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The next two rounds of bilateral talks scheduled later this month and in March

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India, Sri Lanka take trade pact talks ahead 

BY MEERA SRINIVASAN

India and Sri Lanka are set to take the ongoing discussions on the Economic and Trade Cooperation Agreement (ETCA) forward, with the next two rounds of bilateral talks scheduled later this month and in March.

The progress in negotiations is significant for New Delhi and Colombo, as the much-discussed pact was stalled in the past, owing to stiff opposition from some worker unions and hardline Sinhala-nationalist politicians, who saw the agreement as favouring Indian interests predominantly. At least 11 rounds of discussions were held between 2016 and 2019, when the Maithripala Sirisena-Ranil Wickremesinghe administration was in power, but the two signs failed to reach an agreement amid protests in Sri Lanka.

President Ranil Wickremesinghe, who assumed charge as President in 2022 in extraordinary circumstances during the island’s economic crisis when a mass uprising that ousted his predecessor Gotabaya Rajapaksa, has emphasised the need for trade pacts to aid the country’s economic recovery. Earlier this month, Sri Lanka inked a free trade pact with Thailand. India, followed by China, are the other two key partners that Mr. Wickremesinghe is keen to have upgraded agreements with, even as Sri Lankans reel under the painful aftermath of a financial meltdown.

After talks on the stalled pact resumed under President Wickremesinghe last year, substantial discussions have been held. The Sri Lankan government sees the resumption of ETCA negotiations as “a significant step towards strengthening the economic partnership between Sri Lanka and India.”

According to an official update issued after the Sri Lankan Cabinet met on Monday, the 13th round of discussions on the proposed ETCA was held in New Delhi for 10 days beginning January 8. Nine sub-committees tasked with looking into various aspects such as goods trade, service trade, rules of the origin and customs procedure and easing the trade held deliberations.

Official sources familiar with the negotiations said the two sides are exploring ways of linking service trade to investments to ensure there is no threat to local labour. “Free movement of individual professionals is not anticipated in the agreement,” said a senior official. Wickremesinghe, on Monday, briefed his Cabinet on the talks, and the 14th round of discussions of the proposed agreement is scheduled to be held on the first week of March 2024, the official press release said.

India and Sri Lanka first signed a free trade agreement in 1998. While the two sides have since attempted to upgrade it multiple times, the attempts proved unsuccessful. New Delhi and Colombo discussed a Comprehensive Economic Partnership Agreement with former President Mahinda Rajapaksa’s government, but his administration saw the agreement as being redundant at the time. Now, as both India and Sri Lanka prepare for an election year, the two countries are keen to seal the pact, said sources.

(The Hindu)



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Cut power bills by 3-5%, don’t hike them, consumers demand

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By Anuradha Hiripitiyage

Electricity tariffs should be reduced by between 3 and 5 percent instead of being increased by 2.88 percent in the fourth quarter, as proposed by the National System Operator (NSO), Electricity Consumers’ Association Secretary Sanjeewa Dhammika said.

Addressing a media briefing in Maradagahamula, Divulapitiya, Gampaha, yesterday (16), Dhammika said a proper assessment of electricity generation costs, including the contribution of hydropower, could justify a reduction in tariffs.

He said the NSO had sought approval from the Public Utilities Commission of Sri Lanka (PUCSL) for a 2.88 percent tariff increase, which was expected to generate an additional Rs. 4,438 million.

However, the Commission had indicated that an increase of only 1.46 percent was warranted, amounting to Rs. 2,245 million, he said, adding that even this increase was unnecessary.

Dhammika alleged that the proposed revision sought to pass on to electricity consumers the financial burden arising from the non-arrival of five coal shipments and failed tenders.

“The Government had said that the burden of coal-related losses would not be passed on to the public. It is therefore unjust to make consumers bear these costs,” he said.

He pointed out that the PUCSL had forecast that hydropower would account for 32.34 percent of total electricity generation in the coming quarter, while the cost of such generation would represent only 3.45 percent of the overall cost of electricity production.

Consumers should benefit from the lower cost of hydropower generation rather than bear the burden of more expensive thermal power generation, he said.

Dhammika also questioned the inclusion of Rs. 669 million in capacity charges that had not been approved by the PUCSL, as well as a further Rs. 1,069 million to repay loans relating to incomplete projects.

Including such charges in the proposed tariff revision was unjustifiable, he said.

The PUCSL has given the public until October 30 to submit their views on the proposed tariff revision.

Dhammika said the possibility of increased hydropower generation in the coming weeks, as reservoir levels rise, should also be taken into account when determining electricity tariffs.

He maintained that tariffs could be reduced by 3 to 5 percent if hydropower generation was properly assessed and coal-related losses and unapproved charges were excluded from the calculations.

He further claimed that electricity tariffs could be reduced by as much as 10 percent through the promotion of renewable energy and the effective use of solar power and battery storage systems.

The Electricity Consumers’ Association urged the Government to withdraw the proposed tariff increase, insisting that consumers should not be made to bear costs arising from coal supply problems and other disputed charges.

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Asgiri Mahanayake calls for immediate release of Gnanasara Thera

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Most Ven. Warakagoda Sri Gnanaratana Mahanayake Thera

By S.K. Samaranayake

Most Ven. Warakagoda Sri Gnanaratana Mahanayake Thera of the Asgiri Chapter has called for the immediate release of Ven. Galagodaaththe Gnanasara Thera, who is currently serving a prison sentence, following a court ruling.

The Asgiri Mahanayake made the appeal when a delegation of senior prison officials, including Assistant Commissioner of Prisons and Director of Operations Senaka Pallegedara, called on him on the 16th.

During the meeting, the prelate warned that the continued incarceration of Ven. Gnanasara Thera could lead to a volatile situation and cause public agitation.

Responding to the appeal, the prison officials informed the Mahanayake Thera that the authority to order the release of Ven. Gnanasara Thera did not rest with the Prisons Department but with the President.

Other senior prison officials, including Rajeev Srimal Silva, Sampath Warnakulasooriya and Mangala Welivita, were also present at the meeting.

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Lanka Air Force joins multinational exercise in India

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A Sri Lankan Air Force Beechcraft King Air 360ER during Exercise Tarang Shakti 2026. Photograph: Sri Lanka Air Force

The Sri Lanka Air Force participated in a multinational air exercise in India, alongside the air forces of the United States, France and Germany, as Sri Lanka continues to expand military cooperation with foreign countries.

A Sri Lankan Air Force Beechcraft King Air 360ER aircraft, and a six-member crew, took part in Exercise Tarang Shakti 2026, held at Air Force Station Jodhpur, from September 26 to October 12.

The exercise was hosted by the Indian Air Force, under the theme “Power in Partnership,” and involved Australia, Bangladesh and the United Arab Emirates, among other participating countries.

According to the Sri Lanka Air Force, the exercise was aimed at enhancing operational cooperation and interoperability among participating air forces and providing opportunities to share tactics and operational experience.

India’s public broadcaster reported that the exercise included training and experience in planning and conducting joint multinational combat operations, including counter-air, air defence, reconnaissance and air-to-air refuelling missions.

The exercise also involved 32 countries as observers.

Sri Lanka’s participation comes amid increased military engagement with foreign partners. India and Sri Lanka recently exchanged 240 military personnel under a tri-service exchange programme.

Sri Lankan military personnel also recently participated in a counter-terrorism exercise with Russia, while a senior US Army Pacific official visited Sri Lanka and discussed opportunities for greater joint training.

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