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JAAF denounces PUCSL-approved 66% electricity tariff hike

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The Public Utilities Commission (PUCSL) granted approval to a 66% electricity tariff hike effective 15th February 2023, resulting in exponential increases in costs in the apparel industry, which in turn threatens the continuity of operations, competitiveness and sustainability of a USD 5.5 billion industry, which remains the backbone of Sri Lanka’s economy. The current increase is a further 31% with overall increase of 165% since June 2022. This translates to an increase in manufacturing costs of close to 5% just on electricity.

The Joint Apparel Association Forum (JAAF) is perplexed and surprised that the written and oral submissions presented by the industry on tariff hikes to the PUCSL public consultation have simply been overlooked. It discerns that the approved tariff hike was effected devoid of stakeholder consensus and done simply as a tick-box exercise to concede to legal processes.

The following are the industry-relevant cautions and proposals submitted by the Secretary General of JAAF Yohan Lawrence at the PUCSL public consultation:

Overestimation of demand by CEB – As highlighted by JAAF numerous times, Q4 of 2022 experienced a 15-20% decline in orders (reduction in demand) due to the continuing global recession. JAAF estimated this downturn of economic activity to continue into the 2H of 2023. With this abrupt fall in demand, the industry faced shorter working hours and decreased demand for electricity. PUCSL’s documentation too acknowledged that electricity generation in January 2022 was much higher than in January 2023. However, the then-proposed tariff increase was based on an increased electricity demand as estimated by the Ceylon Electricity Board (CEB), which was not quantified taking the January 2023 pattern into account.

JAAF raised caution stating that the overestimation of electricity demand will result in higher projected costs and requested the CEB and PUCSL to hold off on electricity tariff revisions until an accurate assessment of electricity demand was made. JAAF further requested the CEB to lower its own generation costs before tariff adjustments.

JAAF iterated that with the country’s single biggest industrial exporter facing a reduction in demand, an electricity tariff increase based on an unsubstantiated increased electricity demand makes limited sense.

The impact of increased tariffs on competition – It is vital that Sri Lanka apparel remains competitive with other apparel manufacturing nations and in the international market. With last year’s electricity tariff increases, Sri Lanka stood on par in US dollar terms with regional giants like India, Bangladesh, Vietnam, Indonesia and Thailand offering USD 9 to10 cents per kWh. Meanwhile, African countries including Benin and Togo which are aggressively pushing for foreign investments offer a much lower rate of USD 8 cents per kWh.

With the increases that have gone through, this will leave Sri Lanka with a tariff of around 12cts per kWh, which will undoubtedly make Sri Lanka uncompetitive and unattractive to investors.Impact of repetitive off-peak tariff increases on Sri Lanka apparel – As highlighted by JAAF during the previous tariff hike, off-peak tariff increases defeat the very purpose of having an off-peak tariff slab, which is to incentivize businesses to operate during off-peak hours.

The off-peak tariff was increased from LIKR 6.58 / kWh to LKR 15 in 2022. The new PUCSL document suggested an off-peak increase of LKR 34 / kWh from LKR 15. This denotes a 400% increase in less than 12 months. (JAAF)

JAAF highlighted that Sri Lanka needs to grow a dedicated textile sector, especially with the government investing heavily in the Eravur textile zone. Fabric mills must operate 24 hours a day to attract investors. Therefore a 400% increase in off-peak tariffs is counter-productive to the objective of growing a textile base in Sri Lanka. JAAF further stressed that this increase will discourage companies moving to off-peak operations creating an unnecessary incentive to sustain peak production and thereby increased electricity generation, which is in stark contrast to any basic economic rationale.

Renewable energy and rooftop solar- JAAF urged the CEB to urgently scale up the commissioning of renewable energy including rooftop solar, aligned with the government’s commitments to generate 70% of the country’s energy requirements from renewables.

