Connect with us

News

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

Published

on

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.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

SLPP MP killing: 12 Aragalaya activists sentenced to death

Published

on

Amarakeerthi

… ex-Public Security Minister says lives of MP and bodyguard could have been saved

The Gampaha High Court Trial-at-Bar yesterday (11) sentenced 12 persons to death by hanging over the May 9, 2022, killing of former Polonnaruwa District SLPP MP Amarakeerthi Athukorala and his police bodyguard. They were among altogether 39 persons tried by the High Court for the double murder. Of the remaining accused, four persons were handed six-month sentences, suspended for five years, and 23 others acquitted by the Gampaha High Court Trial-at-Bar, consisting of High Court Judges Sahan Mapa Bandara Rashmi Singappuli and A.D. Ruwan Pathirana.

Of the 12 sentenced to death, one continues to evade the law.

The verdict was to be announced on January 14.

Sri Lanka suspended implementation of the death penalty in 1976. The EU has repeatedly warned that resumption of judicial executions would result in consequences.

The new entrant to Parliament, and his bodyguard, were lynched by a ‘Aragalaya’ mob, in broad daylight. They were on their way back to Polonnaruwa when the gang intercepted the MP’s car, in the Nittambuwa town, during violence unleashed in the aftermath of SLPP goons’ attack on those camping at the Gotagohome site at Galle Face.

Footage secured from a nearby CCTV camera showed MP Amarakeerthi Athukorala fleeing the scene with his security officer, who was armed with a gun. Dozens of suspects had been subsequently arrested on several occasions on suspicion of involvement in the MP’s murder. The MP and police officer were killed in a garment store where they took refuge.

Earlier, the case caused major controversy over the Gampaha High Court Trial-at-Bar granting bail to all suspects. The Attorney General appealed to the Supreme Court (SC) to cancel the bail granted by the High Court Trial-at-Bar. The AG argued that releasing the accused on bail would impede a fair trial. The AG asked that the SC cancel the bail order and requested that the accused be placed in remand custody till the conclusion of the trial.

One-time Law and Order Minister Rear Admiral (retd) Sarath Weerasekera told The Island that the lives of the parliamentarian and his police bodyguard could have been saved if the military swiftly responded to the then developing situation. Former Colombo District MP said that he told Parliament that the Army, in spite of having troops at Nittambuwa, didn’t intervene. The powers that be never inquired into the lapses on the part of those responsible for maintaining law and order, the ex-Minister said, alleging that successive governments conveniently neglected that responsibility.

by Shamindra Ferdinando

Continue Reading

News

Over one million Lankan devotees venerate sacred relics

Published

on

Exposition of Devnimori Relics of Buddha at the Gangaramaya Temple (pic courtesy IHC)

The Devnimori Relics of Lord Buddha, brought to Sri Lanka on February 04, 2026, departed for India on February 11, 2026, after the successful conclusion of the Exposition at the Gangaramaya Temple in Colombo. The Relics were accompanied by the Governor of Madhya Pradesh Mangubhai C. Patel, and Deputy Chief Minister of Arunachal Pradesh, Chowna Mein, on their return journey.

At the ceremonial departure, at the Bandaranaike International Airport, Minister of Buddhasasana, Religious and Cultural Affairs (Dr.) Hiniduma Sunil Senevi, Deputy Minister of Buddhasasana, Religious and Cultural Affairs Gamagedara Dissanayake, and High Commissioner of India Santosh Jha, were present to see off the Buddha Relics.

IHC spokesperson: ” During the visit, the delegation led by Governor of Madhya Pradesh, and Deputy Chief Minister of Arunachal Pradesh met Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath, Deputy Minister of Environment Anton Jayakody, and Governor of North Western Province Tissa Kumarasiri Warnasuriya. In addition, the dignitaries interacted with members of the Indian-origin community in Sri Lanka.

The Exposition was inaugurated by President Anura Kumara Dissanayaka from the Sri Lankan side, and Governor of Gujarat Acharya Devvrat, and Deputy Chief Minister of Gujarat Harsh Sanghavi from the Indian side, in the presence of the Chief Incumbent of the Gangaramaya Temple Ven. Dr. Kirinde Assaji Thera at the Gangaramaya Temple, Colombo, on February 04, 2026. The week-long Exposition saw over a million devotees paying their respects. Prime Minister of Sri Lanka (Dr.) Harini Amarasuriya and several Cabinet Ministers, as well as the Speaker, the Leader of Opposition, former Presidents and numerous other Members of Parliament paid their respects during the course of the Exposition.

The Exposition marked the first public veneration of these Holy Relics outside of India. Complementing the exposition, two exhibitions titled “Unearthing the Sacred Piprahwa” and “Sacred Relic and Cultural Engagement of Contemporary India” were also held to showcase the shared Buddhist heritage of India and Sri Lanka.

The Exposition was announced by Prime Minister Narendra Modi during his State Visit to Sri Lanka in April 2025. The Exposition further reinforced the spiritual and cultural linkages between the two civilizational partners. India remains committed to deepening the linkages between both countries through continued bilateral initiatives and regular exchanges between the monastic and scholarly communities.”

Continue Reading

News

Flooded Chemmani mass grave cleared amidst persistent rain

Published

on

Court officials and others, including lawyers, at the Chemmani mass graves site (pic courtesy Tamil Guardian)

Action was taken on Monday (9) to drain rainwater from the Chemmani mass graves as preparations continued for the next phase of excavation, Tamil Guardian has reported.

During the first and second phases of excavation at Chemmani, a total of 240 sets of human skeletal remains were identified. Of these, 239 sets have so far been exhumed under court supervision.

Although funds had already been allocated and preliminary arrangements were in place to begin the third phase of excavation, persistent heavy rainfall, in Jaffna, since November last year, resulted in rainwater stagnating within the burial site, bringing the process to a halt.

In response, steps were taken on Monday to remove the accumulated water with the assistance of the Nallur Pradeshiya Sabha. However, despite the drainage, the site remains heavily waterlogged and muddy, making immediate excavation unsafe, Tamil Guardian reported.

As a result, it has been decided that a determination on when the next phase of excavation can commence will be made on 16 March, when the case is due to be taken up again. The matter has been adjourned to that date.

The drainage operation was inspected on site by a team that included Jaffna Magistrate S. Lenin Kumar, Judicial Medical Officer Sellaiyah Pranavan, and Attorneys-at-Law Niranjan and G. Rajitha.

Tamil Guardian disclosed that funds allocated last year by the Ministry of Justice for the third phase of excavation have lapsed and been returned, as the work could not proceed within the allocated timeframe. As a result, a fresh budget proposal must now be submitted for the current year in order to secure the necessary funding.

The Judicial Medical Officer has taken steps to submit a new cost estimate to the court, so that the excavation process can resume once conditions at the site permit.

Continue Reading

Trending