The ex-official underscored the need to inquire into the failure of the authorities to implement the backup plan last Saturday. Had Victoria met the requirement, last Saturday’s countrywide power failure, that lasted from 11.43 am to 11 pm could have been averted, Chandrasekera said.
He also questioned the controversial government decision to disconnect solar power over the weekend as the absence of solar generation obviously aggravated the problem. Chandrasekera emphasised that the latest countrywide power outage exposed the government whose basic strategy was to blame everything on the Opposition.
“We sincerely hope the Presidential Commission inquiring into the coal scams also looks into the situation developing at LVPP due to the use of substandard coal. According to him, the loss caused by the recent outage was estimated to be around Rs 16 bn and the crisis could not be addressed by propaganda campaigns, especially on social media. But, if other factors, including the expenditure on hydro and thermal generation were taken into consideration, the losses could be as much as Rs 20 bn.
News
Power cuts continue
Power cuts continued across the country yesterday and are expected to continue today following the shutdown of all three generating units at the Lakvijaya Power Plant in Norochcholai.
The Public Utilities Commission of Sri Lanka (PUCSL) said approval had been granted on Monday (19) following a request by the National System Operator (NSO) to impose scheduled power cuts.
Accordingly, one-hour power cuts were scheduled between 4.30 p.m. and 9.00 p.m., with the country divided into four zones. Hospitals and locations providing essential services were exempted.
The three Norochcholai generating units remain out of operation following the countrywide power failure last Saturday, prompting the NSO to introduce daily power cuts to manage the available electricity supply.
NSO Chief Executive Officer Buddhika Samarasekara said the power cuts would be necessary yesterday and today (21).
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