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CEB trying to recover loss of Rs 32 bn during drought by increasing electricity tariffs

Published

3 years ago

2023/10/7

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.

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Related Topics:K.A. Noel Priyantha The Ceylon Electricity Board

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Theft of USD 2.5 mn from Treasury: CoPF accused of complicity in NPP cover-up

Published

18 hours ago

2026/06/15

Thilina Walpola

Harsha rejects what he called frivolous accusations

Chairman of Committee on Public Finance (CoPF) Dr. Harsha de Silva dismissed Free Lawyers’ claim that his Committee had helped delay a proper investigation into the theft of USD 2.5 mn (nearly Rs 1 bn) from the Treasury.

The Colombo District SJB MP said that he wouldn’t comment on frivolous accusations against his Committee. “We conduct ourselves in keeping with the highest standards of professionalism and responsibility.”

Dr. de Silva said so when The Island raised the Free Lawyers’ allegation that the Treasury and the Central Bank were using the CoPF as a tool to prolong investigations into the unprecedented theft of funds. Free Lawyers targeted the CoPF in a statement issued by Maithri Gunaratne, PC, and civil society activist Rajith Keerthi Tennakoon.

The other members of the CoPF are Harshana Rajakaruna (SJB), Ravi Karunanayake (NDF), Nimal Palihena (NPP), Wijesiri Basnayake (NPP), Thilina Samarakoon (NPP), Lakmali Hemachandra (NPP), Chathuranga Abeysinghe (NPP), Kaushalya Ariyaratne (NPP), Akram Ilyas (NPP), Shanakiyan Rajaputhiran Rasamanikkyam (ITAK), Champika Hettiarachchi (NPP), Sunil Rajapaksha (NPP),

M. K. M. Aslam (NPP), Ajith Agalakada (NPP), Rauff Hakeem (SLMC), Chitral Fernando (SJB) and Nishantha Jayaweera (NPP).

Tennakoon said the theft of funds happened over eight months ago and the Parliament owed the country a clear explanation regarding the disappearance of USD 2.5 mn. The CoPF, instead of expediting the process, has conveniently granted time for those responsible for the loss to cover up their tracks. “Free Lawyers pursue the issue at hand vigorously as we were the first to reveal the loss of USD 2.5 mn. Those who knew it remained silent until our disclosure,” he said, alleging that Speaker Dr. Jagath Wickremaratne was yet to respond to their letter regarding the USD 2.5 theft.

Responding to queries, Tennakoon said that political parties represented in the CoPF should be held responsible for the developing situation. “The Committee on Public Accounts Committee (CoPA) headed by SJB MP Kabir Hashim too, should explain its failure to deal with the USD 2.5 mn theft. Both CoPF and CoPA led by two SJB MPs should act now. Dr. de Silva and Hashim are answerable to the public, particularly because they represent the main Opposition.”

The CoPA consists of Kabir Hashim, Maj. Gen. Aruna Jayasekera (NPP), Sugath Thilakaratne (NPP), Anton Jayakody (NPP), Chandana Sooriyaarachchi (NPP), Ruwanthilaka Jayakody (NPP), Nalin Hewage (NPP), Oshani Umanga (NPP), Manjula Suraweera (NPP), Sagarika Athauda (NPP), Janaka Senarathna (NPP), K.Illankumaran (NPP), Dinidu Saman Henanayake (NPP), Susantha Kumara Navaratna (NPP), Lal Premanath (NPP), Aravinda Senarath (NPP), Thushari Jayasinghe (NPP), T. K. Jayasundera, Ajantha Gammeddage (NPP), Sundaralingam Pradeep (NPP), Kavinda Jayawardena (SJB), J.C. Alawathuwala (SJB),Hector Appuhamy (SJB), Kaveenthiran Kodeeswaran (ITAK), Chamara Sampath Dassanayake (NDF), Rohitha Abeygunawardena (NDF), M.L.A.M. Hisbullah (SLMC), M.A.M. Thahir (ACMC), Chanaka Madugoda (SLPP) and Sunil Ratnasiri (NPP).

