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Lanka opens floodgates for corruption in power sector: Harsha

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4 years ago

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ECONONOMYNEXT – Sri Lanka has opened the floodgates for corruption by ending competitive bidding for private renewable power plants opposition legislator Harsha de Silva, who tried to limit high feed in tariffs only to plants below 10 Mega Watts said.

“Due to non transparent procurement and corruption we pay so much more than necessary for electricity,” de Silva said in a twitter.com message after the ruling party rejected his proposal to limit procurement corruption.

“One bright spot was the requirement for competition in renewable projects but had delays. Instead of fixing the problem they did away w competition. Horrible decision.

It will be interesting to see how the IMF, World Bank, ADB views this absolutely unacceptable new development in #SriLanka.

“This is 180 degrees opposed to what donors would want from us begging for dollars. This will open a floodgates for corruption.”

Some observers say Chinese funding built up a contractor class in the country which was able to influence the polity of the country, but Western donor agencies has promoted the renewable lobby at a time when their prices were un-competitive allowing them to develop ways of influencing public policy.

In many developed nations the renewable firm had to use public relations sometimes called ‘green washing’ to win special subsidies from the policies and influence public policy.

However renewable technologies have now matured and developing countries can use them at market rates and most cost-effective technologies are also emerging allowing grids of poor countries to handle unstable supply from highly volatile renewable sources.

Under then Minister Ajith Perera, renewable feed in tariffs collapsed under competitive tendering allowing investors without political clout to enter the renewable energy business.

Defying conventional wisdom, prices for smaller plants were lower than expected despite their smaller scale due to lowered barriers of entry in the form of the required investment.

Sri Lanka’s Podujana Party with ex-Prime Minister Mahinda Rajapaksa voted with 120 votes in favour and 36 votes against to do away with competitive tendering for renewable power plants.

There were 13 abstentions.

De Silva’s amendment to limit higher prices to only plants below 10 MegaWatts was also rejected.

Recent tenders have also not been approved by political authority pending the removal of competitive tendering, unions have charged.

Meanwhile Power Minister Kanchana Wijesekera said CEB unions have blocked renewable projects and that is why the Electricity Act was changed and power cheaper than thermal would be introduced.


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Heat Index at ‘Caution level’ in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar, Vavuniya and Monaragala districts

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2 hours ago

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2026/03/26

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of  Meteorology
at 3.30 p.m. on 25 March 2026, valid for 26 March 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in
Anuradhapura, Mannar, Vavuniya and Monaragala districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry
of Health in this regard as well. For further clarifications please contact 011-7446491.

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US dodges question on AKD’s claim SL denied permission for military aircraft to land

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2 hours ago

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2026/03/26

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President

By Shamindra Ferdinando

A spokesperson for the US Embassy in Colombo declared that the United States and Sri Lanka maintain a long-standing defence partnership, grounded in transparency, mutual respect, and shared interests.

The official said so in response to The Island query regarding President Anura Kumara Dissanayake’s recent bombshell disclosure, in Parliament, that his government declined to allow the US Air Force to use the Mattala Rajapaksa International Airport, following the eruption of the latest West Asia war.

We sought views of the US on President Dissanayake’s claim against the backdrop of Sri Lanka being a party to the Acquisition and Cross-Servicing Agreement (ACSA) since 2007. Sri Lanka extended the ACSA in 2017, for another 10-year period, and its extension comes up next year.

The President revealed that the US had requested permission to use Mattala, between 04 and 08 March.

Claiming that the request had been made on 26 February, two days before the war began, President Dissanayake said that the US had sought to land two aircraft, carrying eight anti-ship missiles, but that the request had been turned down to maintain Sri Lanka’s neutrality. The President revealed that the aircraft were to come from a US base in Djibouti.

The US embassy pokesperson explained that questions related to operational movements, including ‘Operation Epic Fury’, should be directed to the Department of War (DOW) in Washington.

Camp Lemonnier is the primary base of operations for US Africa Command in the Horn of Africa. China, too, has its only overseas military base in Djibouti in the vicinity.

Military sources said whatever various interested parties said about US-Sri Lanka relations, the former provided significant intelligence support during last phase of the conflict that enabled the Navy to hunt down floating LTTE arsenals in international waters. Of the eight LTTE vessels sunk, the US backed four hits with specific intelligence, sources said.

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No decrease in remittances from workers due to Gulf conflict, but significant drop in tourist arrivals – CB Governor

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2 hours ago

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2026/03/26

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CBSL Governor

Sri Lanka’s worker remittances had not seen a decrease despite the ongoing conflict in West Asia, Central Bank (CBSL) Governor, Dr. Nandalal Weerasinghe said yesterday.

“Based on currently available data, they have not seen a decline in remittances. In fact, according to that we have observed, is a slight increase in remittances in the past few days, ” the Governor said at a media conference held at the Central Bank head office in Colombo.

Governor Weerasinghe also mentioned that he had not seen any reports about Sri Lankans returning to the country from the Middle East due to the ongoing conflict.

The Central Bank Governor, however, acknowledged that there had been a decrease in tourist arrivals. He confirmed that tourist arrivals had decreased by around 17 percent due to the current volatile situation in the Middle East.

Meanwhile, the Central Bank of Sri Lanka has decided to maintain the Overnight Policy Rate (OPR) at the current level of 7.75%, following its latest Monetary Policy Board meeting.

By Hiran H Senewiratne

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