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Kanchana urged to review proposed power sector reforms to avert disastrous consequences

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Herath and Wijesekera

Dissident SLPP lawmaker Charitha Herath has urged Power and Energy Minister Kanchana Wijesekera to review the proposed power sector reforms. The MP warned of dire consequences unless the Power Sector Reforms Secretariat Office addressed the vital issues before undertaking far reaching reforms.

The following is the text of SLPP National List MP’s letter addressed to Minister Wijesekera: “The power sector in Sri Lanka has been undergoing substantial reforms since the early 2000s, aiming to enhance efficiency, foster competition, reduce costs and promote the utilisation of clean energy resources. A recent milestone in this ongoing transformation occurred when the Cabinet of Ministers approved a proposed electricity bill put forth by the Ministry of Power. This Bill was officially gazetted on December 08, 2023, with its primary objective being the facilitation of the unbundling of services provided by the Ceylon Electricity Board (CEB) and the subsequent restructuring of the CEB. Pending approval by the Parliament, the enactment of the new Electricity Act is anticipated, serving as a pivotal step to realize the envisioned reforms outlined in this proposed Bill.

A robust evaluation of the proposed power sector reforms in Sri Lanka is imperative and should encompass comprehensive studies, including technical, economic sensitivity, and risk analyses. These assessments play a crucial role in gauging the potential impact and outcomes of anticipated reforms in a vital sector like electricity. Regrettably, no analysis reports accompanying the proposed Bill or emerging during the recent process have been observed. It is essential that thorough and transparent assessments are conducted to ensure the effectiveness and sustainability of the envisaged reforms in this critical sector.

I strongly advocate for a thorough review of analysis reports before determining critical timelines, attributes, and policy decisions associated with the electricity reform process. Several concerns have been identified:

1. Ministerial Authority: There is concern over the potentially disproportionate authority granted to the Minister.

2. Disparities in Objectives: Notable disparities between the objectives outlined in the report of the Cabinet-appointed committee and the Act are observed.

3. Selection Mechanism Transparency: The proposed mechanism for selecting and appointing individuals to institutions lacks professionalism and transparency.

4. Rigid Timelines: The reform timelines appear aggressive, providing limited flexibility for necessary corrections.

5. Automatic Activation Challenges: Automatic activation of Act provisions may hinder changes in government policy without amending the Act.

6. Harmony with Existing Acts: Lack of harmony with other Acts, such as the Sri Lanka Sustainable Authority Act No.35 of 2007, raises concerns of potential overlap of powers and obligations.

7. Least Cost Principle: The least cost principle is not ensured, having been replaced with ‘at least at economic cost,’ which includes externalities.

8. Asset Transfer Clarity: The transfer of CEB assets, particularly ownership of the National Grid, lacks clear definition, with clarity restricted to the ownership of Generation Entities’ assets.

9. Regulator Independence: The Minister’s ability to provide guidelines without restrictions poses a potential challenge to the independence of the Regulator.

10. Regulator Funding: The independence of the Regulator is further threatened due to inadequate authorities provided and the absence of a defined annual levy for licensees to pay to the Regulator.

11. Ministerial Authority on Policy Guidelines: Sole authority of the Minister to issue policy guidelines preventing monopolies, anti-competitive practices, collusion, abuses of a dominant position, and resultant merger situations is a point of concern.

12. Ministerial Discretion on Incentives: Ministerial discretion to grant incentives for private sector investments in Renewable Energy and other technologies warrants careful examination.

13. Dispute Resolution and Customer Safety: Lack of provisions for dispute resolution and customer safety is a notable gap.

14. Consumer Protection: The absence of provisions for Consumer Protection throughout the Act is a matter of concern.

15. Stakeholder Consultation: Optional stakeholder consultation for the preparation of Transfer Plans by the Power Sector Reform Secretariat raises questions regarding inclusivity.

16. CEB-Owned Subsidiaries: No mention of CEB-owned subsidiaries anywhere in the Act requires clarification.

Given the significance of these concerns, I urge your attention to address these issues for the betterment of the proposed reforms. A more comprehensive and transparent approach will ensure the successful realization of the intended objectives and foster public confidence in the transformative changes to our electricity sector.”



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Patali alleges NPP conspiring to put off elections indefinitely

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* Govt. lacks plan to meet IMF targets


By Shamindra Ferdinando

United Republican Front (URF) leader Patali Champika Ranawaka has alleged that the 22nd Amendment is aimed at enabling the National People’s Power (NPP) to perpetuate its rule without conducting elections.

The former Minister was addressing the media at the Flower Road Office of UNP leader Ranil Wickremesinghe on Tuesday (25). Alleging that the Pelawatte-based ‘red junta’ spearheaded the operation to enact the controversial 22nd Amendment, the ex-parliamentarian pointed out that neither President Anura Kumara Dissanayake nor Health and Media Minister Dr. Nalinda Jayathissa, who is also the Cabinet spokesman, never denied declarations made by various members of the NPP parliamentary group that elections wouldn’t be conducted for 10, 20 years.

The President and the Cabinet spokesman never clarified that such declarations were not the position of the government, Ranawaka said. The URF leader pointed out that some NPP/JVP members told those receiving appointments that they would also retire under the same administration.

