News
Biomass power producer forced to shut due to CEB’s unpaid arrears
Company saves country USD 3 mn. Annually
by Ifham Nizam
An independent power supplier to Sri Lanka’s national grid whose supplies could annually save the country Rs 450 Million in energy costs and USD 3 million in foreign exchange has shut down because of huge unpaid arrears owed to it by the Ceylon Electricity Board and because of the very large recent increases in the cost of wood fuel.
Mirigama Dendro Power (MDP) is a 4 MW biomass plant which provides 3.8 MW of power to Sri Lanka’s national grid annually.
“CEB has not paid us from December last year and owes us Rs 194 million” said MDP Chairman Dr. Romesh Bandaranaike.
The price of fuelwood used by the Plant has increased by over 75% because of the recent exchange rate changes and the price increases in diesel, which has prompted many industries to change the fuel used by their boilers, which supply process steam, from diesel to wood.
“Raw wood has increased from Rs 4/kg. to more than Rs 7/kg and wood chips from Rs 7/kg to over Rs 11/kg. At these prices, it is not economical to run the plant. It will only be viable if there is a substantial increase in what we are paid for the energy we supply to the CEB,” Bandaranaike said.
“We need a minimum increase of Rs 7-8 per kWh from the present Rs 26.65 we are paid if we are to meet our costs and service our bank loans.”
He adds: “The tariff formula in our agreement with the CEB is “backward looking with five year past averages.” It was never designed to handle situations like the present with massive inflation.
The Rs 34-35 per kWh that Dr. Bandaranaike has requested is still substantially lower than what it costs the CEB to generate the same energy, which is Rs 41 per kWh using coal and over Rs 70 per kWh using diesel according to him. The plant can generate 28,000,000 kWh annually.
The savings to the CEB by purchasing power from the plant at Rs 34/kWh rather than generating the power itself at an average cost of Rs 50 per kWh would be Rs. 448 million per year.
Since the plant uses local fuel rather than imported coal or diesel, the foreign exchange savings would be in excess of USD three million, if the average fuel cost per kWh for the CEB’s plants whose power will be replaced is Rs 40.
“We owe the banks Rs 610 million in project loans and Rs 100 million in overdrafts. The collateral for these loans is the plant assets. We have asked the banks to take over our plant because we cannot operate it any more,” Bandaranaike said.
“The shareholders are resigned to losing their equity investment which was in excess of Rs 500 million. The banks will also lose their loan funds because no one will want to take over and run the Plant even if it is given at Rs 1.”
“It is a shame that a Plant which can generate power cheaper than the CEB’s coal power plants and also save USD three million in foreign exchange each year will have to be sold for scrap.”
He says that given his long experience with dealing with the CEB – he used to be the CEO of Sri Lanka’s largest small hydro power developer – there is little hope in approaching the CEB to request a revision in their present tariff and expedite payments.
Repeated requests to the CEB for payments of even a portion of their arrears have also fallen on deaf ears.
“They have so many other problems with power cuts due to fuel unavailability, consumer tariffs substantially lower than costs which result in massive losses, and so on. We are a tiny part of the solution and the CEB has no time for us.”
He says that MDP will make one last attempt to save their plant by going along with the banks to the Public Utility Commission and see if they can make “sanity prevail.”
Latest News
Advisory for severe lightning for the Western and Sabaragamuwa provinces and Galle and Matara districts
Advisory for Severe Lightning Issued by the Natural Hazards Early Warning Centre at 12.15 p.m. 06 December 2025 valid for the period until 11.00 p.m. 06 December 2025.
The public are being cautioned that thundershowers accompanied with severe lightning are likely to occur at some places in the Western and Sabaragamuwa provinces and in Galle and Matara districts.
There may be temporary localized strong winds during thundershowers.
The General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.
ACTION REQUIRED:
The Department of Meteorology advises that people should:
Seek shelter, preferably indoors and never under trees.
Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.
Avoid using wired telephones and connected electric appliances during thunderstorms.
Avoid using open vehicles, such as bicycles, tractors and boats etc.
Beware of fallen trees and power lines.
For emergency assistance contact the local disaster management authorities.
News
Government briefs Diplomatic Community on recovery progress
A special briefing for the diplomatic community in Sri Lanka was held on 4 December at the Ministry of Foreign Affairs, Foreign Employment and Tourism, chaired by Prime Minister Dr. Harini Amarasuriya together with the Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath. Senior government officials, including representatives of the Disaster Management Centre (DMC) and the Sri Lanka Tourism Development Authority (SLTDA), also participated.
