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A viable FIT for Sri Lankan electricity industry

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By Eng. Parakrama Jayasinghe
parajayasinghe@gmail.com

It is common wisdom to consider that the reliable supply of energy, particularly electricity, is an essential requirement for growth of the GDP by other sectors of the economy. But it must be realized that the energy services industry itself could be a major contributor to the GDP growth by itself, while serving the needs of all other sectors of the economy. This paradigm has been exploited to the maximum by the middle east countries, as well as coal exporting countries. Hitherto Sri Lanka has only concentrated on the need to provide continuous energy to other sectors of the economy both Electricity and other sources of energy to support their growth. In the electricity Sector until 1996, when 95% of the electricity was generated using indigenous renewable resources and thereby low electricity tariff levels, this appeared acceptable. However, with increase in the energy demand and over dependence on imported fossil fuels, this policy has created innumerable problems, with heavy drain on FOREX and higher cost of electricity and transport.

Ostrich attitude in continuing to depend on imported fossil fuels

There appears to be a sense of complacency, with the state pretending to be comfortable in providing uninterrupted power, ignoring the heavy burden on the balance of payments. Obviously, the fact that Sri Lanka had to face the ignominy of declaring bankruptcy and the need to repay the Billions borrowed in US Dollars loans, does not seem to be a consideration of those in charge of the energy sector. Such irresponsible behaviour is not what is expected from a government.

However, in recent times with the development of renewable energy technologies and their proven feasibility technically and financially and favourable impact on Sri Lanka’s electricity supply, it is indeed unfortunate that this realism and immense opportunity is ignored by our energy planners. The recent events have dispelled the myth that renewable energy is expensive and it is now well established that all commercially established renewable source-based power generation is definitely more economical than any form of fossil fuel-based electricity. Sri Lanka is also blessed with such renewable energy resources of capacity many times over our needs for several decades to come. This bonanza should and could serve as the vehicle through which Sri Lanka can overcome the present economic debacle. (See diagram)

The Feed in Tariff – Driver for RE Development

The private sector has demonstrated its commitment and capability to contribute towards this national service even under difficult circumstances and sometimes willful barriers created by vested interests wanting to perpetuate the continued dependence on imported fossil fuels.

The most visionary and progressive systems offered under the Surya Bala Sangramaya has already paid dividends with 825 MW of roof top solar providing 1200 GWh annually to the national energy mix. This may be a unique innovation in the whole world and Sri Lanka’s gratitude is due to everyone who created and developed this system. Also, its benefits and potential scope has expanded greatly with the progressive relaxation of the regulations on system capacities permitted by the CEB. It is hoped that they would continue to support this development by working towards the target of one million roof top systems as the first target, which is of great value to the cash strapped nation.

The recent upheavals in the economy and balance of payments, which have been addressed in the tariff revision in November 2022, offering a fixed tariff over the entire contract period, which contributed to the viability of the existing FITs resulted in the exponential growth of the sector as shown below. (See graph)

The somewhat controversial and ill-conceived system of variable tariff announced in June 2023 did not evoke any confidence in the investors, both due to its unnecessary complexity and the uncertainty making it totally nonbankable. A developer has no means of predicting the FIT he would get in the future, as the system is expected to be updated every three months. While the parameters used for the calculation have been declared, the actual values used for the original declaration nor the amendment done in October 2023, have not been published. Any developer would like to make his own predictions for the future before accepting any such scheme however attractive the original numbers were. The first amendment in October itself has shown the very likely downward trend scaring away any investors. Thankfully the CEB has provided the option of selecting the previous Fixed Tariff gazetted in November 2022. I believe that most if not all new projects have opted for the same.

This message must be heard loud and clear by the present committee reviewing the FIT system.

