News
Minister Thondaman stresses need for water tariff hike, while sparing poorest
Without the recent increase in water tariffs, the National Water Supply & Drainage Board (NWSDB) would have suffered an annual loss of 34 billion rupees, Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman told the Ministerial Consultative Committee on Water Supply and Estate Infrastructure Development, on Thursday (20).
The Ministerial Consultative Committee was chaired by Minister Thondaman and discussed the increase in water tariff that was approved by the Cabinet of Ministers earlier this week.
The Minister told the Consultative Committee that this decision was taken after careful consideration and extensive discussions. The hike is necessary to address the pressing challenges faced by the National Water Supply & Drainage Board (NWSDB) and to maintain the quality of water services, the Minister said.
The recent increase in electricity tariffs, in January 2023, placed immense strain on the finances of the NWSDB. This constitutes a significant portion of the cost of water production, resulting in monthly losses amounting to 500 million rupees.
Moreover, the burden of debt (due to past capital expenditure to expand water infrastructure), was by currency depreciation and high interest rates, together with the exponential increase in the cost of raw materials required to treat water, has led to further monthly losses of nearly 2.8 billion rupees.
Without the tariff increase, the NWSDB will suffer an annual loss of 34 billion rupees, placing its financial sustainability at risk and hindering its ability to deliver reliable and safe water services to the nation, Thondaman said.
The Minister said that in line with the Sri Lankan Government’s commitment to the Asian Development Bank (ADB) and the pursuit of sustainable development, a new water tariff formula and policy will soon be introduced.
Furthermore, though the tariff increase may adversely affect consumers, in a country already grappling with economic hardships, it is important for the long-term viability of the nation’s water sector, the Minister stated.
The Minister stated that the Ministry is committed to protecting the most vulnerable members of our society.
Thondaman said Samurdhi and Tenement consumers, representing the lowest socioeconomic backgrounds, will not see any tariff increases and will therefore continue to receive the necessary subsidies, and are not subjected to any additional financial burden.
The proposed tariff increase also includes provisions to subsidize low water consumers, schools, hospitals and religious establishments aiming to support those who consume less water, come from economically disadvantaged backgrounds and provide essential social services. The monthly water bills of low water consumers will remain below 1000 rupees, the Minister said.
The Ministerial Consultative Committee on Water Supply and Estate Infrastructure Development also took into discussion various concerns pertaining to the water supply in different areas of the country. The Minister directed the relevant authorities and officials present to look into the concerns raised with immediate effect. (SI)
News
President proposes; Speaker disposes
AKD’s request to Harsha:
Speaker Dr. Jagath Wickramaratne has frustrated an attempt by Chairman of the Committee on Public Finance (CoPF) Dr. Harsha de Silva, MP, to intervene to settle the continuing dispute over the appointment of a new Auditor General.
Dr. De Silva yesterday told The Island he had recently written to all members of the Constitutional Council (CC) drawing their attention to the urgent need to address the issue at hand. The AG’s position remains vacant since 08 Dec, 2025. AG W.P.C. Wickremanayake retired in April and since then there have been a couple of Acting appointments. The CC has declined to endorse any of President Dissanayake’s nominees as the AG.
Asked whether he had taken up the issue with the CC following President Anura Kumara Dissanayake soliciting his support in this regard, MP de Silva said that he had written to CC members as agreed with the President.
The former UNPer and one-time State Minister said: “I did so, giving due respect to CC’s independence, underscoring the critical importance in them working with the President to resolve the crisis. I alluded to the need to have transparency in public financial management during this post-cyclone period where large amounts of funds are being transacted on multiple fronts, both domestic and foreign.”
Responding to another query, Dr. De Silva emphasised that he had clarified that the President must send the names of qualified and experienced persons to the CC for consideration. “However, these letters were returned to me by the Speaker, without being delivered to members of the CC. The Speaker didn’t give an explanation. Thus, except for members who are MPs who had been copied via email by my committee office, others never received my letter of concern. Even though I questioned, in Parliament, the basis of his refusal to forward my communication to the members of the CC of which he is Chairman, no answer was given.”
The CC consists of Dr. Jagath Wickramaratne, Speaker and Chairman of the 10-member body. Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, Aboobucker Athambawa, Ajith P. Perera, Sivagnanam Shritharan, and three civil society members namely Dr. Prathap Ramanujam, Dr. Dilkushi Anula Wijesundere and Dr. Dinesha Samararatne. None of the President’s nominees could obtain CC’s approval as all of them were rejected by the CC.
