News
SC issues notices to Power Minister, others over FR petition on Rs 3bn loss from irregular tender
By A.J.A Abeynayake
The Supreme Court has issued notices to Minister of Power and Energy Kumara Jayakody and several other respondents in connection with a fundamental rights petition alleging that the government is set to incur a loss exceeding Rs. 3 billion due to irregularities in the awarding of a solar power plant tender in Siyambalanduwa, Athimale.
The petitioner claims that the Ceylon Electricity Board (CEB) had called for tenders to construct a 100-megawatt solar power plant, but the contract was awarded to a higher bidder, disregarding the lowest bid, resulting in a significant financial loss to the state. The Supreme Court issued the order on Thursday (20) and directed that notices be sent via courier service by 24 February, at the expense of the petitioner. The decision was delivered by a bench comprising Justices S. Thurairaja and Sampath B. Abeykoon.
According to the petition, a company that offered to supply electricity at USD 0.08 per kilowatt-hour was overlooked in favour of a bidder offering USD 0.122 per kilowatt-hour. The petitioner, Milinda Prasanna Madugalla, stated that he learned of the decision through media reports on 21 January 2025. The petition further alleges that the company awarded the contract later agreed to provide electricity at USD 0.08 per kilowatt-hour, but the government had also agreed to cover additional transmission facility costs over a ten-year period, significantly increasing expenditure.
Although the electricity supply cost was eventually reduced, the substantial increase in transmission charges has resulted in an estimated loss of Rs. 3.3 billion to the government. The petitioner argued that this financial burden would ultimately be borne by the public, making the respondents’ actions unlawful and a violation of fundamental rights.
During the hearing, Senior Counsel Suren Fernando, representing the petitioner, urged the court to treat the matter as urgent and allocate an early date for further proceedings. He informed the court that notices had already been issued to all respondents and relevant parties, along with supporting documents.
However, only a Deputy Solicitor General representing the Attorney General, listed as the 10th respondent, was present in court. The remaining nine respondents or their legal representatives failed to appear.
The Supreme Court has issued notices to Minister Kumara Jayakody, the Ceylon Electricity Board, Rividenavi (Pvt) Ltd, Lakdanavi Ltd, WinSports Ltd, Blue Circle (Pvt) Ltd, Athimale Plantations (Pvt) Ltd, Secretary to the Ministry of Power and Energy Prof. K.T.M. Udayanga Hemapala, and Cabinet Secretary W.M.D.L. Fernando.
News
Sri Lanka, India caught in US-Iran ship crisis
By Shamindra Ferdinando
Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.
Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).
The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.
The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.
Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.
The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.
The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR
Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.
SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.
News
Namal further remanded
MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).
Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.
News
IMF projects Lankan economic growth to moderate amidst mounting global uncertainties
Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.
In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.
Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.
Unemployment is expected to remain steady at 3.9% throughout the forecast period.
The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.
Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.
The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.
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