The attraction of Dendro Power

While the Roof Top Solar PV system supported by the regulations under the Surya Bala Sangraamaya, which by any standard is a most visionary approach, provided the means for the consumers even those in the domestic category to contribute participate in the nation’s power sector development by becoming “Prosumers” perhaps an even more far reaching and socially significant contribution by the people is possible by the development of the Dendro Energy, with Sri Lanka’s own proven concept of using sustainably grown short rotation coppicing species such as Gliricidia, where the rural farmers become the suppliers of the fuel for generation of firm energy on a year round 24/7 basis. It is important to recognize that Dendro Power is available all the time with a Plant Factor of 85% Vs 16% from Solar and may be 30% from Wind, with multiple spin off benefits to many sectors of the economy.

While we are thankful to the present minister for removing the artificially created obstruction of Dendro Development over the past six years, an attractive FIT is needed to win back the investors who abandoned the industry.

As a matter of interest, the flow of funds to the rural economy even from a 10 MW Dendro power plant is over Rs 1200 million annually, providing firm power which would otherwise be generated using imported fossil fuels. The savings in FOREX by the equivalent reduction of oil-based power is US $ 20 Million. This opportunity unfortunately does not attract any official attention. This is clearly the means of ensuring

“Power for the People by the People”

In this light the provisions in the proposed new Feed in Tariff structure needs urgent re-consideration as noted below

The Need for Level Playing Field


We give below a few specific examples of how this tariff mechanism discriminates against renewable energy (RE) producers particularly the local investors, and clearly disadvantages RE producers in ways that fossil fuel suppliers are not:

Price caps on RE producers; No price caps on fossil fuel power suppliers: CEB marginal cost of dispatchable plants is set as the maximum price cap for RE producers. For fossil fuel producers, there is no such price cap. At the very least, the CEB should treat all energy producers equally, and since fossil fuel producers do not have a price cap in their contracts, such a price cap should be removed from RE contracts as well. It is time that the CEB declared the true cost of generation using fossil fuel, both in CEBs owned plants and the IPPs, calculated on the same basis as the REs using the same formulae and the appropriate parameters including the cost of externalities. This will clearly highlight the value and urgency to provide the maximum support for RE development.

Tariff recalculation on a quarterly basis: This is totally impractical and poses a further disincentive, Project planning and financial closure invariably extend beyond three months, particularly for the larger commercial ventures, and such a quarterly tariff recalculation, which is not a feature present anywhere else in the world, makes financial planning for a large venture quite impossible. In order to capture any variations in the relevant parameter an annual re-calculation is more practical and should apply only for those projects approved in the respective year and not with retrospective effect.

It is apparent that this condition has been brought in consideration of the most disadvantageous financial parameters applicable in Sri Lanka at the time of development of this tariff system (June 2023) and in expectation of easing of these in the future. But the way it is applied, shows lack of appreciation of the ground situation, disincentivising the development of RE, while continually spending millions of dollars for use of oil for generation, which some of which could have been averted by providing favourable terms for the RE developers ready to enter in to the market now. There is a clear lack of holistic approach towards the long term national interest as described in the preamble.

Additional burden to RE investors through an Escrow account requirement: deposit of 2% of revenue in an Escrow Account is required of RE investors, another additional requirement imposed on RE investors alone.

This is further disincentive and a lopsided logic ignoring that the CEB has defaulted in payments for the RE developers for nearly a year or more. This has driven many such investors to near bankruptcy. Also such provisions are a further barrier for the local investors as against the large foreign investors for whom such requirements would not be a major burden.

A Clear Commitment from the CEB officials for RE Development

It is well known that, in spite of the protestations of support for the development of the renewable energy development by the Ministry, CEB and the SLSEA, the field level reality is quite different. All developers would testify to the hassle they face at every level and the inordinate delays by the respective officers, not limited to those in the Utility, but the plethora of other state agencies (other than for Roof Top Systems) , who appear to believe that hindrance or delaying the projects is their duty . (With apologies to the few officials who appreciate the national importance of RE and strive to ease the path of approval process).