Addressing the media after former External Affairs Minister Prof. G. L. Peiris, convenor of the Joint Opposition, said that the government recognised them as the real opposition. Referring to Dr. Jayathissa’s recent claim that they conspired at the residence of Prof. Peiris and challenged them to come on to the streets, ex-lawmaker Ranawaka thanked the Minister for the recognition at the expense of the Samagi Jana Balawegaya (SJB). The government accepted the challenge posed by them in spite of the main Opposition party, in Parliament, having 40 MPs, the URF Chief said, urging the government to reveal the identities of those who clandestinely led the ruling party.

The former MP said that the country was now aware of their conspiracies during the past six decades. Blaming the government for its inordinate delay in conducting the Provincial Council polls, and the failure to take tangible measures to do away with the executive presidency, as repeatedly promised in the run-up to the national elections in 2024, Ranawaka alleged that the government was busy conspiring to roll back the electoral map. He also alleged that President Dissanayake was leading the operation.

According to Ranawaka the government was keen to postpone elections indefinitely as its members feared to face the law under a different government.

Commenting on the economic situation, Ranawaka explained how under President Wickremesinghe tough measures were taken during the 2022 to 2024 period to stabilise the country with the backing of the International Monetary Fund (IMF). “However, the country cannot go on beyond 2027 under the current setup. In terms of the agreement with the IMF, the debt repayment was stopped. However, the country will have to start repayment in 2028,” the ex-MP said, pointing out the country’s reserves were down to USD 6.4 bn.

The ex-MP said the IMF expected Sri Lanka to maintain foreign reserves at USD 6.8 bn and to increase the reserves to USD 12 bn next year. In terms of the IMF’s recommendations, the foreign reserves have to be increased to USD 15 bn by 2028, Ranawaka said, recollecting how former President Ranil Wickremesinghe, at a recent book launch, explained the daunting challenges faced by the country on the economic front.

Ranawaka was referring to Wickremesinghe’s speech at the launch of former Minister Ranjith Siyambalapitiya’s book launch at the BMICH, where the former President warned of dire consequences if the government failed to adhere to the IMF formula.

The former Minister disputed the government’s much touted claim that corruption was dealt with. The person who caused an unprecedented gas crisis, in 2021, by promising to supply gas at a much lower price than what was paid by the then government at that time and ended up causing countrywide panic due to “accidental” blasts of domestic gas cylinders, received protection from this government.

The government conveniently refrained from initiating action against that person, Ranawaka said. Referring to the developments leading to President Gotabaya Rajapaksa’s government declaration of bankruptcy in April 2022, the ex-Minister claimed that the IMF, in a letter dated 7 March, 2022, alerted the Secretary to the President, the Finance Ministry and the Central Bank, of the impending economic collapse. The NPP government failed to take action against those responsible for creating the 2022 crisis, Ranawaka said.

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August 15 Super Dvora tragedy: Search continues for missing officer’s body

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Super Dvora Mark III Fast Attack Craft

Navy headquarters yesterday said it was continuing the search for Lt. Thilina Udayapriya, second-in-command of the Super Dvora Mark III Fast Attack Craft (FAC), which sank in the seas off Angulana, on 15 August, 2026. Of the 12-member crew, 11 were rescued but so far SLN efforts to locate the missing officer’s body had failed, sources said.

They said that the salvage operation of the sunken craft, taken delivery from Israel after the end of the war, is continuing amidst gruelling weather and rough sea conditions, and the sunken vessel is now off Bambalapitiya.

Sources said that the vessel collided with a sunken ship MV Thermopylae Sierra that sank in August 2012, during a monsoon storm. The ill-fated Super Dvora Mk III has gone over the ship wreck in spite of it being clearly demarcated in the nautical chart, aka hydrographic chart available to the ill-fated vessel’s crew. But authorities had failed to mark the site with a buoy to warn maritime traffic, in spite of public appeals. (SF)

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Tripartite MoU to expand free cardiothoracic surgeries at KDU Hospital

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The Ministry of Defence, Ministry of Health and Mass Media, and the General Sir John Kotelawala Defence University (KDU), have signed a tripartite Memorandum of Understanding (MoU) to facilitate the expansion of free cardiothoracic surgery services by utilising the facilities of the General Sir John Kotelawala Defence University (KDU) Teaching Hospital.

The Defence Secretary Air Vice Marshal Sampath Thuyacontha (Retd), Secretary to the Ministry of Health and Mass Media Dr Anil Jasinghe, and Vice Chancellor of General Sir John Kotelawala Defence University Rear Admiral H. G. U. Dhammika Kumara, signed the agreement on behalf of their respective institutions.

The Defence MInistry said that the initiative, implemented in accordance with a Cabinet proposal submitted by the Minister of Health and Mass Media Dr Nalinda Jayatissa would reduce congestion and address the lengthy waiting list for cardiothoracic surgeries at the National Hospital of Sri Lanka (NHSL).

The Ministry stated: “Under the arrangement, specialist doctors and clinical staff of the Cardiothoracic Unit of the National Hospital will conduct free heart and thoracic surgeries and provide specialised treatment for patients at the KDU Teaching Hospital. KDU will provide the necessary infrastructure, medical facilities and specialised equipment, while the Ministry of Health and Mass Media will provide the required medicines, medical supplies and specialised medical care.”

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