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ADB, JICA and WB express concern over parts of Electricity Act Amendments

Published

7 months ago

2025/06/27

The Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), and the World Bank have written to Energy Minister regarding several key issues concerning the Electricity Act 2024 Amendments published in the Gazette recently.

The World Bank, ADB and JICA have been the major development partners in the power sector of Sri Lanka. The three institutions coordinate closely on key policy issues, investments, and technical assistance.

In a letter addressed to Minister of Energy Eng. Kumara Jayakody recently, the institutions thanked the Ministry of Energy and the Power Sector Reforms Secretariat for their continued engagement over the past several months on this topic.

However, they highlight four issues in the version of the Amendments to the Electricity Act 2024 published in the Gazette and being proposed to Parliament for consideration, which they believe impede the original intent and spirit of the Act regarding sector efficiency, good governance, and financial sustainability, all with the ultimate objective of ensuring a high quality of service to consumers at affordable prices.

“We share these comments in the spirit of supporting the Government of Sri Lanka in the smooth implementation of the final version of the Act and ensuring a strong energy sector for the future,” says the letter, signed by the Country Manager of the World Bank and IFC, ADB Country Director and JICA’s Chief Representative of Sri Lanka Office.

The issues highlighted in the letter are as follows:

Permanent Government Ownership

Section 17 of the principal Act, subsection 2 is amended with entities denoted as (a), (e), (f), (g), and (h)(ii) will remain “permanently” owned by the Government (through Secretary to the Treasury). The rationale for maintaining 100% Government ownership for the NSO, NTNSP, and Pension Liabilities Company is understood. However, legislating permanent 100% Government ownership in the Act, will increase the burden on the state, limit any private investment or opportunities into the Generation Company and Distribution Company, and only hinder the Government’s options for development in a sector with large investment needs.

National Transmission Network Service Provider (NTNSP)

Clause 20, subclause 3: The preliminary transfer plan includes LTL Holdings under the NTNSP. LTL Holdings owns and operates over 1GW of generation assets in Sri Lanka and abroad. Additionally, LTL has multiple other businesses including transmission and distribution projects, transformer manufacturing and other engineering projects. In the same clause, the preliminary transfer plan also includes Sri Lanka Energies under the NTNSP. Sri Lanka Energies has approximately 15 MW of mini-hydro plants, and other businesses including manufacturing meter components.

Having both companies under NTNSP would in turn create a generation company owning approximately 20% of Sri Lanka’s generation assets as well as multiple other businesses, come under the responsibility of the NTNSP. Given the urgent need to upgrade the transmission network and the renewable energy integration needs, bundling businesses outside the core function of NTNSP will likely result in a deterioration in the operations of those businesses and a distraction from the core functions of NTNSP. It will also detract from the principal objective of separating the core functions of the CEB, in this case transmission vs generation, and introducing the necessary transparency and removal of conflicts of interest, which were one of the cornerstones of the reforms.

Distribution Company

Clause 20, subclause 4: The preliminary transfer plan assumes the Distribution Company will assume “the assets, liabilities and functions” of LECO. LECO has been operating as an independent company from CEB distribution divisions and has adopted operational efficiencies and innovations for its customers and employees. This proposal will imply that a distribution company/licensee is going to fully absorb another distribution company/licensee, without considering the commercial, operational and legal ramifications.

The creation of a large NTNSP and Distribution Company, combined with the removal of restrictions on a single entity or Government of Sri Lanka acquiring multiple unbundled entities (clause 15, subclause 3) leaves an opening to reverse the unbundling, and return to a system of operational inefficiencies, conflicts of interests, and poor governance, all at a cost to the consumer.

Role of the regulator in tariff setting

Section 29, subsection 3 is amended with the following language: “by the substitution for the words “in accordance with the national tariff policy”, of the words “in consultation with the Ministry of Finance” rather than “after consultation with Ministry of Finance”. We have noted in previous communications that while this was accepted as a reasonable compromise in theory, we want to reiterate that this could pose challenges when trying to implement the act as this language is unclear and open to interpretation and/or legal challenge since there is ambiguity on who has final authority and accountability on tariff setting.

These changes could undermine the overarching objectives of the Electricity Act and the commitments made by the Government under the Asian Development Bank’s Policy-based Loan and World Bank’s Development Policy Operation. It will also weaken attractiveness of Sri Lanka for investors, contrary to the Government’s intentions. We urge the Government to consider the points stated in this letter and amend the clauses to ensure they align with the core objectives of the Electricity Act—good governance, competitive procurement, regulatory independence, and financial sustainability.

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Interpol crackdown: Sri Lankan man among seven arrested in UK for human smuggling

Published

3 hours ago

2026/02/3

Sahan Weerasooriya

Suspect also wanted for child abuse: Extradition process underway

Among seven persons arrested in the United Kingdom for people smuggling is a Sri Lankan wanted by French authorities for the rape of a child.

UK’s National Crime Agency said that it collaborated with police and international partners in INTERPOL’s largest-ever operation targeting people smuggling and human trafficking.

Operation Liberterra III was led by the NCA’s Joint International Crime Centre (JICC) and targeted offenders wanted for a range of crimes who had entered the UK illegally.

