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.”
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“We hope that first day of school becomes a cherished memory in the lives of our beloved children” – PM
Prime Minister and Minister of Education, Higher Education and Vocational Education Dr Harini Amarasuriya said that she hoped that the first day of school becomes a beautiful and lasting memory in the lives of our beloved children as they take the important step from their homes and parents into the care and guidance of their teachers and wished them every sucess in the journey ahead.
The PM’s message:
“Dear children and parents,
We hope that the first day of school becomes a cherished memory in the lives of our children. With this in mind, we are making every effort to improve school environments and strengthen the teaching–learning process, so that children can experience their school years in a safe, joyful, and meaningful manner.
We are committed to reducing the burden of heavy schoolbags, while ensuring that children continue to develop the knowledge, attitudes, and skills needed for their future and for their eventual entry into the workforce.
Dear Parents, our goal is to provide every child with a rich education in a prosperous and just society. We firmly believe that a child’s educational opportunities should not be determined by the economic circumstances of their family, and that no child should be excluded from education. Accordingly, the Government has taken responsibility for putting in place the necessary measures to guarantee equal access to education for every child. We value the constructive ideas and suggestions of all stakeholders as we work towards this shared objective.
We are committed to engaging with these ideas openly and constructively, and to making the learning experiences of children who grow through play, movement, and curiosity more practical, meaningful, and engaging, while ensuring that classrooms remain spaces of happiness and encouragement.
My dear children, as you step beyond the comfort of your mother’s embrace and place your trust in your teachers and parents, I wish you success, confidence, and fulfilment in all that lies ahead.
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The National Strategic Action Plan to monitor and combat human trafficking (2026-2030) officially launched
The Prime Minister Dr. Harini Amarasuriya participated in the official launch of the National Strategic Action Plan to monitor and combat human trafficking (2026-2030) held on 28th of January at the Cinnamon Life Hotel, Colombo. The event was jointly organized by the Ministry of Defence, National Anti Human Trafficking Task Force ( NAHTTF), International Organization for Migration (IOM).
This five-year Action Plan was unveiled under the leadership of the Ministry of Defence, in its capacity as Chair of the NAHTTF and with the technical support from the International Organization for Migration (IOM). The National Strategic Action Plan 2026-2030 establishes a unified national framework to prevent human trafficking, protect and assist victims, strengthen law enforcement responses, and enhance accountability.
Addressing the event, the Prime Minister reaffirmed the Government’s commitment to strengthening national efforts to prevent and address human trafficking and stated that the Action Plan must transcend its symbolic launch into concrete, coordinated, and sustained implementation.
The Prime Minister also noted that the launch of the National Strategic Action Plan is timely, as it operationalizes the four internationally recognized pillars of the anti-trafficking framework namely prevention, protection, prosecution, and partnership.
The Prime Minister further stated,
“Caring for trafficking survivors in Sri Lanka requires a holistic, gender-sensitive, and survivor-centered approach that addresses both immediate protection and long-term recovery. This includes safe shelter, medical care, and trauma-informed psychological support, with particular attention to women and girls who experience more severe and gendered forms of violence, alongside legal assistance, economic empowerment, and skills development to prevent re-trafficking.
Human trafficking is a structural and social challenge that requires sustained, multi-sectoral action. Ministries and government agencies must embed anti-trafficking priorities into their core strategies and day-to-day operations, ensuring institutional integration and professional accountability”.
The event was attended by Parinda Ranasinghe Jnr, PC, Attorney General of the Democratic Socialist Republic of Sri Lanka, the Secretary to the Ministry of Defence and Chair of the NAHTTF, Air Vice Marshal Sampath Thuyacontha; and Kristin Parco, IOM Chief of Mission in Sri Lanka and Maldives. Members of the NAHTTF representing 23 key government entities, along with representatives of the diplomatic community, United Nations entities and Civil Society Organizations (CSOs).
(Prime Minister’s Media Division)
News
No changes to IMF agreement despite Cyclone Ditwah impact
The International Monetary Fund (IMF) has declared that the Extended Fund Facility (EFF) wouldn’t be amended in view of the impact of Cyclone Ditwah.
The IMF delegation, at the end of its visit to Sri Lanka, informed President Anura Kumara Dissanayake of its decision during a meeting at the Presidential Secretariat yesterday (28). The IMF delegation included Director of the Asia and Pacific Department Krishna Srinivasan, Deputy Director for Asia and the Pacific Sanjaya Panth, Mission Chief Evan Papageorgiou, and Resident Representative Martha Woldemichael.
The 48-month arrangement, approved on 20 March, 2023, during Ranil Wickremesinghe’s tenure as the President, is for SDR 2.286 billion (approximately US$3 billion). In terms of the agreement, repayment of debt has to be resumed in 2028. Sri Lanka unilaterally suspended debt repayment in April 2022.
Close on the heels of Cyclone Ditwah, the main Opposition party, the Samagi Jana Balawegaya (SJB), repeatedly pressed the government to request the IMF to amend the agreement.
The Presidential Media Division ( PMD) quoted the IMF delegation as having said that the strong fiscal discipline maintained by the government over the past year had been a key factor in addressing the challenges caused by Cyclone Ditwah. They said that the government’s ability to present a supplementary estimate of Rs. 500 billion was made possible by a surplus in the Treasury.
The Government of Sri Lanka was represented by Minister of Labour and Deputy Minister of Economic Development Dr. Anil Jayantha Fernando, Secretary to the Ministry of Finance Dr. Harshana Suriyapperuma, Governor of the Central Bank Dr. Nandalal Weerasinghe, Senior Economic Adviser to the President Duminda Hulangamuwa, along with several others.
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