JAAF emphasized that Sri Lanka needs a commercially viable tariff for Net Plus. The apparel industry has installations of about 200 MW of solar power. However, these companies have not been paid for the last 7 to 8 months. In the event CEB is unable to honour delayed and future payments, JAAF urged the existing companies to be permitted to move to Net Metering. JAAF illustrated that this will immediately eliminate a cash flow burden from the CEB, allowing the increase of the solar footprint, which will in turn reduce demand on the burdened national grid allowing the CEB to generate electricity at a lower cost.

Power wheeling – JAAF has been lobbying for power wheeling for an extended period of time. This is the single biggest catalyst in the move to renewable energy and will undoubtedly be a conduit for investment in the sector. Increased private investment in renewables will reduce the load on the CEB allowing the SOE to reduce its pricing given to the consumer.

JAAF urged the amendment of the CEB Act to be expedited to allow for power wheeling. Taking these facts into consideration, JAAF would like to express deep concern on the government’s decision to increase the industry electricity tariff rates by 30%. JAAF urges the government to consider facts and data when making policy decisions of this scale and nature. At a juncture where the apparel industry is confronting a decrease in demand, electricity tariff increases based on speculative increased demand is blatantly inessential and will only burden an already embattled industry that binds the country’s economy in these unprecedented times.



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Global regulators convene in Colombo for key IOSCO enforcement and cooperation discussions

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Dignitaries at the wide-ranging discussions.

The Securities and Exchange Commission of Sri Lanka (SEC) successfully hosted a series of high-level meetings of the International Organization of Securities Commissions (IOSCO), bringing together leading securities regulators and enforcement officials from around the world to discuss emerging regulatory challenges, strengthen international cooperation, and enhance collective efforts to combat cross-border securities market misconduct.

The meetings, held at the Hilton Colombo from 13 to 16 October 2026, included sessions of the IOSCO Enforcement and Cooperation Committee and its Screening Group (Committee 4/SG), as well as meetings of the Monitoring Group and the Steering Committee. The event attracted approximately 50 senior representatives from securities regulators and exchanges across several jurisdictions, including Australia, Japan, the United States, the United Kingdom, France, Italy, Canada, New Zealand, India, Germany, Belgium, Singapore, China and Spain, reflecting the global significance of the discussions and the growing importance of international regulatory collaboration.

Welcoming delegates to Sri Lanka, Senior Professor D.B.P.H. Dissabandara, Chairman of the SEC, emphasized the critical role of international cooperation in safeguarding market integrity and investor confidence in an increasingly interconnected financial landscape.

“No regulator can effectively address cross-border misconduct in isolation. The speed with which information, transactions and illicit activities can move across borders requires an equally coordinated and timely regulatory response. Strong international cooperation, effective information sharing and mutual trust among regulators are essential to maintaining fair, transparent and resilient capital markets,” he stated.

The discussions focused on a range of enforcement and cooperation matters, including mechanisms for enhancing cross-border information exchange, strengthening investigative collaboration among regulators, addressing increasingly sophisticated forms of securities fraud and market abuse, and promoting the effective implementation of international standards and best practices. Participants also exchanged experiences and insights on emerging enforcement challenges arising from technological developments, digitalization of financial services, and increasingly interconnected global markets.

IOSCO is recognized as the leading international body that brings together the world’s securities regulators and serves as the global standard setter for securities regulation. Through its policy work and cooperative initiatives, IOSCO plays a central role in promoting investor protection, ensuring that markets are fair, efficient and transparent, reducing systemic risk, and strengthening confidence in capital markets worldwide.

Sri Lanka has maintained a strong and active relationship with IOSCO for more than three decades. The SEC became an Ordinary Member of IOSCO in 1993 and has been a signatory to the IOSCO Multilateral Memorandum of Understanding (MMoU) since 2004. The MMoU is the internationally recognised benchmark for cooperation and information sharing among securities regulators and serves as a critical tool in facilitating cross-border investigations and enforcement actions.

