News
No cost recovery by CEB despite sharp price increase
By Ifham Nizam
The Ceylon Electricity Board (CEB) expects to collect revenue between Rs 32 and 35 billion in October, up from a monthly Rs. 20 billion earlier.Though a 75 per cent tariff increase was enforced in August, CEB was able to collect only Rs. 29.5 b in September. This is due to variation in the billing process, a top CEB official said.CEB Finance Manager Tissa Liyanage told The Sunday Island that before the price revision they were collecting nearly Rs. 20 billion monthly. “Now total income would be between Rs. 32 and 35 billion.”
According to electricity sector regulator, Public Utilities Commission of Sri Lanka (PUCSL) the annual revenue requirement as filed by CEB is Rs. 505 billion (excluding LECO costs) requiring 82.4% increase in revenue to recover the projected costs for 2022. When the proposed tariff revision is applied, the overall revenue increase is forecast at 512 billion (including LECO sales) meaning a 79% increase.
The tariff revision has been submitted in terms of Section 30(2) of Sri Lanka Electricity Act No. 20 of 2009 and the tariff methodology approved by the PUCSL.The PUCSL stated that it rejected the CEB’s proposal to increase electricity tariffs by 229%, capping the hike at 75%, after taking all public and other stakeholder comments into account.
Power and Energy Minister Kanchana Wijesekera said that the CEB is likely to make a loss of Rs. 152 billion in the next four months despite the electricity tariff hike implemented in August.
“During the first eight months of the year, the CEB has lost over Rs. 108.67 billion,” he said.
Irrespective of the massive losses, the minister said it has been estimated that an additional income of a monthly Rs. 15 billion could be generated by the CEB following the upward tariff revision effective from August 10 – the first after nine years.Wijesekera attributed the long delay in introducing a cost-reflective pricing mechanism as the key reason for the massive losses incurred. He added these losses were due to the wrong policies of successive governments rather than wrong decisions of officials.
“Inability to implement new power generation projects and failure to switch to efficient least cost alternative energy sources are key reasons for our present predicament. This compelled us to depend on fuel-based power generation last year,” he said.
In addition, he said increased global fuel and coal prices as well as the rupee’s depreciation adversely impacted the finances of the CEB. This particularly applied to 2022.
Latest News
Sun directly overhead Pallawarayankaddu, Akkarayankulam, Ariviyal Nagar, Puthukkudiyiruppu, Ananthapuram at about 12.11 noon today (29)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is overhead today (29) are Pallawarayankaddu, Akkarayankulam, Ariviyal Nagar, Puthukkudiyiruppu, Ananthapuram about 12.11 noon.
News
FSP fires fresh salvo at Govt.
Development officers to launch countrywide protest over pay, unfulfilled Govt. pledge
Development officers in the State and Provincial Public Services are to stage countrywide protests on Monday (31), demanding action on their longstanding salary grievances and the immediate release of a Cabinet paper the Government has repeatedly said was prepared to address their concerns.
The protest, organised by the Trade Union Alliance of Development Officers in the State and Provincial Public Services, will be held from noon to 1 p.m. across the country, alliance General Secretary Dhammmika Munasinghe said yesterday.
The alliance is led by the Frontline Socialist Party (FSP), a political group that emerged as a splinter from the JVP.
Munasinghe said the Government had informed Parliament in June that a Cabinet paper had been prepared to resolve the issues faced by development officers. However, despite several months having passed, the document had not been made public.
“We are asking the Government to make these Cabinet papers public. If the Government wants to stop these protests, it should not put unnecessary labels on us. It should clearly present the measures it intends to take,” he said.
He also challenged Government claims that public servants had already received a significant salary increase, saying the increase being implemented from 2025 to 2027 was insufficient to meet the rising cost of living.
According to Munasinghe, the Government was repeatedly highlighting the salary revision through the Presidential Media Division, Cabinet spokesperson, Ministers and MPs while failing to acknowledge the impact of higher taxes and the rising prices of essential goods.
He said a recent international comparison, based on data from the International Monetary Fund (IMF) and International Labour Organization (ILO), had placed Sri Lanka 120th among 130 countries in terms of wages.
“This makes the real situation behind the claims of a salary increase clear,” he said.
Munasinghe said workers were facing an increasing tax burden, with higher taxes imposed on essential items, including food, medicines and medical equipment. At the same time, the cost of living continued to rise, while fuel prices had been increased six times this year, he claimed.
Against this backdrop, he argued that the salary increases announced by the Government were inadequate in real terms.
He also questioned why public servants and other workers were not being given a mechanism to compensate for rising fuel prices, similar to what he claimed had been provided to Parliamentarians through adjustments to their privileges.
“If fuel adjustments can be given to MPs and Ministers, why can’t the same relief be given to public servants, private-sector employees, fishermen and farmers?” he asked.
Munasinghe said there were mechanisms for adjusting fuel prices and electricity tariffs, but no comparable formula existed to automatically adjust salaries in line with the rising cost of living.
He also pointed to changes in deductions affecting public servants, saying the contribution to the Widows’ and Orphans’ Pension (W&OP) scheme had increased from six to eight percent alongside the salary revisions.
He said such deductions and other costs should also be taken into account when assessing the actual benefit of the salary increases.
“Do not deceive the people. We tell the Government not to lie and not to mislead the public,” Munasinghe said.
Meanwhile, the trade union alliance has also criticised the reported restrictions on social media use by railway employees, describing the move as an attempt to curtail the right of trade unions to express their views.
Munasinghe said the issue arose after the General Secretary of the Sri Lanka Railway Station Masters’ Union publicly stated that train services had declined by around 50%, largely due to problems with railway maintenance.
He said the statement had been made by a recognised trade union as part of its efforts to highlight problems affecting the railway service.
However, Munasinghe claimed that following the statement, disciplinary action had been initiated against the union official.
He questioned the Government’s approach, pointing out that many of its present Ministers and MPs had previously represented trade unions or spoken out in support of workers’ grievances, while in the Opposition.
He said trade unions should not be prevented from raising issues affecting employees and public services.
The Monday protest will, therefore, serve as a broader expression of dissatisfaction over salaries, rising living costs, taxation and what the alliance describes as restrictions on trade union activity.
Munasinghe said the development officers would continue their campaign until the Government clearly sets out its proposals for resolving their grievances and makes the promised Cabinet paper public.
News
Dengue cases near 95,000 as death toll reaches 72
The number of dengue cases reported in Sri Lanka so far this year has risen to 94,805, with 72 deaths recorded, according to the National Dengue Control Unit.
A total of 9,469 cases have been reported so far in August, following 29,962 cases in July and 21,533 in June.
The Western Province accounts for more than half of the reported cases, with 50,167 patients, or 52.92% of the national total. The Southern Province has recorded 13,823 cases, while 8,624 cases have been reported from the Central Province.
At district level, Gampaha has recorded the highest number of cases at 20,207, followed by Colombo with 18,794.
Kandy has reported 6,913 cases, while Kalutara and Galle have recorded 6,117 and 6,111 cases respectively.
Meanwhile, 76 Medical Officer of Health (MOH) areas across the country continue to be classified as high-risk zones for dengue.
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