Tennakoon said that both CoPF and CoPA were dominated by the NPP though the SJBers headed them. However, as heads of the two parliamentary committees, Dr. de Silva and Hashim, should be held responsible for lapses on the part of the committees or any deliberate omissions, Tennakoon said, questioning the rationale behind giving the Treasury and the CBSL six weeks to submit their findings to the CoPF.

Free Lawyers alleged that USD 2.5 had been released in spite of JP Morgan Chase and the Federal Reserve in the United States warning Sri Lanka about the suspicious nature of those foreign transactions via SWIFT messages. Tennakoon emphasized investigators should closely inquire into the decision taken to release funds regardless of such high-profile warnings.

Tennakoon said that the integrity of two key parliamentary committees is at stake. The civil society activist said that the country was in a highly critical phase of debt restructuring following a severe economic crisis. Tennakoon pointed out in terms of a condition of the International Monetary Fund (IMF) loan programme, the government’s debt management functions, previously carried out by the CBSL, were recently transferred to a new institution established under the General Treasury—the Public Debt Management Office (PDMO).

by Shamindra Ferdinando

News

Viral diseases on the rise

Published

18 hours ago

2026/06/15

Thilina Walpola

The number of patients hospitalised due to viral illnesses, including dengue fever, had increased significantly, health officials said yesterday, adding that there had been a rise in daily dengue-related admissions.

Acting Director of the National Dengue Control Unit Dr. Kapila Kannangara said Sri Lanka had recorded 41,144 dengue cases as of Saturday (13).

He said more than half of the reported cases—around 51 percent—were from the Western Province.

According to Dr. Kannangara, the number of dengue patients admitted to hospital daily had reached 750, but it had declined to around 630. However, he cautioned that infection levels remained “very high,” despite the slight drop in hospital admissions.

The dengue death toll has risen to 24, prompting several hospitals to issue red alerts amid continued pressure on wards treating incoming patients.

Health officials warned that the situation could worsen if case numbers continued to rise. Dr. Kannangara noted that the growing burden on healthcare facilities could eventually exceed system capacity.

The public has been urged to take preventive measures to eliminate mosquito breeding sites and to seek prompt medical attention if dengue symptoms develop.

by Chaminda Silva

News

Ranil warns of another economic crisis, calls for Opposition unity

Published

18 hours ago

2026/06/15

Thilina Walpola

Former President and UNP leader Ranil Wickremesinghe has warned that Sri Lanka is heading towards a severe economic crisis, alleging that the current administration is steering the country towards “total collapse.”

Addressing a meeting of the UNP Working Committee at the party headquarters on Flower Road on Thursday, Wickremesinghe claimed that the government was facing mounting difficulties on multiple fronts, with the economy continuing to deteriorate.

He also accused the administration of pursuing policies that, he said, marginalised war heroes and Buddhist monks.

Wickremesinghe expressed concern over what he described as an erosion of fundamental and legal rights, citing the arrest and alleged ill-treatment of former State Intelligence Service Chief Suresh Sallay as an example. He said the rising cost of living had emerged as one of the main concerns of the public.

Commenting on the political situation, the former President said the Opposition had not been able to forge unity among the anti-government forces and called for greater coordination among Opposition parties and groups. He advocated a phased mobilisation strategy, beginning at village and electorate level, instead of attempting to address all issues simultaneously.

Wickremesinghe also announced a series of political campaigns and rallies aimed at strengthening the Opposition movement. The programme is scheduled to commence in Kandy this weekend, with subsequent events planned in Kurunegala and Kalutara.

He said the UNP was engaged in discussions with several political parties and organisations, including those led by Minister Jeevan Thondaman, with a view to forming a broader political alliance.Wickremesinghe urged party members to expedite discussions and arrive at a collective decision on the way forward to address the country’s challenges.