Essential Features of a viable Feed in Tariff

We therefore request the following as minimum measures to keep all energy producers for the CEB on an equal footing:

*  Remove the price cap on RE producers

*  Remove the references to marginal cost and retain the cost+profit model

*  Tariff revision on an annual basis (not quarterly)

*  The capital cost component applicable at time of signing SPPA to be fixed for the period of loan recovery

*  Remove the requirement for Escrow accounts

*  Reset inflation to a more realistic level and adjust O&M charges accordingly

*  All tariff to be paid in Sri Lankan rupees. Any foreign investors must receive the tariff in rupees , but be permitted to repatriate the investment and fair profits under the systems prevailing under the BOI

Most importantly, the energy sector should be a Sri Lankan Industry to ensure future energy security and it is requested that a clear and simplified tariff calculation mechanism is provided so that investors and ‘prosumers’ themselves can use the mechanism to calculate and forecast financial feasibility of a project.



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Features

The call for review of reforms in education: discussion continues …

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PM Harini Amarasuriya

The hype around educational reforms has abated slightly, but the scandal of the reforms persists. And in saying scandal, I don’t mean the error of judgement surrounding a misprinted link of an online dating site in a Grade 6 English language text book. While that fiasco took on a nasty, undeserved attack on the Minister of Education and Prime Minister Harini Amarasuriya, fundamental concerns with the reforms have surfaced since then and need urgent discussion and a mechanism for further analysis and action. Members of Kuppi have been writing on the reforms the past few months, drawing attention to the deeply troubling aspects of the reforms. Just last week, a statement, initiated by Kuppi, and signed by 94 state university teachers, was released to the public, drawing attention to the fundamental problems underlining the reforms https://island.lk/general-educational-reforms-to-what-purpose-a-statement-by-state-university-teachers/. While the furore over the misspelled and misplaced reference and online link raged in the public domain, there were also many who welcomed the reforms, seeing in the package, a way out of the bottle neck that exists today in our educational system, as regards how achievement is measured and the way the highly competitive system has not helped to serve a population divided by social class, gendered functions and diversities in talent and inclinations. However, the reforms need to be scrutinised as to whether they truly address these concerns or move education in a progressive direction aimed at access and equity, as claimed by the state machinery and the Minister… And the answer is a resounding No.

The statement by 94 university teachers deplores the high handed manner in which the reforms were hastily formulated, and without public consultation. It underlines the problems with the substance of the reforms, particularly in the areas of the structure of education, and the content of the text books. The problem lies at the very outset of the reforms, with the conceptual framework. While the stated conceptualisation sounds fancifully democratic, inclusive, grounded and, simultaneously, sensitive, the detail of the reforms-structure itself shows up a scandalous disconnect between the concept and the structural features of the reforms. This disconnect is most glaring in the way the secondary school programme, in the main, the junior and senior secondary school Phase I, is structured; secondly, the disconnect is also apparent in the pedagogic areas, particularly in the content of the text books. The key players of the “Reforms” have weaponised certain seemingly progressive catch phrases like learner- or student-centred education, digital learning systems, and ideas like moving away from exams and text-heavy education, in popularising it in a bid to win the consent of the public. Launching the reforms at a school recently, Dr. Amarasuriya says, and I cite the state-owned broadside Daily News here, “The reforms focus on a student-centered, practical learning approach to replace the current heavily exam-oriented system, beginning with Grade One in 2026 (https://www.facebook.com/reel/1866339250940490). In an address to the public on September 29, 2025, Dr. Amarasuriya sings the praises of digital transformation and the use of AI-platforms in facilitating education (https://www.facebook.com/share/v/14UvTrkbkwW/), and more recently in a slightly modified tone (https://www.dailymirror.lk/breaking-news/PM-pledges-safe-tech-driven-digital-education-for-Sri-Lankan-children/108-331699).

The idea of learner- or student-centric education has been there for long. It comes from the thinking of Paulo Freire, Ivan Illyich and many other educational reformers, globally. Freire, in particular, talks of learner-centred education (he does not use the term), as transformative, transformative of the learner’s and teacher’s thinking: an active and situated learning process that transforms the relations inhering in the situation itself. Lev Vygotsky, the well-known linguist and educator, is a fore runner in promoting collaborative work. But in his thought, collaborative work, which he termed the Zone of Proximal Development (ZPD) is processual and not goal-oriented, the way teamwork is understood in our pedagogical frameworks; marks, assignments and projects. In his pedagogy, a well-trained teacher, who has substantial knowledge of the subject, is a must. Good text books are important. But I have seen Vygotsky’s idea of ZPD being appropriated to mean teamwork where students sit around and carry out a task already determined for them in quantifying terms. For Vygotsky, the classroom is a transformative, collaborative place.

