News
CEB trying to recover loss of Rs 32 bn during drought by increasing electricity tariffs
By Rathindra Kuruwita
The Ceylon Electricity Board (CEB) wants to recover about 32 billion that the institution lost through the year, within the next three months, with a tariff hike, K.A. Noel Priyantha, Deputy General Manager (Business & Operational Strategy) said in a televised interview.
“On 15 February, 2023, we got a tariff increase. So for 45 days in 2023, we only got the 2022 tariffs. In June 2023, we proposed a three percent reduction of the tariff, but the Public Utilities Commission of Sri Lanka (PUCSL) recommended a 14 percent cut. We lost about 32 billion rupees in expected revenue because of these two reasons,” he said.
Priyantha said that the CEB had issues with PUCSL in the recent past and that it is only now that the relationship between the two institutions has improved.
“We expected rains, but there was a dry patch, and we had to release water from Samanalawewa for agriculture. We could produce less electricity from hydropower than we expected. We now need to produce electricity using fossil fuels. That costs more, and we can’t borrow now, so we need to go for a tariff increase. The IMF has insisted on cost-reflective pricing. We are trying to recover the 32 billion we have lost with the tariff hike,” he said.
The DGM said that the CEB only has three months to achieve its revenue targets. If PUCSL had only approved a three percent tariff reduction, there would have been no need to increase tariffs by a significant percentage.
“The CEB spends 2.80 rupees to produce a unit of electricity, using hydropower. The CEB is allowed to revise tariffs once every six months, but diesel prices are revised once a month. The average cost of a unit of electricity now is about 44 rupees,” he said.
Priyantha said they have forwarded two proposals to the CEB. One suggestion is to increase the tariff for a unit of electricity by eight rupees for all consumers. The other is a 22 percent tariff hike across the board, he said.
A few years ago, the CEB could have purchased a unit of electricity, generated by renewable sources, for around 22 rupees, he said. Unfortunately, some elements at the CEB were against local businessmen making money, and the solar power industry is now on the verge of collapse, Priyantha said.
“Moreover, we have not paid renewable energy producers in eight months. I always bring this issue up and some progress has been made. We are making some big investments. In Mannar, a 500 megawatt wind plant is coming up,” he said.
The CEB is also making space for a 200 megawatt solar power park. One of the main problems with renewable energy is the need to establish extremely costly transmission lines, he said.
“It doesn’t make sense to have a 10-megawatt renewable energy project. At least 100 megawatts need to be produced to make the cost of the transmission line profitable,” he said.
All solar farms connect to a specific point on the electrical grid, and that point is called the “point of interconnection,” or POI. The POI is different for utility-scale versus community solar scale projects, he said.
A community solar project is smaller than a utility-scale project. The project size is measured in terms of capacity. Community solar projects are typically 10 MW or smaller. These projects almost always connect to a three-phased distribution line. A distribution line is conceptually the same as a transmission line but moves electricity at a much lower voltage. A distribution line must be within about 1.6 kilometers of your property (or preferably much less) to make interconnection cost-effective.
Utility-scale projects connect by either connecting directly to a substation or tapping a transmission line (69 kV or higher).
Unless the solar farm is right next to a transmission line or substation, a dedicated transmission line called a generation tie (“gen-tie”) will need to be built. These gen-ties cost approximately one million dollars per 1.6 kilometers to construct, he said.
CEB Senior Engineers’ Association (CEBSEA) Spokesperson Engineer Nandika Pathirage said that reservoirs are receiving rain. On average, the water levels are at about 43 percent, and about 25 giga watt hours of electricity can be produced, he said.
“We only use about 11 gigawatt-hours of electricity. Now we only produce 40 percent of our electricity needs using fossil fuels,” he said.
Pathirage, however, denied claims that the PUCSL has recommended a 14 percent tariff reduction when the CEB has demanded only three.
“PUCSL decided based on the CEB data. When we asked PUCSL, they said that they, in fact, only gave what the CEB asked for. However, it is obvious that there is a cash flow issue now, and the CEB has now asked for a 22 percent tariff hike,” he said.
Pathirage said that the CEB management is of the view that they will not revise tariffs once the PUCSL approves the 22 percent tariff hike.
“We have received less rain fall than expected. The lowest probably since 2018. However, we expect that in the coming months, the north-eastern monsoon will fill up the reservoirs,” he said.
News
Sri Lanka says it denied US request to land two aircraft at Mattala airport
Sri Lanka’s president says his government turned down a request from the United States to land two US combat aircraft at a civilian airport earlier this month.
President Anura Kumara Dissanayake told Sri Lanka’s parliament on Friday that Washington had requested permission for the aircraft to land at Mattala Rajapaksa International Airport in southern Sri Lanka from March 4 to 8.
