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Cabinet advanced power tariff revision to Oct. – PUCSL Chairman

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New pricing formula to be announced today

By Shamindra Ferdinando

Samagi United Trade Union Force (SUTUF) convener Ananda Palitha yesterday (19) said that the Public Utilities Commission (PUC) and the CEB would announce an increase in power tariffs shortly regardless of a previous decision to restrict the number of electricity revisions to two a year. The CEB implemented revisions in Feb. (61.65% increase) and June (14% decrease) this year.

The trade union is affiliated to the main Opposition Samagi Jana Balawegaya. Palitha said power tariffs would be increased in line with the Wickremesinghe-Rajapaksa government’s response to the IMF conditions.

The trade union activist said that the CEB, which first asked for 22% increase in power tariffs on the basis of revenue losses, on Sept. 26, had brought it down to Rs 17 bn when the PUC sought clarification regarding the data submitted by the CEB. “Now, the CEB is asking for a 10 percent increase,” Palitha said, adding that the increase would cause severe pressure on the already struggling economy.

A PUC spokesperson told The Island that the increase would be announced today.

Responding to The Island query, Palitha said that the assurance on two power tariff revisions annually had been given by President Ranil Wickremesinghe and Power and Energy Minister Kanchana Wijesekera in January.

Claiming that he had obtained the latest official data, Palitha questioned the failure on the part of the CEB to recover unpaid bills amounting to Rs 65 bn. The former UNP trade union leader challenged the CEB to release the names of those who hadn’t paid massive bills but continued to receive uninterrupted services. “Among the culprits are politicians, politically influential persons and major companies,” Palitha said, adding that those who settled their bills religiously with difficulty were being further burdened.

However, PUC Chairman Prof. Manjula Fernando recently declared that the CEB had made two proposals regarding third price revision this year in line with a cabinet decision. Fernando said that though tariff proposals could be submitted in January and July and the next revision scheduled for January next year, the Cabinet advanced the tariff revision to Oct., this year.

Commenting on the submissions received by the PUC on Oct 18, Palitha said that the people had lost faith in the public sector due to the deterioration of state finance as repeatedly underscored by statements issued on the proceedings of parliamentary watchdog committees.

Palitha said that regardless of assurances given since the change of government in July last year absolutely nothing has been done to discipline the CEB which remained one of the most corrupt state institutions. There couldn’t be a better example than the recent Supreme Court directive to CEB to identify and take appropriate action in respect of officials responsible for blocking a solar power project proposed by a private company that had fulfilled all the required conditions.

The three judge bench comprising Justices Yasantha Kodagoda, Gamini Amarasekera and Dileep Nawaz found fault with the first respondent CEB and the second respondent Sri Lanka Sustainable Energy Authority (SLSEA) responsible for their failure to mobilise new generation projects for the production of electricity using the abundant renewable energy resources in the country.

Pointing out that Vavuniya Solar Power (Private) Limited had informed the Supreme Court that it had applied to the SLSEA in 2012 for approval to commission and operate a solar-powered electricity generation plant in Vavuniya, Palitha said that the country paid a very heavy price for the failure on the part of successive governments to reign in the CEB.



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Plans for 2026 on the journey towards a digital economy Under President’s review

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A discussion to review the progress of projects implemented under the Ministry of Digital Economy in 2025 and to examine new projects planned to be implemented under the 2026 budgetary allocations was held on Monday (19) morning  at the Presidential Secretariat under the patronage of the Minister of Digital Economy, President Anura Kumara Dissanayake.

Special attention was paid to the plans and progress of programmes to promote a cashless economy.

Accordingly, an extensive discussion was held on the progress of projects planned by the Government to promote a cashless economy in Sri Lanka, including the digitalisation of government institutions, promotion of QR transactions, establishment of a Cloud infrastructure centre, a national programme to provide high-speed broadband facilities, provision of single-window facilities, the digital identity card project and the project to digitalise payment of traffic spot fines.

Noting that much of the economic activity of rural communities remains in the informal sector, the President emphasised the need to formally document these activities and stressed that this is essential when formulating future economic and development plans.

The performance, progress and future plans of institutions under the Ministry of Digital Economy, including Sri Lanka CERT, the Data Protection Authority and the Telecommunications Regulatory Commission (TRC), were also reviewed.

The current status and new recruitments of the GovTech institution, established to implement the Government’s digitalisation programme, were also discussed.

Deputy Minister of Digital Economy, Eranga Weeraratne, Secretary to the President, Dr. Nandika Sanath Kumanayake, Senior Presidential Adviser on Digital Economy, Dr. Hans Wijayasuriya, Senior Additional Secretary to the President, Roshan Gamage, Secretary to the Ministry of Digital Economy, Varuna Sri Dhanapala, senior officials of the Ministry and heads of institutions under the Ministry also participated in the discussion.