But in our neo liberal times, learner-centredness has become quick fix to address the ills of a (still existing) hierarchical classroom. What it has actually achieved is reduce teachers to the status of being mere cogs in a machine designed elsewhere: imitative, non-thinking followers of some empty words and guide lines. Over the years, this learner-centred approach has served to destroy teachers’ independence and agency in designing and trying out different pedagogical methods for themselves and their classrooms, make input in the formulation of the curriculum, and create a space for critical thinking in the classroom.

Thus, when Dr. Amarasuriya says that our system should not be over reliant on text books, I have to disagree with her (https://www.newsfirst.lk/2026/01/29/education-reform-to-end-textbook-tyranny ). The issue is not with over reliance, but with the inability to produce well formulated text books. And we are now privy to what this easy dismissal of text books has led us into – the rabbit hole of badly formulated, misinformed content. I quote from the statement of the 94 university teachers to illustrate my point.

“The textbooks for the Grade 6 modules . . . . contain rampant typographical errors and include (some undeclared) AI-generated content, including images that seem distant from the student experience. Some textbooks contain incorrect or misleading information. The Global Studies textbook associates specific facial features, hair colour, and skin colour, with particular countries and regions, and refers to Indigenous peoples in offensive terms long rejected by these communities (e.g. “Pygmies”, “Eskimos”). Nigerians are portrayed as poor/agricultural and with no electricity. The Entrepreneurship and Financial Literacy textbook introduces students to “world famous entrepreneurs”, mostly men, and equates success with business acumen. Such content contradicts the policy’s stated commitment to “values of equity, inclusivity and social justice” (p. 9). Is this the kind of content we want in our textbooks?”

Where structure is concerned, it is astounding to note that the number of subjects has increased from the previous number, while the duration of a single period has considerably reduced. This is markedly noticeable in the fact that only 30 hours are allocated for mathematics and first language at the junior secondary level, per term. The reduced emphasis on social sciences and humanities is another matter of grave concern. We have seen how TV channels and YouTube videos are churning out questionable and unsubstantiated material on the humanities. In my experience, when humanities and social sciences are not properly taught, and not taught by trained teachers, students, who will have no other recourse for related knowledge, will rely on material from controversial and substandard outlets. These will be their only source. So, instruction in history will be increasingly turned over to questionable YouTube channels and other internet sites. Popular media have an enormous influence on the public and shapes thinking, but a well formulated policy in humanities and social science teaching could counter that with researched material and critical thought. Another deplorable feature of the reforms lies in provisions encouraging students to move toward a career path too early in their student life.

The National Institute of Education has received quite a lot of flak in the fall out of the uproar over the controversial Grade 6 module. This is highlighted in a statement, different from the one already mentioned, released by influential members of the academic and activist public, which delivered a sharp critique of the NIE, even while welcoming the reforms (https://ceylontoday.lk/2026/01/16/academics-urge-govt-safeguard-integrity-of-education-reforms). The government itself suspended key players of the NIE in the reform process, following the mishap. The critique of NIE has been more or less uniform in our own discussions with interested members of the university community. It is interesting to note that both statements mentioned here have called for a review of the NIE and the setting up of a mechanism that will guide it in its activities at least in the interim period. The NIE is an educational arm of the state, and it is, ultimately, the responsibility of the government to oversee its function. It has to be equipped with qualified staff, provided with the capacity to initiate consultative mechanisms and involve panels of educators from various different fields and disciplines in policy and curriculum making.

In conclusion, I call upon the government to have courage and patience and to rethink some of the fundamental features of the reform. I reiterate the call for postponing the implementation of the reforms and, in the words of the statement of the 94 university teachers, “holistically review the new curriculum, including at primary level.”

