News
Electricity regulator contradicts Minister; tariff reduction certain
…10% to 20% decrease on the cards
By Shamindra Ferdinando
The Energy Ministry couldn’t intervene in the electricity tariff revision as the exclusive authority to do so was vested with the Public Utilities Commission of Sri Lanka (PUCSL) in terms of the relevant Acts, authoritative sources told The Island.
Energy Minister Kumara Jayakody’s recent declaration in Parliament that tariff revision wouldn’t be implemented for a period of three years had no legal validity, sources said. Minister Jayakody said so in response to a query raised by SJB MP Dayasiri Jayasekera.
The PUCSL would make its position on the tariff revision known to the public on Friday (17), sources said, adding that available data indicated that tariffs could be reduced by 10% to 20%.
Earlier, the Ceylon Electricity Board (CEB) proposed to the PUCSL that tariff revision should be put on hold for six months, beginning January 2025. The PUCSL, appointed by President Anura Kumara Disanayake consists of Prof. K.P. Lalith Chandralal (Chairperson), Piyal Henanayake and Dr. Chathuri Samanmali Fernando.
In terms of the Public Utilities Commission of Sri Lanka Act No. 35 of 2002 and the Sri Lanka Electricity Act No. 20 of 2009, the PUCSL is the regulator, hence its authority couldn’t be challenged by the Minister.
Sources said that the PUCSL considered available data, assessment and information before deciding on tariff revision. The Energy Minister, or the Secretary to that Ministry, could have made representations to the PUC during recent public consultations, sources said, adding that several lawmakers appeared before the Commission recently.
The PUCSL couldn’t be deprived of its authority unless the NPP government amended both Acts, sources said.
Alleging that Minister Jayakody deceived the Parliament with regard to the tariff revision issue, Opposition MP Dayasiri Jayasekera told The Island that he would raise a privilege issue in the House. The issue here is whether the Minister is conversant with the Public Utilities Commission of Sri Lanka Act No. 35 of 2002 and the Sri Lanka Electricity Act No. 20 of 2009.
The Minister seemed to have ignored the fact that the Wickremesinghe-Rajapaksa government, in 2023, began introducing four tariff revisions annually. Before that, tariff revisions were effected twice a year.
The last revision was in July 2024 when the PUC reduced power tariffs by 22.5% against the backdrop of the CEB claiming that the maximum affordable was just 3%.
The CEB has requested that the PUCSL revert to the old system as four revisions a year seemed an unnecessary exercise.
We quoted SJB trade unionist Ananda Palitha in yesterday’s issue (13 January) of The Island that electricity tariffs could be reduced by as much as 35% as ,contrary to CEB’s claims, the state enterprise earned significant revenue gains, running into billions of Rupees.
Lawmaker Jayasekera pointed out that Minister Jayakody declared in Parliament that the NPP never promised an immediate electricity tariff revision. That declaration was contrary to President Anura Kumara Disanayake’s assurance, in the run up to the presidential election, that one third of the electricity bill would be reduced, along with the fuel price.
However, the electricity tariff revision was to be announced in October 2024, in line with the previous government’s decision to implement four revisions annually, the former Minister said.
Referring to revisions, both increases and reduction in electricity tariffs, sources pointed out that on every occasion, since 2022, the PUCSL had no option but to disagree with the CEB’s false assessments for obvious reasons. The CEB always proposed higher increases and low reductions in line with their overall strategy, sources said, emphasizing the responsibility on the part of the Ministry to engage the PUCSL.
The government must realise that the PUCSL is the economic, technical and safety regulator of the electricity industry, and the designated regulator for petroleum and water services industries as well. The PUCSL also has been assigned as the shadow regulator for the lubricant market in Sri Lanka.
News
Chemmani mass graves: Govt to seek international forensic help
ECONOMYNEXT –International assistance for forensic analysis of the remains unearthed at the Chemmani mass grave will be sought when the need arises, Sri Lanka’s Minister of has Justice said after opposition legislators urged the government to seek help.
“We have spoken to embassies, we have made all the local finances necessary for excavation. But when it comes to DNA analysis, depending on the type and nature we will definitely have to go for internationally recognised places,” Harshana Nanayakkara said in response to a query in Parliament.
Nanayakkara said that request for international expertise is dependant on the direction the courts give on what needs to be done, after which they will decide which agency best suits the proceedings.
The minister also recognised that local expertise is lacking in the forensic department, and the need to train local staff with the help of international experts.
Opposition MPs argued that the present need is direct help in forensics from international entities, rather than the longer term need to train the staff on analysis.
Currently, the investigation is in the excavation and exhumation stage, conducted by archaeologist Raj Somadeva and his team.
The existence of the Chemmani mass grave was first brought to light in 1998, during the trial of the rape and murder of schoolgirl Krishanti Kumaraswamy.
In February 2025, construction workers found remains near the Sinthupathy Cemetery, and following investigations ordered by the Learned Magistrate, the mass grave was discovered.
412 bodies have been discovered, with 409 bodies recovered as of 23 June 2026. According to the Office on Missing Persons, this is the 17th recorded mass grave in Sri Lanka.
News
ADB approves $57.4 million package to boost Lanka’s rooftop solar drive
The Asian Development Bank (ADB) has approved a $57.4 million financing package to help Sri Lanka expand access to affordable clean energy and reduce greenhouse gas emissions through a large-scale rooftop solar aggregation and virtual net metering programme.
The financing comprises a $35 million concessional loan, $16.9 million in grants from the European Union and $5.5 million from the Japan Fund for the Joint Crediting Mechanism. With additional contributions from implementing agencies, the total estimated cost of the project is $80.5 million.
Under the Rooftop Solar Aggregation and Virtual Net Metering Project, two state-owned utilities — Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited — will introduce a scalable model to collect electricity generated from large rooftop solar installations and allocate the benefits virtually among eligible consumers.
The initiative will allow consumers to access solar power benefits without having to install individual rooftop solar systems.
ADB Country Director for Sri Lanka Shannon Cowlin said the project would broaden access to affordable renewable energy while strengthening the resilience and inclusiveness of the country’s power sector.
She said the initiative would also support grid modernisation and digital transformation, while creating employment opportunities and encouraging greater participation of women and youth in the clean energy sector.
The project is expected to benefit micro, small and medium enterprises and community organisations that face financial or space constraints in installing their own rooftop solar systems. Through a social compensation mechanism, eligible groups will receive reductions in electricity costs under the virtual net metering system.
The programme will support around 25 megawatt-peak of rooftop solar capacity while strengthening distribution networks, improving digital capabilities and preparing the national grid to accommodate higher levels of distributed renewable energy.
A dedicated training facility will also be established under the project to develop green skills, enhance women’s participation in the sector and build technical expertise in advanced low-carbon technologies.
News
Bond scam case against Mahendran, Ravi K fixed for July 22
The Colombo High Court on Friday ordered that proceedings in the case filed against 11 defendants, including former Central Bank Governor Arjuna Mahendran and former Finance Minister Ravi Karunanayake, over alleged irregularities in the Central Bank bond auction be taken up again on July 22.
The case was called before Colombo High Court Judge Manjula Thilakaratne, who informed court that the Trial-at-Bar bench appointed to hear the matter had not been properly constituted.
Accordingly, the judge directed that the case be recalled on July 22 for further proceedings.
The Attorney General has filed indictments under the Public Property Act against 11 accused, including Mahendran, Karunanayake, Perpetual Treasuries Limited and its directors Arjun Aloysius and Geoffrey Aloysius.
The accused have been charged over alleged irregularities connected to a Treasury bond auction conducted by the Central Bank in March 2016.
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