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Energy Minister says CEB salaries and allowances account for 45% of its production costs

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by Saman Indrajith

The CEB would adopt a cost-reflective pricing model as recommended by the International Monetary Fund (IMF), Energy Minister Eng. Kumara Jayakody told Parliament on Wednesday.

Responding to a query from NDF MP Ravi Karunanayake, Minister Jayakody acknowledged that the CEB was incurring significant losses by selling electricity at Rs 28 per unit while production costs stood at Rs 39.30 per unit.

Karunanayake highlighted that the CEB’s carry-forward losses amounted to Rs 288 billion, and combined with salaries and allowances, those expenses accounted for approximately 45% of production costs. He questioned whether an electricity price hike was imminent.

Minister Jayakody said that the government was focusing on developing renewable energy sources to stabilise electricity rates for consumers. He said that since its establishment on November 1, 1969, the government had granted Rs 991.4 billion to the CEB. Additionally, the CEB had received Rs 292.06 billion as short-term and long-term loans.

The Minister also provided information about the CEB workforce, which comprises 22,135 permanent employees, 150 casual employees, 95 contract workers, and 26 trainees. Furthermore, 56 employees from the CEB subsidiary Sri Lanka Energies Pvt Ltd were included in the payroll. In 2024, salary expenses amounted to Rs 23.25 billion, overtime payments to Rs 12.61 billion, professional allowances to Rs 8.88 billion, pension payments to Rs 2.02 billion, statutory payments to Rs 4.61 billion, and medical aid to Rs 1.66 billion. The CEB has not been deducting PAYE taxes from employees since November 1, 2020.

Responding to a question raised by Kalutara District SJB MP Ajith P. Perera regarding solar power, Minister Jayakody dismissed claims that the government intended to limit solar power generation.

Perera said that solar energy contributes approximately 1,400 megawatts to the national grid and supports around 1,000 businesses, providing employment for 25,000 individuals.

Minister Jayakody reaffirmed the government’s commitment to producing power from renewable energy, stating that the administration aimed to achieve 70% renewable energy usage. “Our manifesto clearly outlines the goal of producing around 2,000 megawatts from solar energy sources,” he added.



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Chemmani mass graves: Govt to seek international forensic help

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ECONOMYNEXT –International assistance for forensic analysis of the remains unearthed at the Chemmani mass grave will be sought when the need arises, Sri Lanka’s Minister of has Justice said after opposition legislators urged the government to seek help.

“We have spoken to embassies, we have made all the local finances necessary for excavation. But when it comes to DNA analysis, depending on the type and nature we will definitely have to go for internationally recognised places,” Harshana Nanayakkara said in response to a query in Parliament.

Nanayakkara said that request for international expertise is dependant on the direction the courts give on what needs to be done, after which they will decide which agency best suits the proceedings.

The minister also recognised that local expertise is lacking in the forensic department, and the need to train local staff with the help of international experts.

Opposition MPs argued that the present need is direct help in forensics from international entities, rather than the longer term need to train the staff on analysis.

Currently, the investigation is in the excavation and exhumation stage, conducted by archaeologist Raj Somadeva and his team.

The existence of the Chemmani mass grave was first brought to light in 1998, during the trial of the rape and murder of schoolgirl Krishanti Kumaraswamy.

In February 2025, construction workers found remains near the Sinthupathy Cemetery, and following investigations ordered by the Learned Magistrate, the mass grave was discovered.

412 bodies have been discovered, with 409 bodies recovered as of 23 June 2026. According to the Office on Missing Persons, this is the 17th recorded mass grave in Sri Lanka.

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ADB approves $57.4 million package to boost Lanka’s rooftop solar drive

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The Asian Development Bank (ADB) has approved a $57.4 million financing package to help Sri Lanka expand access to affordable clean energy and reduce greenhouse gas emissions through a large-scale rooftop solar aggregation and virtual net metering programme.

The financing comprises a $35 million concessional loan, $16.9 million in grants from the European Union and $5.5 million from the Japan Fund for the Joint Crediting Mechanism. With additional contributions from implementing agencies, the total estimated cost of the project is $80.5 million.

Under the Rooftop Solar Aggregation and Virtual Net Metering Project, two state-owned utilities — Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited — will introduce a scalable model to collect electricity generated from large rooftop solar installations and allocate the benefits virtually among eligible consumers.

The initiative will allow consumers to access solar power benefits without having to install individual rooftop solar systems.

ADB Country Director for Sri Lanka Shannon Cowlin said the project would broaden access to affordable renewable energy while strengthening the resilience and inclusiveness of the country’s power sector.

She said the initiative would also support grid modernisation and digital transformation, while creating employment opportunities and encouraging greater participation of women and youth in the clean energy sector.

The project is expected to benefit micro, small and medium enterprises and community organisations that face financial or space constraints in installing their own rooftop solar systems. Through a social compensation mechanism, eligible groups will receive reductions in electricity costs under the virtual net metering system.

The programme will support around 25 megawatt-peak of rooftop solar capacity while strengthening distribution networks, improving digital capabilities and preparing the national grid to accommodate higher levels of distributed renewable energy.

A dedicated training facility will also be established under the project to develop green skills, enhance women’s participation in the sector and build technical expertise in advanced low-carbon technologies.

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Bond scam case against Mahendran, Ravi K fixed for July 22

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The Colombo High Court on Friday ordered that proceedings in the case filed against 11 defendants, including former Central Bank Governor Arjuna Mahendran and former Finance Minister Ravi Karunanayake, over alleged irregularities in the Central Bank bond auction be taken up again on July 22.

The case was called before Colombo High Court Judge Manjula Thilakaratne, who informed court that the Trial-at-Bar bench appointed to hear the matter had not been properly constituted.

Accordingly, the judge directed that the case be recalled on July 22 for further proceedings.

The Attorney General has filed indictments under the Public Property Act against 11 accused, including Mahendran, Karunanayake, Perpetual Treasuries Limited and its directors Arjun Aloysius and Geoffrey Aloysius.

The accused have been charged over alleged irregularities connected to a Treasury bond auction conducted by the Central Bank in March 2016.

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