Opening the session, Prime Minister Dr. Harini Amarasuriya expressed her gratitude to the diplomatic community for their immediate support and solidarity following the recent floods and landslides. She noted that Sri Lanka had endured one of the most severe disasters in recent years, but the resilience of the people and the coordinated efforts of government agencies had enabled a rapid response and significant progress in relief operations. She confirmed that not a single tourist has been reported harmed during the disaster and noted that the previously inaccessible areas are now reachable. Massive cleanup and decontamination operations are underway to ensure that lands and public spaces are safe for return, and communications have been restored in the affected areas.
The Prime Minister emphasized that relief, evacuation, and emergency assistance were carried out with the collective effort of the tri-forces, police, public officers, health workers, volunteers, and local authorities. She acknowledged the continuing challenges, including the restoration of infrastructure, resettlement needs, and long-term disaster-mitigation work, and welcomed the technical, humanitarian, and financial support offered by partner countries.
Maj. Gen. Sampath Kotuwegoda (Retd), Director General of the Disaster Management Centre, delivered a detailed presentation on the current status of the disaster, including the number of affected families, evacuation centres, damage assessments, and the ongoing coordination with international agencies for recovery planning. The cyclone affected almost the entire country, with 22 districts severely impacted. Some locations recorded up to 540 mm of rainfall and winds of up to 70 km/h, causing widespread infrastructure damage. Early assessments indicate that 2.3 million people were exposed to flooding, with 1.8 million people directly affected on the ground and 1.1 million hectares of land impacted. The assessment also identified 40,152 pregnant women among those affected, who have been prioritized for support. He also highlighted areas where further technical cooperation, such as early-warning systems, mapping capabilities, and climate-response technologies would be valuable.
Buddhika Hewawasam, Chairman of the Sri Lanka Tourism Development Authority, briefed the diplomatic community on the impact of the disaster on the tourism sector. He reassured attendees that major tourism zones remain operational, safety assessments are underway, and contingency measures have been activated to support visitors and protect the industry during the upcoming peak season. The Chairman of the Hotel Association of Sri Lanka Ashoka Hettigoda confirmed that the Coastal and resort hotels from Maravila to Passikudah are operating, with many reporting 60–65 percent occupancy; the hotels in Nuwara Eliya are partially operational. He made an appeal that the best assistance that the international community can give to Sri Lanka is the continued support provided through tourism.
Several diplomats conveyed their condolences to affected communities and reaffirmed their governments’ readiness to assist Sri Lanka in both immediate relief efforts and long-term rebuilding. They expressed appreciation for the government’s transparent engagement and the coordinated approach to managing the crisis.
Prime Minister thanked the diplomats for their continued cooperation and underscored the government’s commitment to ensuring an effective and inclusive recovery. She stressed that strengthening disaster preparedness, climate resilience, and institutional capacity will be central to Sri Lanka’s national development agenda moving forward. Deputy Minister of Foreign Affairs, Foreign Employment and Tourism, Arun Hemachandra, Secretary to the Prime Minister, Pradeep Saputhanthri, and Secretary to the Ministry of Foreign Affairs, Ms. Aruni Ranaraja, also attended the meeting.


[Prime Minister’s Media Division]
News
All parties have agreed to recruit Development Officers into the teaching service through a competitive examination – PM
Addressing Parliament on Friday (05), the Prime Minister stated that, in accordance with the Supreme Court decision, the recommendations issued by the Public Service Commission, and the Sri Lanka Teachers’ Service Minute, all parties have agreed to recruit teachers through a competitive examination. The Prime Minister further noted that during the second phase of the recruitment process, the Development Officers currently serving in schools will be given preference during the interviews.
Addressing further, the Prime Minister stated,
“In compliance with the final order of the Supreme Court and the provisions of the Sri Lanka Teachers’ Service Minute, the Development Officers will be given the opportunity to join the Sri Lanka Teachers’ Service.
It has been decided to revise the maximum age limit of 40 years, as specified in the examination notification for applicants, to 45 years for this instance only”.
The Prime Minister further stated that, in accordance with the Supreme Court decision, arrangements have been taken to revise the age limits for graduates employed in the public service and graduates not employed in the public service, and to conduct separate examinations accordingly, in order to recruit teachers to Grade 3. i (a) of the Teachers’ Service to fill the available vacancies.
[Prime Minister’s Media Division]
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