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All CEB TUs join forces to fight fresh power tariff hikes

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Street protests likely

By Ifham Nizam

All trade unions of the Ceylon Electricity Board (CEB) are to join hands this week to oppose the government move to impose fresh tariff hikes.

Unionists said the government was bent on going ahead with its plan to introduce another tariff hike of 30 percent in January, followed by a 40 percent increase in July in 2023.

CEB Joint Trade Union Alliance Convener, Ranjan Jayalal, told The Island that the Minister of Power and Energy had been expected to present a proposal, on Monday, to increase the tariff. However, he had not done so, probably because of the pressure from the unions, Jayalal said. However, the plan to increase tariffs was on track, he added.

“If the Cabinet approves the proposal, the entire CEB workforce with the backing of the masses will take to the streets opposing the government’s unjust tariff increase, at a time the people are finding it difficult to have a decent meal,” he said.

The trade unionist also mentioned that they were opposing the government decision to restructure the CEB.

The Committee appointed to look into structural reforms has recommended the division of the debt-ridden CEB into 14 companies with a 15th entity to take over any residual functions and activities.

The nine-member committee said that to attract investors into the power and energy sector, the government had to “move away from practices, such as accepting unsolicited proposals towards a procurement framework that is transparent, fair and competitive.”

According to Energy Minister Kanchana Wijesekera the proposed tariff hike aimed to reduce losses.

The approved tariff hikes were expected to raise some Rs. 500 billion in additional revenue including LECO sales, which represents only a 75-percent increase of profit, compared to the needed 82.4 percent.

A 75 percent tariff hike granted by the Public Utilities Commission, in August 2022, and implemented with effect from October 2022, was not enough to cover costs, and the CEB is still making losses, the CEB officials said.

The Island recently reported that the profit of the CEB, in October 2022, was Rs. 2.84 billion, with expenditure at Rs. 32.98 billion, and revenue at Rs. 35.82 billion.

Tariff increases are expected to cover the past losses due to years of selling power at subsidised rates, inefficient operations, corruption and economic crisis, Power and Energy Minister, Kanchana Wijesekara, said, adding that a new tariff scheme had been introduced for low income households.

Chairman of the National Council sub-committee on identifying short and medium-term programmes related to economic stabilisation, former Power and Energy Minister, Patali Champika Ranawake, who is an electrical engineer by profession, said that the CEB’s submission on reasons behind the tariff hike and costs incurred by them were not acceptable.



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Sri Lanka, India caught in US-Iran ship crisis

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By Shamindra Ferdinando

Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.

Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).

The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.

The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.

Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.

The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.

The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR

Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.

SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.

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Namal further remanded

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MP Namal Rajapaksa being brought to the Colombo Magistrate’s Court yesterday. Pic by Nishan S Priyantha

MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).

Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.

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IMF projects Lankan economic growth to moderate amidst mounting global uncertainties

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Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.

Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.

Unemployment is expected to remain steady at 3.9% throughout the forecast period.

The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.

Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.

The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.

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