(Sivamohan Sumathy was formerly attached to the University of Peradeniya)

Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.

By Sivamohan Sumathy

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Constitutional Council and the President’s Mandate

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A file photo of a Constitutional Council meeting

The Constitutional Council stands out as one of Sri Lanka’s most important governance mechanisms particularly at a time when even long‑established democracies are struggling with the dangers of executive overreach. Sri Lanka’s attempt to balance democratic mandate with independent oversight places it within a small but important group of constitutional arrangements that seek to protect the integrity of key state institutions without paralysing elected governments.  Democratic power must be exercised, but it must also be restrained by institutions that command broad confidence. In each case, performance has been uneven, but the underlying principle is shared.

 Comparable mechanisms exist in a number of democracies. In the United Kingdom, independent appointments commissions for the judiciary and civil service operate alongside ministerial authority, constraining but not eliminating political discretion. In Canada, parliamentary committees scrutinise appointments to oversight institutions such as the Auditor General, whose independence is regarded as essential to democratic accountability. In India, the collegium system for judicial appointments, in which senior judges of the Supreme Court play the decisive role in recommending appointments, emerged from a similar concern to insulate the judiciary from excessive political influence.

 The Constitutional Council in Sri Lanka  was developed to ensure that the highest level appointments to the most important institutions of the state would be the best possible under the circumstances. The objective was not to deny the executive its authority, but to ensure that those appointed would be independent, suitably qualified and not politically partisan. The Council is entrusted with oversight of appointments in seven critical areas of governance. These include the judiciary, through appointments to the Supreme Court and Court of Appeal, the independent commissions overseeing elections, public service, police, human rights, bribery and corruption, and the office of the Auditor General.

JVP Advocacy

 The most outstanding feature of the Constitutional Council is its composition. Its ten members are drawn from the ranks of the government, the main opposition party, smaller parties and civil society. This plural composition was designed to reflect the diversity of political opinion in Parliament while also bringing in voices that are not directly tied to electoral competition. It reflects a belief that legitimacy in sensitive appointments comes not only from legal authority but also from inclusion and balance.

 The idea of the Constitutional Council was strongly promoted around the year 2000, during a period of intense debate about the concentration of power in the executive presidency. Civil society organisations, professional bodies and sections of the legal community championed the position that unchecked executive authority had led to abuse of power and declining public trust. The JVP, which is today the core part of the NPP government, was among the political advocates in making the argument and joined the government of President Chandrika Bandaranaike Kumaratunga on this platform.

 The first version of the Constitutional Council came into being in 2001 with the 17th Amendment to the Constitution during the presidency of Chandrika Bandaranaike Kumaratunga. The Constitutional Council functioned with varying degrees of effectiveness. There were moments of cooperation and also moments of tension. On several occasions President Kumaratunga disagreed with the views of the Constitutional Council, leading to deadlock and delays in appointments. These experiences revealed both the strengths and weaknesses of the model.

 Since its inception in 2001, the Constitutional Council has had its ups and downs. Successive constitutional amendments have alternately weakened and strengthened it. The 18th Amendment significantly reduced its authority, restoring much of the appointment power to the executive. The 19th Amendment reversed this trend and re-established the Council with enhanced powers. The 20th Amendment again curtailed its role, while the 21st Amendment restored a measure of balance. At present, the Constitutional Council operates under the framework of the 21st Amendment, which reflects a renewed commitment to shared decision making in key appointments.

 Undermining Confidence

 The particular issue that has now come to the fore concerns the appointment of the Auditor General. This is a constitutionally protected position, reflecting the central role played by the Auditor General’s Department in monitoring public spending and safeguarding public resources. Without a credible and fearless audit institution, parliamentary oversight can become superficial and corruption flourishes unchecked. The role of the Auditor General’s Department is especially important in the present circumstances, when rooting out corruption is a stated priority of the government and a central element of the mandate it received from the electorate at the presidential and parliamentary elections held in 2024.