The present CC was introduced by the 21st Amendment to the Constitution which was endorsed on 31 October 2022.
Both the Bar Association of Sri Lanka (BASL) and the Transparency International Sri Lanka Chapter recently requested President Dissanayake, in writing, to propose a suitable person to the post of AG. The BASL, in another statement that dealt with the forthcoming vacancies in the CC due to three civil society members completing their terms, declared its concern over possible attempts by the President and the NPP government to fill the vacancies with rubber stamps.
The three civil society members will complete their terms on 18 January. In terms of Article 41E of the Constitution, the CC meets at least twice every month, and may meet as often as may be necessary. The Chairman presides at all meetings of the CC and in the absence of the Chairman, the Prime Minister, and in the absence of the Prime Minister, the Leader of the Opposition presides at the meetings of the CC.
Asked whether the CC could be disrupted due to the end of civil society members’ terms, an authoritative official pointed out that in case new appointments were not made the current members could continue.
The Parliament has not so far called for applications to fill the forthcoming vacancies.
by Shamindra Ferdinando ✍️
News
Sri Lanka loses Rs.7.5 bn due to coal tender irregularities: FSP
The NPP government’s coal procurement process has once again come under scrutiny following allegations by the Frontline Socialist Party (FSP) that substandard coal has been imported for power generation and that tender procedures were manipulated to favour a specific supplier.
Addressing the media after a party meeting in Maharagama on Saturday, FSP Education Secretary Pubudu Jagoda said a test report issued by the government laboratory at the Lakvijaya Power Plant had confirmed that the latest coal shipment unloaded in Sri Lanka did not meet the required quality standards. According to the report, the coal’s calorific value ranged between 5,600 and 5,800 kilocalories per kilo, below the 5,900–6,200 kCal/kg range specified in tender requirements.
Jagoda warned that lower calorific value coal would require higher volumes to generate the same amount of electricity, increasing costs significantly. Preliminary estimates, he said, indicated an additional financial burden of around Rs. 7,500 million, which might eventually be passed on to consumers through higher electricity tariffs.
The FSP also accused the government of tailoring procurement rules to benefit the Indian supplier, which has deposited bonds for long-term coal supply for the upcoming season. Jagoda alleged that tender conditions had been altered to accommodate the company, pointing to changes in coal reserve requirements. Under the 2021 Sri Lanka Coal Registration Document, suppliers were required to maintain a minimum reserve of one million metric tonnes with a gross calorific value of 5,900 kCal/kg. This threshold, he said, had been reduced to 100,000 metric tonnes in the 2025 document which is a 90% reduction raising serious concerns.
He further cited past allegations against the Indian company, including findings in a 2016 Auditor General’s report that the company violated procurement guidelines regarding a rice supply contract with Sathosa in 2014. Jagoda also referred to legal issues involving individuals linked to the company, and the suspension of a representative by the International Cricket Council in 2019 over match-fixing allegations.
Beyond company-specific concerns, Jagoda criticised what he described as systemic manipulation of the coal tender process. He questioned why the coal tender, typically called in February or March, was delayed until July, despite electricity being declared an essential service. He also alleged that the tender submission period had been progressively shortened from the internationally accepted six weeks to five weeks, and now reportedly to three giving an unfair advantage to suppliers with existing stock.
The Ministry of Energy has recently issued an amended tender to procure 4.5 million metric tonnes of coal for the Lanka Coal Company for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender.
Jagoda warned that delays and irregularities could lead to coal shortages, higher spot market purchases, increased electricity costs, and even power cuts if hydropower generation falls short. He called for urgent investigations into the procurement process, insisting that the burden of alleged mismanagement and corruption must not be transferred to the public.
by Chaminda Silva ✍️
News
CID summons SJB MP for criticising education reforms
SJB Gampaha District MP Prasad Siriwardhana has been summoned to the CID today (12) for questioning in connection with a statement he made on a private television channel regarding education reforms.
He was earlier asked to report to the CID on 10 January to make a statement. However, as Siriwardhana had notified the authorities that he was unable to appear on that day, he was subsequently asked to come today.
Siriwardhana is one of the critics of the shortcomings of the education reforms introduced by the NPP government.
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