Officers from the National Extradition Unit at the JICC made five arrests across London, Bedfordshire, Merseyside and Greater Manchester.

Those arrested included:

A 30-year-old Sri Lankan man arrested in Liverpool and wanted in France for the rape of a child

A 38-year-old Iraqi man wanted for rape in Germany arrested in Greater Manchester

A 29-year-old Egyptian man wanted for murder in France arrested in Bedfordshire

A 41-year-old Syrian man arrested in Greater Manchester and wanted in Germany for organising illegal small boat crossings

A 30-year-old Bulgarian man arrested in London for human trafficking and wanted in France

Greater Manchester Police teams also made two arrests across the county during the operation which was held between 10 and 21 November last year.

A 23-year-old Ukrainian man wanted in Germany for sexual exploitation

A 31-year-old Romanian man wanted in Romania for sexual exploitation

Extradition proceedings are underway for all seven suspects.

The NCA website quoted its Deputy Director of International Rick Jones as having said: “This global operation is a prime example of our commitment to working closely and effectively with international partners to tackle people smuggling and human trafficking.

“We were proud to host the European Co-ordination Unit and used a range of our specialist capabilities to gather and disseminate intelligence to law enforcement agencies across the world, and to enable our officers to identify, locate and detain offenders wanted overseas.

“As a result, seven suspects wanted in connection to serious offences have been removed from our communities and extradition proceedings are ongoing to ensure they face justice.”

Globally, 3,744 suspects were arrested including 1,800 for human trafficking and migrant smuggling offences.

News

Sri Lanka calls on global consular corps to protect nationals amid fishermen incident

Published

3 hours ago

2026/02/3

Sahan Weerasooriya

Foreign Minister Vijitha Herath accepts a token of appreciation

Addressing a gathering of the world’s consular community, Foreign Minister Vijitha Herath issued a pointed, diplomatic request yesterday for the enhanced protection of Sri Lankan citizens abroad, a message delivered against the backdrop of a recent alleged assault on Sri Lankan fishermen by the Indian Coast Guard.

The occasion was the inauguration of the FICAC 2026 South Asia Regional Conference, hosted by The Association of Consuls in Sri Lanka together with the World Federation of Consuls (FICAC) at Cinnamon Life.

Minister Herath, while outlining Sri Lanka’s foreign policy of “non-alignment, strategic autonomy, and constructive engagement,” directly tasked the honorary consul community with a critical role. “I request the honorary consul community to maintain a continued and enhanced focus on safeguarding the rights and welfare of Sri Lankan nationals in respective jurisdictions,” he stated.

The appeal carries significant weight following recent media reports which detailed claims by a group of fishermen from Wennappuwa that they were assaulted by uniformed Indian Coastal Guards. The incident, alleged to have occurred partly in Sri Lankan territorial waters, resulted in hospitalisations and has been referred to the Foreign Affairs Ministry and Navy for investigation. Minister Herath’s carefully calibrated statement before the international audience underscored the government’s proactive but diplomatic approach to citizen welfare overseas.

Prime Minister Harini Amarasuriya, who also addressed the inaugural session, framed Sri Lanka as a nation on a resurgent path. She thanked FICAC for selecting Sri Lanka, noting the choice reinforces the country’s returning credibility under President AKD’s administration.

“Fiscal management is in good control with contained inflation and increased reserve levels and global confidence is returning as the country is moving towards stability, expanded economic activity and inclusive growth,” the Prime Minister stated. She also acknowledged the severe challenge posed by climate change, citing Cyclone Ditwah, and thanked the international community for its support during the disaster, which helped quickly revive the tourism sector.

Both leaders positioned the consular network as indispensable partners in Sri Lanka’s recovery and global re-engagement. Minister Herath emphasised their role in bridging “governments, businesses and communities,” while the Prime Minister stated such forums help reconsolidate the support of global actors.”

The three-day FICAC conference brings together consular officials from across South Asia, focusing on their unique role in facilitating diplomacy, trade, and legal cooperation outside traditional embassy channels.

By Sanath Nanayakkare

News

Korean boost for Thriposha programme: Partnership worth USD 10 mn

Published

3 hours ago

2026/02/3

Sahan Weerasooriya

The Korea International Cooperation Agency (KOICA) has reached agreement with Sri Lanka to strengthen the country’s Thriposha nutrition programme through climate-resilient, locally sourced food systems.

According to the Korean Embassy here the agreement formalised a USD 10 million partnership that would enhance domestic production of high-quality maize, reduce reliance on imports, and reinforce the sustainability of Sri Lanka’s flagship nutrition intervention for children and mothers. The agreement in this regard reflected the shared commitment of the Republic of Korea and Sri Lanka to advancing inclusive, resilient, and sustainable development outcomes, the Embassy stated.

The agreement was signed in the presence of the Ambassador of the Republic of Korea to Sri Lanka Ms. Miyon Lee, the Minister of Rural Development, Social Security and Community Empowerment Dr. Upali Pannilage, Country Representative, World Food Programme (WFP) Philip Ward, and senior representatives from the Ministry of Agriculture, Ministry of Health, Ministry of Trade, Sri Lanka Thriposha Limited, demonstrating the commitment by all relevant stakeholders of this unique project.