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Power sector reforms: CEB trade unions threaten strike

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A simmering confrontation between the government and the powerful Ceylon Electricity Board (CEB) trade unions intensified yesterday, with the latter signalling continued industrial action, even as authorities moved decisively to prevent any disruption to electricity supply.

The dispute centres on the government’s determination to restructure and unbundle the CEB under amendments to the Electricity Act, a reform drive officials describe as unavoidable to curb losses, strengthen governance and stabilise the national power sector. This has also been a long-standing demand of international donors, particularly the International Monetary Fund and the World Bank.

Some 24 CEB unions, including powerful engineers’ and workers’ organisations, have rejected the move, warning that the proposed restructuring could weaken institutional coordination, undermine job security and eventually place additional pressure on consumers.

Union representatives said work-to-rule campaigns and other limited forms of industrial action would continue, despite electricity services being declared an essential service — a legal measure that effectively curtails full-scale strike action.

“These reforms are being imposed without proper consultation. Decisions taken in haste could have serious consequences for grid stability and public confidence,” a senior union official told The Island.

The government, however, has adopted a firm posture, cancelling all categories of leave for CEB staff and directing management to ensure uninterrupted operations across generation, transmission and distribution.

A senior official at the Power and Energy Ministry said the administration would not allow labour unrest to jeopardise electricity supply, stressing that energy security was central to economic recovery.

“Electricity is a critical public service. Any attempt to disrupt supply will be dealt with firmly,” the official said.

Engineers’ unions have separately cautioned that restructuring without a clearly articulated technical and regulatory framework could compromise long-term planning and system reliability, though they have stopped short of calling for an outright shutdown.

Despite ongoing discussions between union leaders, CEB management and government representatives, there is no indication of an early resolution, raising the prospect of a prolonged standoff at one of the country’s most strategically important state institutions.

The dispute unfolds amid Sri Lanka’s IMF-backed reform programme, under which state-owned enterprises — particularly in the energy sector — are under increasing pressure to reduce losses and ease the burden on public finances.

Analysts warn that sustained unrest at the CEB could complicate reform timelines and dent investor confidence, even as the government seeks to signal policy resolve.

A retired CEB top official said: “For now, while major strike action remains legally constrained, the confrontation has once again placed the power sector at the centre of national debate, with consumers and businesses watching closely for any fallout.”

By Ifham Nizam ✍️

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Dumbara Prison being expanded to accommodate nearly 30,000

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Harshana

Of over 37,000 held in country’s prisons, nearly 27,000 are suspects

Dumbara Prison built to accommodate 699 persons is now being expanded to hold 2,900 persons. At the moment, Dumbara Prison holds 2,246 men and women – a staggering 1,547 individuals more than its maximum capacity. Of the 2,246 persons held there, 107 are females.

This was revealed when Justice and National Integration Minister Harshana Nanayakkara responded to a query posed by Samagi Jana Balawegaya (SJB) lawmaker Chamindrani Kiriella, in Parliament yesterday (20).

The Kandy district SJB MP raised a spate of questions regarding the current status of prisons with the focus on how the NPP government intended to address the growing congestion within prisons.

The Minister explained that a major building project was now underway to expand Dumbara Prison, situated at Pallekelle, to accommodate 2,500 men and 400 women.

According to Attorney-at-Law Nanayakkara, the proposed Dumbara Prison complex would include 102 housing units for prison personnel.

The Parliament was told that the entire project would cost the taxpayer a staggering Rs 4.3 bn and that Engineering Consultants (Pvt.) Limited (ECL) was responsible for planning and supervision.

The project was progressing and by January 4, 2026, a substantial part of the complex had been built and 2146 inmates already accommodated.

The Minister said that the facility was to accommodate those who were previously held at Nuwara and Bogambara Prisons.

Of some 37,761 held at various prisons, about 27,000 were suspects, the Parliament was told.

MP Kiriella urged Minister Nanayakkara to consider an arrangement, similar to that of South Africa where those languishing in prisons, due to the inability to pay fines, received the required financial assistance from a special fund created for that purpose.

While appreciating the SJB’ers proposal, Minister Nanayakkara said that during 2025, 17,000 persons hadn’t been remanded as part of the government response to overcome overcrowding in prisons. They were being held under supervision, the Minister said.

Minister Nanayakkara said that the primary reason for the congestion was the significant number of those remanded on narcotics-related charges. Of the over 37,000 held in prisons about 30,000 were those who had been arrested on narcotics-related offences, the Minister said. According to the Minister, delay on the part of the Government Analyst’s Department in furnishing relevant reports had created a crisis and action was being taken to recruit 82 persons to that Department. The idea was to establish a system to secure GA reports within three months, the Minister said.

By Shamindra Ferdinando ✍️

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