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Lanka looking for cheaper three-year private power to plug capacity gap

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ECONOMYNEXT –Sri Lanka’s state-run Ceylon Electricity Board is looking for cheaper private power to plug near term gaps in supply and to offset high-cost power at the margin of costly generators owned by the utility, Energy Minister Kanchana Wijesekera said.

The CEB has advertised for firm energy above 50 Mega Watts that can dispatched at any time for one, two and three years.

“Objective of this endeavor is to serve the nation with low-cost electricity while maintaining an uninterrupted power supply in the country for 24 hours during any period of the year even in a natural disaster or a technical failure of an existing plant,” the tender notice said.

“The envisaged contract period will be for one, two or three years and expected to connect as early to the system. The source of energy shall be any type which can be dispatched to the national grid at least cost on the instructions of System Control Centre of CEB.”

The plants could be located anywhere and the company will also have to build transmission line to connect to the grid. Bids close on September 07.2023 was drier than expected and next year may also be dry, Minister Wijesekera said. Daily energy demand was now also higher than expected, he added.

The CEB is also in talks with ACE Power Embilipitiya and ACE Power Matara to buy power to plug a short-term gap due to being forced to release extra water from the Samanalawewa reservoir. However, these plants too could be used to replace higher cost CEB plants.

Private power without capacity charge could be bought at around 52 to 58 rupees based on discussions, Wijesekera said. The capacity charge will add to the cost.

Furnace oil is generally cheaper than diesel (CPC pricing and taxes may impact), newer plants with a better heat rate are cheaper than older ones, combined cycles are generally cheaper than pure gas turbines, and coal is generally cheaper than liquid fuels.

According to the latest data the energy cost (without capacity charge) of the Lakvijaya coal plant was 43.23 rupees a unit, Sapugaskanda barge was 44.15 rupees, Uthuru Janani was 44.18 rupees, Sapugaskanda A, 47.76 rupees, the West Coast plant 48.36, Kelanitissa 48.36, Kelanitissa Diesel 63.82.

Small CEB generators in Hambantota which were re-activated to avoid supplementary power was 85.28 rupees, CEB generators in Matugama was 87.24 rupees. A CEB gas turbine (expected to peaking) cost 113.11 rupees and a small GT 143.60 rupees.

CEB is now negotiating with ACE Embilipitiya and ACE Matara to buy power for the Southern grid after demands were made to release stored water ahead of schedule from Samamnalawewa reservoir.

“As a practical matter, some of these private plant are cheaper than some of our (CEBs) older plants,” Minister Wijesekera said. “They have been used for many years and their efficiency is low. At times, taking power from private plant is cheaper than those plants.

“So we have to clearly say the extra power is taken due to dry weather and being forced to release more water than earlier requested for irrigation.”

The capacity charge reflects the investment cost and profit. In the past some private plants under competitive bidding has taken a loss on the energy charge to guarantee a better heat rate and win power purchase deals, industry analysts say. Once a plant has been signed up, the capacity charge is a sunk cost. CEB is expecting to sign up both ACE plants of around 100MW and 23 MWs.

“We need at least about 100 MegaWatts,” Minister Wijesekera said. “As much power utilizing those plants would be an additional benefit. May be if there is a surplus of power we can stop some of the high cost power power plants that is in use today.

“If the GT-7 is going to cost us 143 (rupees), and the other plant is going to cost between 60 to 65 rupees, it makes perfect economic sense to go with those power plants.”

In the past attempts by CEB to get idle private plants before a crisis developed and boost is safety margin when the bargaining power to push down the capacity charge is with the CEB has been shot down by various activists.



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Financial contributions received for ‘Rebuilding Sri Lanka’ Fund

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The Government’s ‘Rebuilding Sri Lanka’ Fund, established to provide relief and support to communities affected by Cyclone Ditwah, continues to receive financial contributions on a daily basis.

Accordingly, the Containers Transport Owners Association made a financial contribution of Rs. 1.5 million, while the Association of SriLankan Airlines Licensed Aircraft Engineers contributed Rs. 1.35 million to the Fund.

The respective cheques were formally presented to the Secretary to the President, Dr. Nandika Sanath Kumanayake, at the Presidential Secretariat on Friday (19).

The occasion was attended by  W. M. S. K. Manjula, Chairman of the Containers Transport Owners Association, together with  Dilip Nihal Anslem Perera and  Jayantha Karunadhipathi.

Representing the Association of SriLankan Airlines Licensed Aircraft Engineers were Deshan Rajapaksa,  Samudika Perera and  Devshan Rodrigo handed over the cheque.

