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PUCSL approves emergency power purchases

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Adequate supply of fuel to power plants could immediately resolve the rolling power outages in the country caused by shortages of 200–400 MW, says Janaka Ratnayake, Chairman of Public Utilities Commission of Sri Lanka, the electricity sector regulator.

“Lack of funds to buy the required fuel to fire power plants is the main reason for continued power interruptions in large parts of Sri Lanka. We also have run down hydro reservoirs as hydro power was used excessively in the months of December last year and January this year to provide electricity,

“The CEB has been forced to shut down 350 MW of Thermal power plants for the past two weeks due to lack of fuel supply. We have generated 76 percent electricity from thermal power plants 19 percent from hydro and five percent electricity from renewable for this month so far. Hydro generation has increased to 22 percent during the month of February this year due to unavailability of fuel for thermal generation plants which stood at 18 percent in the same month last year,

“Apart for the lack of fuel supply, we also have a technical constraint in the Southern grid where we have advised the Ceylon Electricity Board to find immediate solutions way back in 2017 which has not been materialised yet,”

The currency crunch that the country is facing at the moment has delayed the import of fuel, which has led to power cuts countrywide, says Ratnayake.

“We currently are in the forex crisis where we do not have sufficient funds to buy fuel. We can end this power cut if we get sufficient fuel stocks to operate our power plants,”

Ratnayake says the PUCSL is also aware of the financial issue that the Ceylon Electricity Board is going through.

“We are aware. We have asked electricity consumers to pay their bills on time to reduce the financial burden of the CEB to a certain extent. But the issue is bigger. The electricity generation cost has increased 120 percent from the last tariff hike. The generation cost per electricity unit at the moment is 37 rupees. But we are providing an electricity unit at 16 -17 rupees on average, which does not reflect the actual generation cost. Also, the price of a crude oil barrel in the world market has increased to 113 dollars this year. The Central Bank of Sri Lanka also had taken a decision to float the rupee given the current economic conditions which have caused a higher market volatility at present. All these reasons have a much larger impact on the generation cost of electricity. We believe in a cost reflective tariff to strengthen the CEB and the economy of the country while not burdening the electricity consumers,” Ratnayake said.

Commenting on the Southern grid issue, the Chairman of PUCSL said that CEB had been instructed to find long-term solutions for the issue where 100-150 MW of capacity is being lacking at present.

Considering the existing fuel shortage of the country and electrical energy capacity shortage of the CEB, coupled up with the long term forced outage of all thermal power plants at Kelanitissa, Sapugaskanda and Kerawalapitiya due to no fuel with severe depletion of water resources in reservoirs that led to experience more than seven hours daily power cut to the electricity consumers, the cabinet has declared an “emergency situation’ in the energy sector as required under section 43(4) (c ) (ii) of the Sri Lanka Electricity Act in keeping with the directive of the President made on 02nd March 2022.

With that, CEB has requested the approval of 93 MW of capacity under short-term power purchase agreement from ACE Power (Embilipitiya) power plant for months in order to reduce the long hours of power interruptions immediately.

“We approved the request given the priority of the fuel supply to CEB power plants.

“At the same time, we are having a steady long-term plan to ensure continuous supply of electricity to Sri Lanka. We have approved 600 MW of LNG power plant already.”



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Consumers bearing 22% tax burden despite 18% VAT claim: Dr. Harsha de Silva

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Dr. Harsha

Dr. Harsha points out masses are burdened with cascading taxes

While online casinos and betting roam free without being taxed

Opposition MP Dr. Harsha de Silva yesterday alleged that the actual tax burden on consumers was closer to 22 percent, despite the Government’s claim that Value Added Tax (VAT) stood at 18 percent, due to the cascading impact of the Social Security Contribution Levy (SSCL).

Speaking to the media, Dr. de Silva said the SSCL was imposed at several stages of the supply chain, including manufacturing, distribution, logistics and retail, with the additional costs ultimately being passed on to consumers.

He also criticised the Government over what he described as a delay in bringing online casinos and betting applications under the tax framework, claiming that such operators continued to earn substantial revenues without contributing taxes.

Dr. de Silva said he would closely monitor the June 30 deadline set by the Government for bringing these businesses into the tax net, and questioned the reasons behind the delay.

The Opposition MP further argued that the country’s existing tax policies had placed an unfair burden on consumers and small and medium-sized enterprises (SMEs), while allowing certain sectors to remain outside the tax system.

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Creditor not yet paid

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Apropos ‘Creditor receives USD 2.5 mn as Lankan public bears loss from theft of Treasury funds’, government sources told The Island that the payment hadn’t been made yet. Other sources, familiar with the issue at hand, said that regardless of the payments made to the tune of USD 2.5 mn to fake foreign accounts, Sri Lanka would have to settle the loans within a stipulated period or would be in default, though the due date could be altered through negotiations.

Sources explained that relevant parliamentary procedures had to be followed to make fresh payments.

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Police launch manhunt for suspect software engineer after finding body of girlfriend in abandoned car

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Police have launched a manhunt for a software engineer suspected of abandoning the body of his girlfriend inside a parked car near Teldeniya Hospital.

The deceased was identified as Shamya Darshani, 34, a physiotherapist attached to the Ampara District General Hospital.

Police said that the suspect, a resident of Gannoruwa, Kandy, had allegedly transported the woman’s body in a vehicle, left it parked near the hospital and fled. Police have appealed to the public for information leading to his arrest.

The investigation began after the victim’s brother, a resident of Kota Wewa, Thalawa, lodged a complaint with the Nuwara Eliya Police, on June 17, reporting that his sister, who had been staying at an apartment complex in Nuwara Eliya, had informed him that she had not eaten for several days.

Acting on the complaint, police searched the apartment but found it vacant. However, CCTV footage reportedly showed the suspect arriving at the apartment around 9.50 p.m., on June 16, and remaining there for about 40 minutes. The footage later showed him carrying the unconscious woman from the premises, at about 10.30 p.m. before driving away.

While Nuwara Eliya Police were investigating the disappearance, the Officer-in-Charge of Teldeniya Police received an anonymous telephone call stating that a woman’s body was inside a car, parked near the Teldeniya Hospital.

Police officers who inspected the locked vehicle found the body lying on the front passenger seat, covered with a black cloth. The vehicle was subsequently opened and the body recovered.

Further inquiries confirmed that the deceased was the woman reported missing from Nuwara Eliya.

Police investigations have revealed that the victim and the suspect had been in a relationship for about eight months. Investigators suspect that the woman had borrowed nearly Rs. 15 million from a bank and several individuals and handed the money to the suspect with plans to migrate to Canada together.

According to police, the victim had been under severe mental stress after creditors demanded repayment and the planned migration failed to materialise. She had reportedly moved into the Nuwara Eliya apartment on June 3.

Investigators said she had informed her brother that she had not eaten for three days and had also contacted a psychiatrist at the Ampara District General Hospital seeking assistance for mental distress. She had been advised to seek immediate treatment at the nearest hospital.

Her mobile phone had reportedly been switched off after 4 p.m. on June 16, prompting her brother to lodge a complaint with police.

Police also revealed that the vehicle used to transport the body belongs to another woman from the Ampara area who is also alleged to have been in a relationship with the suspect.

An open verdict was returned following the post-mortem examination, with authorities stating that the exact cause and manner of death have yet to be determined.

Further investigations are being conducted under the direct supervision of the Senior Superintendent of Police in charge of the Nuwara Eliya Division.

 by Norman Palihawadane and S.K. Samaranayake

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