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Pan Asia Bank partners Ideal Motors to offer leasing solutions

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Representatives of both parties are seen exchanging the agreement (Standing from left to right) Officials from Ideal motors: Trevene Ferdinand, AGM - Corporate/Tender; Dinesh Manage, Business Development Manager; Kasun Fernando, General Manager - Commercial Vehicles; Nimisha Welgama, Director – Legal and Corporate Affairs; Officials from Pan Asia Bank: Naleen Edirisinghe, Director/CEO; Yohan Ebell, Head of Retail Credit; Sudharshana Hettiarachchi, Officer in Charge – Leasing; and Kanchana Kannangara, National Sales Manager – Leasing.

Pan Asia Bank recently entered into a one-year Memorandum of Understanding (MOU) with Ideal Motors (Pvt) Ltd, creating a new financing avenue for customers purchasing vehicles from the authorised Mahindra dealer. The strategic partnership will enable customers of Ideal Motors to access leasing facilities from Pan Asia Bank, making vehicle financing more convenient while supporting their mobility and business requirements. The agreement also provides an opportunity for the Bank to expand its leasing portfolio and strengthen its presence in Sri Lanka’s vehicle financing market.

Ideal Motors is the authorised dealer for the Mahindra vehicle range in Sri Lanka, including the Mahindra Bolero CPU Truck and Scorpio Jeep/Pickup. The vehicles cater to a range of requirements, from commercial and business applications to personal mobility, making accessible financing an important part of the purchasing decision.

The Bank’s vehicle leasing facilities are designed to simplify the financing process, with convenient repayment options and professional support to help customers select a solution suited to their requirements. For customers, the arrangement brings vehicle selection and financing closer together, reducing the need to navigate the two processes separately.

“Our partnership with Ideal Motors enables us to bring financing closer to customers at the point of vehicle purchase. We remain focused on providing convenient and flexible leasing solutions that support both personal mobility and the needs of businesses,” said Naleen Edirisinghe, Director/CEO of Pan Asia Bank.

Pan Asia Bank and Ideal Motors will work closely during the one-year partnership to maximise business opportunities and deliver a seamless financing experience to customers. The collaboration is expected to strengthen both organisations’ ability to respond to demand for commercial and personal vehicles while creating greater value for customers.

Yohan Ebell, Head of Retail Credit, Pan Asia Bank, said: “Through this partnership, we aim to make vehicle financing simpler and more accessible, with leasing solutions designed to meet the varied requirements of Ideal Motors’ customers.”

The collaboration also reflects Pan Asia Bank’s commitment to building partnerships that make financial services more accessible and responsive to the needs of individuals and businesses.

Pan Asia Bank has established a growing presence in vehicle financing, offering leasing solutions designed around customer convenience and flexibility. Its leasing proposition is supported by a nationwide branch network and a customer-focused approach, enabling customers to obtain guidance on financing options while completing their vehicle purchase.

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Heritance Hotels and Resorts secures four wins at World Travel Awards 2026

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Heritance Hotels and Resorts has secured four distinguished titles at the World Travel Awards 2026, with three national awards recognising its Sri Lankan properties and an international title for Heritance Aarah in the Maldives.

The three Sri Lankan titles recognise Heritance Tea Factory as Sri Lanka’s Leading Heritage Hotel 2026, Heritance Ahungalla as Sri Lanka’s Leading Luxury Hotel 2026, and Heritance Kandalama as Sri Lanka’s Leading Wedding Hotel 2026. Heritance Aarah was named the Indian Ocean’s Leading All-Inclusive Resort 2026.

Internationally recognised within the global travel and tourism industry, the World Travel Awards celebrate excellence across hotels, resorts, and destinations. Recognition at this level affirms the quality, distinctiveness, and consistency of the experiences delivered by Heritance Hotels and Resorts.

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