The request was made on February 26, two days before the US and Israel launched their military offensive against Iran.
“They wanted to bring two warplanes armed with eight antiship missiles from a base in Djibouti”, Dissanayake told lawmakers. “We turned down the request to maintain Sri Lanka’s neutrality”, he added to applause.
The US-Israeli war on Iran has sparked widespread concern globally, as Iranian missile and drone attacks across the wider Middle East have sent energy prices soaring and fuelled fears of a widening conflict.
US President Donald Trump has also been pressuring Washington’s allies to show more support for the war, slamming NATO countries as “cowards” for refusing to help secure the Strait of Hormuz.
Iran has essentially shuttered the critical Gulf waterway amid the war, forcing leaders around the world to scramble to try to offset the effects on their economies and energy supplies.
Amid the turmoil, many countries have refused to get directly involved in the war while calling for urgent de-escalation.
On Friday, Switzerland announced that it would halt any weapons exports to the US that could be used in military operations against Iran, citing its longstanding policy of neutrality.
“The export of war materiel to countries involved in the international armed conflict with Iran cannot be authorised for the duration of the conflict”, the Swiss government said.
Sri Lanka’s president also cited his country’s neutrality in the decision to deny the US request to land the two aircraft at Matalla airport earlier this month.
Dissanayake said he had received another request that same day, on February 26, from Iran to seek permission for three naval vessels to make a goodwill visit to Sri Lanka.
“With two requests before us, the decision was clear,” he said, noting that the government denied both to avoid taking sides as signs of escalating conflict emerged.
“Had we said ‘yes’ to Iran, we would have had to say ‘yes’ to the US, as well”, Dissanayake added.
In early March, Sri Lanka’s navy rescued 32 Iranian crew off IRIS Dena after it was torpedoed by a US submarine off the country’s coast, killing at least 84 people.
Days later, Sri Lanka evacuated more than 200 crew members from a second Iranian vessel, IRIS Bushehr, after the ship requested assistance from Colombo.
[Aljazeera]
News
President maintains Lanka has been even-handed in dealing with Iran and US
Sri Lanka refused the request by three Iranian ships to come to Sri Lanka on a goodwill visit and the request by the United States to land two of its fighter jets in Mattala, President Anura Kumara Dissanayake told Parliament yesterday.
“Sri Lanka maintained neutrality by refusing the two requests by both the US and Iran,” he said.
President Dissanayake provided a clarification on domestic fuel prices in light of rising crude oil prices in the global market and subsequent fuel price increases in other countries, triggered by the ongoing crisis in the Middle East.
The President highlighted that the Ceylon Petroleum Corporation (CPC) currently supplies 57% of the country’s fuel requirements, while the remaining 43% is supplied by the private sector.
He further noted that private sector suppliers have requested pricing that reflects current global market rates for the fuel they import.
Accordingly, the President emphasised that a decisive decision on fuel price adjustments must be reached as expeditiously as possible to ensure the continuity of the national fuel supply.
Addressing the Parliament, the President stated that the current pricing formula dictates that for every one-dollar increase in global oil prices, domestic fuel prices must rise by Rs. 2.
He noted that the primary impact being faced is driven by the surge in global fuel prices rather than the depreciation of the rupee against the US dollar.
The President said that, globally, countries have been compelled to make difficult decisions regarding fuel costs, with price increases ranging from approximately 6% to 50%.
He added that while global prices have risen by as much as 49%, the domestic increase has been limited to 8%.
He further stated that Sri Lanka is currently facing a significant challenge in maintaining fuel supply.
The Ceylon Petroleum Corporation (CPC) accounts for 57% of the country’s fuel supply. He noted that had the CPC been the sole supplier, fluctuations could have been managed by offsetting current losses with future profits.
However, he said the private sector now controls 43% of the market, and their position is that if retail prices do not reflect the current landed cost of fuel, they will cease imports.
He added that, from a business perspective, this is a valid concern, as private companies reportedly incur a loss of approximately USD 55 million per shipment, which he said is unsustainable.
The President emphasised that the contribution of the private sector is essential to maintaining the national fuel supply, but noted that they will only participate if they are able to sell at cost-reflective prices.
He stressed that the issue of fuel pricing must, therefore, be addressed urgently.
He also pointed out that under the existing Act, companies are permitted to increase prices; however, the maximum retail price is determined by the Ceylon Petroleum Corporation.
“Although we have entered into agreements with these private companies, the necessary legislative amendments to the Act have not yet been finalised,” he noted.
Regarding government revenue, the President stated that tax income from fuel currently stands at Rs. 20 billion, compared to Rs. 240 billion generated last year from taxes on diesel.
Latest News
Heat Index likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts
Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 20 March 2026, valid for 21 March 2026
The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491
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