News
Electricity tariff reduction: 20% inadequate says consumers
By Anuradha Hiripitiyage
The government’s announcement of a 20% reduction in electricity tariffs has been criticized as inadequate by Sanjeewa Dhammika, Secretary of the Electricity Consumers’ Association. Speaking at a press conference in Colombo on Friday, Dhammika argued that the reduction should have been at least 30%, given that the Ceylon Electricity Board (CEB) reported profits of Rs. 200 billion over the past two years.
Addressing the media following the Public Utilities Commission of Sri Lanka’s (PUCSL) announcement of revised tariffs earlier in the day, Dhammika raised concerns over the process used to determine the reduction. He revealed that the Auditor General had previously sent a letter to the CEB, dated November 30, highlighting inaccuracies in the data provided for tariff adjustments.
“These concerns seem to have been overlooked in the current tariff revision,” Dhammika said.
He further claimed that if the PUCSL had properly analyzed the data, a 30% tariff reduction could have been implemented. Such a move, he suggested, would have not only eased the financial burden on the public but also contributed to the country’s economic recovery.
Dhammika also accused the PUCSL of failing to take legal action against CEB officials responsible for providing incorrect data, despite having the authority to do so. Additionally, he criticized the absence of Ministers Nalinda Jayatissa and Wasantha Samarasinghe, who typically participate in public consultations on tariff adjustments.
“Did they stay away because they saw the possibility of a 30% reduction and wanted to avoid supporting it?” he questioned.
The association called for greater transparency and accountability in tariff adjustments, urging the government to act in the best interest of the public.
Earlier in the day the PUCSL said that higher projected surplus of 44 billion rupees helped for 20 percent reduction electricity tariffs from Jan 17, against a proposal by the CEB to maintain the same price.
The PUCSL has the authority to decide the prices, as per law. The CEB’s request to maintain the same tariffs for the first six months of 2025 comes with its projection of only 2.3 billion rupee surplus in the period.
“But the PUCSL’s assessment showed there could be a 44 billion surplus in the first six months and we decided that the benefit of this surplus should go to the public,” Jayanath Herath, director at the PUCSL’s Communication Unit, told reporters at a media briefing on Friday.
News
AKD warns of far reaching economic consequences of Middle East war
President Anura Kumara Dissanayake yesterday called for an immediate and peaceful resolution of the escalating Middle East conflict, warning that the crisis could have far-reaching repercussions on the global economy, including Sri Lanka.
Addressing Parliament, the President stressed that no military conflict benefited humanity, particularly at a time when destructive military technologies were rapidly advancing.
“Any military conflict does not create a favourable situation for any group of people,” he said, urging all parties to make urgent commitments towards peace. “As Sri Lanka, our position is that all parties involved in this war must, as soon as possible, take steps toward a peaceful world.”
He cautioned that Sri Lanka could not remain insulated from the fallout from the conflict, noting that disruptions to global oil and gas supplies, threats to migrant workers in the Middle East, and potential shocks to tourism, remittances, shipping and aviation were real concerns.
A national programme was being formulated to mitigate the impact, he said, adding that its success would hinge on broader international efforts to restore stability, the President said.
Acknowledging public anxiety shaped by past economic hardships, President Dissanayake said social stability could not be ensured through rhetoric alone but required tangible guarantees that citizens would not face another crisis.
While noting that the government had successfully navigated multiple challenges since assuming office, he described the Middle East situation as distinct due to the uncertainty surrounding its duration and outcome.
The government, he said, was closely monitoring developments. The Central Bank had conducted a review with a report on the likely economic impact expected shortly. The Ministry of Finance is also preparing an assessment of the potential effects on public life, alongside measures to ensure the uninterrupted provision of essential services locally and for Sri Lankans overseas.
“The primary responsibility for finding a path out of the crisis rests with the Government,” he said, calling on Parliament and the public to collectively confront the challenge under a unified national plan.
Providing a detailed account of the country’s energy reserves, the President said storage capacity rather than supply remained the key constraint. Excluding the Indian Oil Corporation tanks in Trincomalee, total storage capacity at Kolonnawa and Muthurajawela stands at approximately 150,000 metric tons.
Diesel stocks were currently sufficient for 33 days, with refining contributing around 1,800 metric tons daily. Petrol reserves will last 27 days, with a 35,000 metric ton shipment due on March 7 or 8 expected to extend availability to around 40 days.
Aviation fuel stocks are adequate for 49 days, supported by both daily refining and imports. Scheduled shipments include vessels from RM Parks on March 14, Sinopec on March 17, IOC on March 21 and the Ceylon Petroleum Corporation on March 28.
Crude oil supplies were sufficient to operate the refinery for 26 days, with an additional shipment expected to extend operations by a further 18 days, the President said.
“Because of this, there is no crisis regarding oil,” the President assured Parliament.
News
Pope invited to visit Sri Lanka
President Anura Kumara Dissanayake has invited His Holiness Pope Leo XIV to visit Sri Lanka.
The official invitation was handed over by Minister Bimal Ratnayaka to the Vatican’s Under Secretary for Relations with the States, at the Vatican, yesterday, during the Minister’s official visit to Italy, the President’s Media Division said.
News
New Tourism Act to strengthen legal action against visa violators
The government is in the process of drafting a new Tourism Act to address legal loopholes that currently prevent the prosecution of foreign nationals who engage in unauthorised activities while on tourist visas. Speaking at a certificate awarding ceremony for the Vocational Initiative for Sustainable Ambassadors in Tourism (VISA) project at the Royal Kandyan Hotel, Suranjith Wavita, a member of the Presidential Task Force for Tourism Development, stated that the current Tourism Act No. 38 of 2005 was flawed as it does not prescribe specific punishments, beyond deportation, for such offenders.
Wavita highlighted that a significant number of foreigners, including Chinese nationals, had been deported over the past three months for working as illegal tour guides and engaging in various trading activities. He explained that due to a shortage of Chinese-speaking local guides, travel agents often brought in “Tour Leaders” from abroad on tourist visas, which was a serious violation. The proposed new legislation aimed to empower the Tourist Police Division to arrest and produce such violators, ensuring stricter enforcement than mere deportation.
The new Act is being formulated by a committee of experts, based on various proposals and ideas to make it mandatory for anyone involved in the tourism industry to be registered and properly trained. To facilitate this, the government has already lowered the basic qualifications required for registration, allowing more locals to enter the profession legally and prevent the negative impact of unauthorised operators on the industry’s future.
Discussing the industry’s growth, Wavita noted that Sri Lanka was now aiming for an annual target of three million foreign tourists. He specifically mentioned the success of the 311-km “Pekoe Trail” in the central highlands, which attracts around 500 tourists daily and helps channel tourism income into plantation-based communities.
He also emphasised the importance of environmental protection, noting that since 25% of Sri Lanka’s flora is endemic, some foreigners enter the country with the intention of “biopiracy,” making the role of trained local guides crucial in safeguarding natural resources.
The VISA training project was implemented by the National Cleaner Production Centre (NCPC) and ASSIST, with the support of VFS Global. The event saw the participation of high-ranking officials, including Manpreet Singh Aurora (Senior General Manager, VFS Global), H.C.P. Jayaweera (Director General of National Botanical Gardens), and Samantha Kumarasena (CEO, NCPC).
Wavita concluded by praising the increasing participation of women in the tourism sector, describing it as a vital contribution to both the industry’s progress and the national economy.
By S.K. Samaranayake
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