 So far, the government has taken hitherto unprecedented actions to investigate past corruption involving former government leaders. These actions have caused considerable discomfort among politicians now in the opposition and out of power.  However, a serious lacuna in the government’s anti-corruption arsenal is that the post of Auditor General has been vacant for over six months. No agreement has been reached between the government and the Constitutional Council on the nominations made by the President. On each of the four previous occasions, the nominees of the President have failed to obtain its concurrence.

 The President has once again nominated a senior officer of the Auditor General’s Department whose appointment was earlier declined by the Constitutional Council. The key difference on this occasion is that the composition of the Constitutional Council has changed. The three representatives from civil society are new appointees and may take a different view from their predecessors. The person appointed needs to be someone who is not compromised by long years of association with entrenched interests in the public service and politics. The task ahead for the new Auditor General is formidable. What is required is professional competence combined with moral courage and institutional independence.

 New Opportunity

 By submitting the same nominee to the Constitutional Council, the President is signaling a clear preference and calling it to reconsider its earlier decision in the light of changed circumstances. If the President’s nominee possesses the required professional qualifications, relevant experience, and no substantiated allegations against her, the presumption should lean toward approving the appointment. The Constitutional Council is intended to moderate the President’s authority and not nullify it.

 A consensual, collegial decision would be the best outcome. Confrontational postures may yield temporary political advantage, but they harm public institutions and erode trust. The President and the government carry the democratic mandate of the people; this mandate brings both authority and responsibility. The Constitutional Council plays a vital oversight role, but it does not possess an independent democratic mandate of its own and its legitimacy lies in balanced, principled decision making.

 Sri Lanka’s experience, like that of many democracies, shows that institutions function best when guided by restraint, mutual respect, and a shared commitment to the public good. The erosion of these values elsewhere in the world demonstrates their importance. At this critical moment, reaching a consensus that respects both the President’s mandate and the Constitutional Council’s oversight role would send a powerful message that constitutional governance in Sri Lanka can work as intended.

by Jehan Perera

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Gypsies … flying high

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The present setup

The scene has certainly changed for the Gypsies and today one could consider them as awesome crowd-pullers, with plenty of foreign tours, making up their itinerary.

With the demise of Sunil Perera, music lovers believed that the Gypsies would find the going tough in the music scene as he was their star, and, in fact, Sri Lanka’s number one entertainer/singer,

Even his brother Piyal Perera, who is now in charge of the Gypsies, admitted that after Sunil’s death he was in two minds about continuing with the band.

However, the scene started improving for the Gypsies, and then stepped in Shenal Nishshanka, in December 2022, and that was the turning point,

With Shenal in their lineup, Piyal then decided to continue with the Gypsies, but, he added, “I believe I should check out our progress in the scene…one year at a time.”

The original Gypsies: The five brothers Lal, Nimal, Sunil, Nihal and Piyal

They had success the following year, 2023, and then decided that they continue in 2024, as well, and more success followed.

The year 2025 opened up with plenty of action for the band, including several foreign assignments, and 2026 has already started on an awesome note, with a tour of Australia and New Zealand, which will keep the Gypsies in that part of the world, from February to March.

Shenal has already turned out to be a great crowd puller, and music lovers in Australia and New Zealand can look forward to some top class entertainment from both Shenal and Piyal.

Piyal, who was not much in the spotlight when Sunil was in the scene, is now very much upfront, supporting Shenal, and they do an awesome job on stage … keeping the audience entertained.

Shenal is, in fact, a rocker, who plays the guitar, and is extremely creative on stage with his baila.

‘Api Denna’ Piyal and Shenal

Piyal and Shenal also move into action as a duo ‘Api Denna’ and have even done their duo scene abroad.

Piyal mentioned that the Gypsies will feature a female vocalist during their tour of New Zealand.

“With Monique Wille’s departure from the band, we now operate without a female vocalist, but if a female vocalist is required for certain events, we get a solo female singer involved, as a guest artiste. She does her own thing and we back her, and New Zealand requested for a female vocalist and Dilmi will be doing the needful for us,” said Piyal.

According to Piyal, he originally had plans to end the Gypsies in the year 2027 but with the demand for the Gypsies at a very high level now those plans may not work out, he says.

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