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Suspension of costly private power purchase, Covid give relief to CEB

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‘Quite baffling Rs 2.8 bn standing charge, Rs 300 mn rent undermined state enterprise’

By Shamindra Ferdinando

The suspension of power purchases from three Independent Power Producers (IPPs) namely Ace Power Matara (20 MW), Ace Power Embilipitiya (100 MW) and Asia Power Sapugaskanda (50 MW) had contributed to the improvement of the financial situation at the CEB, authoritative sources told The Island.

Sources said that the CEB had suspended the agreements on 01 March pending re-negotiation with IPPs as it was felt the annual standing charge alone for three power stations amounted to Rs. 2.8 bn was unfair by the procurer. The decision had been taken at the behest of the then Power Minister Dullas Alahapperuma, who relentlessly pushed for measures required to ease the burden on the cash-strapped state enterprise, sources said, adding that the increase in hydropower output that automatically lessened the country’s dependence on private diesel plants and a significant drop in the demand for electricity due to the crisis caused by the raging Covid-19 epidemic had eased pressure on the CEB. The electricity regulator (PUCSL) is having negotiations with IPPs to finalise approval of a four-year extension of contracts.

Sources said that during Alahapperuma’s tenure as the Power Minister the government had taken the furnace-oil fueled power plants off the national grid, thereby greatly reducing toxic fumes emitted by them.

The three IPPs had strongly pushed for extensions on the basis that being furnace-oil-fired, they were much cheaper for the CEB than auto-diesel-powered plants.

The PUCSL didn’t respond to The Island query regarding the status of CEB’s agreements with Asia Power and ACE Power Embilipitiya as well as Matara? The PUCSL also didn’t explain its role in the discussions with the IPPs.

Gamini Lokuge, last wee, replaced Alahapperuma as the Power Minister, in a mini-cabinet re-shuffle. Alahapperuma received the media portfolio. Sources said that in spite of the ministerial change the Power Ministry was expected to continue with Alahapperuma’s initiatives to curb waste, corruption and other irregularities.

Sources said that two days after Alahapperuma’s exit, the ministry had launched a major building project at Narahenpita to bring all its offices located at different places under one roof. Sources said that the government spent staggering Rs 300 mn annually on renting 37 buildings in Colombo and its suburbs.

Power Ministry spokesperson Sulakshana Jayawardana was not immediately available for comment.

Sources said that though the government had suspended major construction projects due to severe financial constraints, the then power minister Alahapperuma had received the go ahead from Cabinet for the Narahenpita project after he had explained the long-term benefits of it.

Alahapperuma was shifted from the Power ministry to the Media portfolio the day before he was to complete one-year there. Several weeks before the Cabinet reshuffle, CEB Chairman Eng. Vijitha Herath was replaced by M.M.C. Ferdinando. Ferdinando served as the Secretary to the Ministry of Power and Energy during President Mahinda Rajapaksa’s tenure.

Major changes took place at the Power ministry in spite of significant improvements at the ministry with the CEB making a profit in the second quarter since 2010.



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Elders’ home devastated by fire was a ‘house of horror’: Witnesses

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Death toll rises to 12: Director remanded

Some residents were allegedly chained

Police have come under public pressure to investigate allegations of inhumane treatmenf the residents at an elders’ home in Batagoda, which was also reportedly used as a care centre for persons with special needs, following a devastating fire that has so far claimed 12 lives.

Eyewitnesses who were among the first responders told the media that several residents had been chained inside rooms at the Senehase Kedella Elders’ Home when the fire broke out on Wednesday. They claimed that rescue efforts were hindered as iron chains could not be removed, and that some residents died while being restrained.

Authorities have not yet verified these claims, and Police said investigations are continuing.

Police spokesman ASP F.U. Wootler, contacted for comment, said there were rumours to that effect, but the Police were not in a position to verify the claims until a report from the Government Analyst was received. He said eight survivors with burn injuries were being treated in hospital.

Meanwhile, the Director of the facility had been arrested and was due to be produced before the Horana Magistrate’s Court, Police said adding that he was remanded till June 11.

The death toll from the fire has risen to 12 as of Thursday morning following the recovery of additional charred remains during ongoing forensic examinations at the site. Six others sustained serious injuries and are being treated at the Horana Base Hospital.

Police said 72 residents were inside the facility at the time of the blaze. Of them, 10 died inside the building, seven were injured and hospitalised, while 51 were rescued and relocated.

Survivors were initially housed at Batagoda Junior School before being transferred with Army assistance to another branch of the same care network in Galpatha.

A magisterial inquiry was conducted on Thursday morning. Horana Magistrate Lakmini Vidanagamage visited the scene. The burnt remains were examined and removed under judicial supervision.

Separately, allegations have emerged that residents were required to pay an admission fee of Rs. 75,000, along with a monthly charge of Rs. 35,000 to the centre. Police have not commented on these claims.

The director was taken to the scene as part of ongoing investigations, while forensic experts continue examinations to determine the cause of the fire, which remains undetermined.Anguruwatota Police are conducting investigations.

 By Norman Palihawadane and Nishan S Priyantha

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CERT : AI-generated videos depicting Prez, PM lure public into financial scams

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Sri Lanka CERT has issued a public warning over the circulation of artificial intelligence (AI)-generated videos falsely depicting President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya and several other prominent personalities to promote fraudulent investment schemes online.

According to complaints received by the national cyber security agency, the videos have been created using deepfake technology and are being used as part of attempts to defraud members of the public through financial scams.

The images of famous sports personalities and other public figures have also been misused in the deceptive content.

The agency has warned that similar AI-generated material has been used to spread false information relating to investment opportunities, employment offers, as well as matters concerning the country’s economy and tax policies.

According to Sri Lanka CERT, the videos are being widely shared across online platforms and frequently contain links urging viewers to make investments in return for purported profits.The agency has cautioned that these links may redirect users to fraudulent websites designed to steal personal information, financial data and money from unsuspecting victims.

Sri Lanka CERT has urged the public to exercise extreme caution when encountering such content online and advised against clicking on suspicious links or sharing personal information through unverified websites.

“The public should remain vigilant and avoid becoming victims of false information and online fraud schemes,” the agency said.

Sri Lanka CERT has also encouraged internet users to verify information through official sources before acting on any investment, employment or financial offers circulated via social media or other online platforms.

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New tax law comes into force

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Speaker Dr Jagath Wickramaratne endorsing the certificate on a Bill (File)

Speaker Dr Jagath Wickramaratne on Wednesday endorsed the certificate on the Inland Revenue (Amendment) Bill, bringing the legislation into force as the Inland Revenue (Amendment) Act, No. 11 of 2026, Parliament sources said.

The Bill, which amends the Inland Revenue Act, No. 24 of 2017, was passed by Parliament on May 19.

The new law introduces a series of reforms aimed at modernising tax administration procedures, improving compliance and enforcement mechanisms, enhancing the accuracy of tax calculations and deductions, and strengthening transparency within the tax system.

The amendments also support broader economic policy objectives and include measures designed to reinforce anti-money laundering safeguards.Among the key provisions of the Act is the mandatory use of Taxpayer Identification Number (TIN) certificates for specified high-value financial transactions.

The legislation also introduces revisions to the calculation of taxable income, clarifies tax exemptions applicable to certain projects and business entities, and expands the scope for information disclosure to relevant authorities.

The amendments are expected to improve the efficiency of tax administration while facilitating greater accountability and regulatory oversight.With the Speaker’s endorsement of the certificate, the Inland Revenue (Amendment) Bill has now become law as the Inland Revenue (Amendment) Act, No. 11 of 2026.

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