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.”
News
Justice Minister hits back at CLA
By Saman Indrajith
Justice Minister Harshana Nanayakkara yesterday told Parliament that the Commonwealth Lawyers’ Association (CLA) was not an organisation officially recognised or registered under the Commonwealth Secretariat, but a fee-levying private association.
Responding to a question by Opposition and SJB Leader Sajith Premadasa on why he had failed to meet CLA representatives, who recently visited Sri Lanka, Nanayakkara said he had offered them a date and time for a meeting, but they had been unable to attend.
The Commonwealth Lawyers Association (CLA) has questioned procedural fairness and other matters of concern in a report that deals with the Supreme Court hearing petitions against the 22nd Amendment to the Constitution. Among the issues raised by CLA President Steven Thiru, is the composition of the five-member bench.
The Minister said the CLA representatives subsequently requested another date, but he had already scheduled official engagements for the proposed day.
Nanayakkara said it was, therefore, incorrect to claim that he had refused to meet the CLA delegation.
“The CLA is not an official body accepted or admitted into the Commonwealth of countries. It is a private club whose members pay fees for membership,” he said.
However, the Minister said he was not suggesting that the organisation was “a bad organisation”, adding that the accuracy of several statements made by CLA members during their visit to Sri Lanka had yet to be established.
Nanayakkara identified lawyer Upul Jayasuriya as the CLA’s local representative and said Jayasuriya had sought a meeting with him.
“I gave him the opportunity, but he came up with the excuse that he could not make it as he was not in Colombo. Therefore, it is wrong to state that I did not give them time,” the Minister said.
News
First visit by an Indian Defence Minister since IPKF deployment
By Shamindra Ferdinando
Indian Defence Minister Rajnath Singh is in Colombo on a three-day official visit, the first by an Indian Defence Minister since the 1988 visit by K.C. Pant, during Rajiv Gandhi’s tenure as the Prime Minister.
The Indian Defence Ministry declared that the visit would further strengthen the traditionally strong and friendly bilateral relations in mutually beneficial areas, including a strong maritime and defence partnership.
The visit takes place in the wake of Sri Lanka and India signing seven MoUs, including one on defence, in April 2025. Communist Party General Secretary Dr. G. Weerasinghe told The Island that the government should set the record straight regarding the rapidly developing military relations with the US and India. The acquisition of Colombo Dockyard Ltd., by Indian Defence Ministry-run Mazagon Dock Shipbuilders Limited, soon after the finalisation of MoUs, underscored New Delhi’s strategy, Dr. Weerasinghe said. Responding to another query, Dr. Weerasinghe said that the government should take this opportunity to discuss the Tamil Nadu fishing fleet poaching on Sri Lankan waters.
Pant visited during the Indian Army operations against the Liberation Tigers of Tamil Eelam (LTTE) in the Northern and Eastern Provinces here, while Pranab Mukherjee visited Colombo, in August 2005, to pay last respects to assassinated Foreign Minister Lakshman Kadirgamar.
Indian and Sri Lanka governments said that the visit was meant to strengthen cooperation between the two neighbouring countries in the fields of defence, economic engagement, maritime affairs and regional security.
An Indian warship arrived at the Colombo harbour ahead of the Defence Minister’s visit, reminiscent of old gunboat diplomacy. INS Udayagiri’s visit coincided with the Defence Minister’s visit. The Defence Minister’s delegation included senior officials from Ministry of External Affairs.
During the visit, the Indian Defence Minister is scheduled to hold high-level discussions with President Anura Kumara Dissanayake who also holds the Defence portfolio, Prime Minister Dr. Harini Amarasuriya and Defence Secretary Sampath Thuyacontha. He is also expected to meet members of the Indian community, residing in Colombo.
Dr. Weerasinghe said that the NPP government conveniently extended the moratorium on foreign research vessels imposed during Ranil Wickremesinghe’s tenure in 2024. The CP official said that the media alleged that that decision was taken at the behest of the US and India but nearly two years after the last presidential election the ban remains.
News
“I’m not a war criminal, I fought for my country”: Shavendra Silva
Former Army Commander and Chief of Defence Staff General Shavendra Silva has rejected allegations of wrongdoing during the final stages of war against the LTTE, declaring his readiness to answer specific accusations against him and questioning the basis on which he has been sanctioned internationally.
In an interview with India-based “Impact Stories,” retired General Silva said the Sri Lankan military had fought the Liberation Tigers of Tamil Eelam (LTTE) professionally and had sought to minimise civilian casualties during the final military offensive.
Silva, who commanded the Army’s 58 Division during the final phase of the war in 2009, said he had repeatedly sought an explanation for sanctions imposed on him.
“I have been sanctioned by the United States of America, and I was sanctioned recently by the United Kingdom. For what? I have been asking, tell me what I have done wrong,” Silva queried.
“I’m not a war criminal. I fought for my country,” he added, arguing that if he had violated military law, he should have been investigated and punished under the appropriate mechanisms.
The United States imposed travel restrictions on Silva and his immediate family in 2020, citing what it described as credible information of his involvement, through command responsibility, in alleged gross violations of human rights during the final phase of the war. The United Kingdom later imposed sanctions on Silva in 2025 over alleged human rights violations during the conflict.
Silva rejected allegations that the military deliberately targeted civilians, while acknowledging that civilian deaths could have occurred during the fighting.
“There would have been deaths of civilians, but those are not intentional,” he said, adding that military planning sought to minimise civilian casualties and that targets were avoided when civilians were observed nearby.
Recalling the final stages of the offensive, Silva said his division rescued more than 123,000 civilians and that more than 75% of, approximately 12,000 LTTE members, who surrendered at the end of the conflict, had surrendered to his division.
He said surrendered LTTE members were subsequently rehabilitated and reintegrated into society, arguing that this demonstrated the military’s approach toward those who laid down their weapons.
Silva also recalled an “encirclement operation” in which he said a large number of LTTE bodies were recovered. He said a senior LTTE northern commander was among those found dead and was dressed in civilian clothes while carrying a weapon.
“One could say a civilian was killed. No, he was the LTTE northern commander,” Silva said, arguing that combatants wearing civilian clothing could subsequently be counted as civilian casualties.
Silva also accused the LTTE of using civilians as human shields, preventing people from leaving areas under its control and positioning military assets near civilian locations during the final stages of the conflict.
He criticised successive Sri Lankan governments for what he described as a failure to effectively present the military’s account of the war internationally, saying this had allowed allegations against Sri Lankan troops to gain traction overseas.
Silva called on governments and international organisations making allegations against Sri Lankan forces to engage directly with those accused and present specific incidents for explanation.
“Come to a dialogue,” he said. “Tell us, ‘You all had done this on this particular day, at this particular time,’ so that we can clarify.”
“If we have done something, we will accept,” he added.
Silva also rejected claims that the LTTE represented the wider Tamil community, saying grievances should be addressed politically rather than through armed violence. He cited the LTTE’s assassinations, suicide attacks and forced recruitment while arguing that entire ethnic or religious communities should not be blamed for the actions of the organisation or its supporters.
The former Army Commander said the military’s objective had been to defeat the LTTE and free civilians from its control, while maintaining that Sri Lankan troops did not intentionally commit abuses against civilians.
Sri Lanka’s final military offensive remains the subject of longstanding international scrutiny. United Nations investigations and international human rights organisations have alleged serious violations of international humanitarian and human rights law by both government forces and the LTTE during the final stages of the conflict. Sri Lankan military leaders, including Silva, have repeatedly rejected allegations that government forces deliberately targeted civilians.
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