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UNICEF representatives and PM discuss rebuilding schools affected by the Disaster

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A meeting between Prime Minister Dr. Harini Amarasuriya and a delegation of UNICEF representatives was held on Saturday,  (December 20) at the Prime Minister’s Office.

During the meeting, the Prime Minister explained the measures taken by the Government to ensure the protection of the affected student community and to restore the damaged school system, as well as the challenges encountered in this process.

The Prime Minister stated that reopening schools located in landslide-prone areas would be extremely dangerous. Accordingly, the Government is focusing on identifying such schools and relocating them to suitable locations based on scientific assessments.

The Prime Minister further noted that financial assistance has been provided to students affected by the disaster, enabling parents to send their children back to school without an additional financial burden. Emphasizing that school is the safest place for children after their homes, the Prime Minister expressed confidence that the school environment would help restore and improve students’ mental well-being

The Prime Minister also highlighted that attention has been given to several key areas, including the relocation of disaster-affected schools, restoration of school infrastructure, merging and operating certain schools jointly, facilitating teaching and learning through digital and technological strategies, and providing special transportation facilities. She emphasized that the Government is examining these issues and is committed to finding long-term solutions.

The UNICEF representatives commended the Government’s commitment and the initiatives undertaken to restore the education sector and assured their support to the Government. Both parties also discussed working together collaboratively on future initiatives.

The meeting was attended by the UNICEF representatives to Sri Lanka Emma Brigham, Lakshmi Sureshkumar, Nishantha Subash, and Yashinka Jayasinghe, along with Secretary to the Ministry of Education Nalaka Kaluwewa, Director of Education Dakshina Kasturiarachchi, Deputy Directors Kasun Gunarathne and Udara Dikkumbura.

(Prime Minister’s Media Division)

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NMRA laboratory lacks SLAB accreditation

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Dr. Sanjeewa

Drug controversy:

 “Setting up state-of-the-art drug testing facility will cost Rs 5 billion”

 Activists call for legal action against politicians, bureaucrats

Serious questions have been raised over Sri Lanka’s drug regulatory system following revelations that the National Medicines Regulatory Authority’s (NMRA) quality control laboratory is not accredited by the Sri Lanka Accreditation Board (SLAB), casting doubt on both the reliability of local test results and the adequacy of oversight of imported medicines.

Medical and civil rights groups warn that the issue points to a systemic regulatory failure rather than an isolated lapse, with potential political and financial consequences for the State.

Chairman of the Federation of Medical and Civil Rights Professional Associations, Specialist Dr. Chamal Sanjeewa, said the controversy surrounding the Ondansetron injection, which was later found to be contaminated, had exposed deep weaknesses in drug regulation and quality assurance.

Dr. Sanjeewa said that the manufacturer had confirmed that the drug had been imported into Sri Lanka on four occasions this year, despite later being temporarily withdrawn from use. The drug was manufactured in India in November 2024 and in May and August 2025, and imported to Sri Lanka in February, July and September. On each occasion, 67,600 phials were procured.

Dr. Sanjeewa said the company had informed the NMRA that the drug was tested in Indian laboratories, prior to shipment, and passed all required quality checks. The manufacturer reportedly tested the injections against 10 parameters, including basic quality standards,

pH value, visual appearance, component composition, quantity per phial, sterility levels, presence of other substances, bacterial toxin levels and spectral variations.

According to documents submitted to the NMRA, no bacterial toxins were detected in the original samples, and the reported toxin levels were within European safety limits of less than 9.9 international units per milligram.

Dr. Sanjeewa said the credibility of local regulatory oversight had come under scrutiny, noting that the NMRA’s quality control laboratory was not SLAB-accredited. He said establishing a fully equipped, internationally accredited laboratory would cost nearly Rs. 5 billion.

He warned that the failure to invest in such a facility could have grave consequences, including continued loss of life due to substandard medicines and the inability of the State to recover large sums of public funds paid to pharmaceutical companies for defective drugs.

“If urgent steps are not taken, public money will continue to be lost and accountability will remain elusive,” Dr. Sanjeewa said.

He added that if it was ultimately confirmed that the drug did not contain bacterial toxins at the time it entered Sri Lanka, the fallout would be even more damaging, severely undermining the credibility of the country’s health system and exposing weaknesses in health administration.

Dr. Sanjeewa said public trust in the health sector had already been eroded and called for legal action against all politicians and public officials responsible for regulatory failures linked to the incident.

by Chaminda Silva ✍️

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