News
Govt. trying to restore 165 MW Kelanitissa combined cycle power plant, which broke down last Oct.

By Ifham Nizam
The government will act fast to repair the much needed 165MW from the Kelanitissa Combined Cycle Power Plant and connect it to the national grid, Minister of Power Dullas Alahapperuma has assured.
Following his visit to the Plant, on Tuesday evening, Alahapperuma instructed engineers and technical experts to restore its power generation within the next few weeks.
The Minister also stressed that he would request the Indian government to expedite the shipment of necessary parts.
The Kelanitissa Power plant has been out of order since October 2019.
Engineers too expressed confidence that Plant could be restored within the next few weeks.
The Island
learns that parts of the plant were sent to India for repairs last year.
The plant was stopped due to a mechanical fault, and the machines have not been repaired. The delay in repairs was mainly due to the Covid-19 pandemic.
The Kelanitissa Plant has a 20-year power purchase agreement with the CEB and a 20-year fuel supply agreement with Ceylon Petroleum Corporation (CPC) until 2023.
The Sojitz Kelanitissa Power Station (also known as Sojitz Power Station, and AES Kelanitissa Power Station), is a privately-owned 172 MW diesel-fired combined cycle power station. It is owned by Sojitz Kelanitissa Private Limited, a subsidiary of Sojitz Corporation.The power station is located adjacent to the Kelanitissa Power Station, which is a separate government-owned power station.
The power station consists of two generation units, a GEPG9171E gas turbine with a nameplate capacity of 115 MW, and a 57 MW steam turbine manufactured by Bharat Heavy Electricals Limited. The construction was done by Larsen & Toubro.
Power generated by the power station are sold to the Ceylon Electricity Board under a 20-year take-or-pay power purchase agreement. The low-sulphur diesel is supplied through an existing pipeline by the Ceylon Petroleum Corporation, with 20,000 tons, or the equivalent of 28-days of full capacity operations, stored in case of any fuel shortage. The plant’s 20-year contract ends on October 10, 2023.
The economic analysis for the project was conducted in accordance with Asian Development Bank (ADB) guidelines.
This analysis covers the period from the start of construction in 2001 with the commissioning date of 2003 and up to the end of the concession in 2023. All values are adjusted to reflect 2003 prices, since 2003 is the year of the commercial operation date.
Forecast data from 2011 to 2023 were adjusted to real terms using the 2.40% United States inflation forecast utilized in the 2011 financial model.
News
Ex-Minister ordered to pay loan interest in arrears for 24 yrs

By Saman Indrajith
The government has begun recovering funds obtained by former Lands and Land Development, Environment and Wildlife Resources Minister SM Chandrasena for the Janatha Lanka Chilli Marketing Limited (JLCML), which he headed, Parliament was informed yesterday.
Agriculture, Livestock, Land, and Irrigation Minister Namal Karunaratne said that as the Chairman of JLCML, Chandrasena had obtained a loan of Rs. 1,275,000 from the Mihintale Govijana Seva Bank in 2001.
The principal of the loan had not been repaid until the end of last year. “After we came to power, we demanded that the loan be settled. Then, we discovered that the interest on the loan had not been paid for the past 24 years, and attempts had been made to have the loan written off. We stopped that and are now in the process of recovering the interest of Rs. 1,975,233 on the loan,” Karunaratne said.
Karunaratne added that JLCML was registered as a company with the Registrar of Companies on March 21, 2001. As Chairman of the company, Chandrasena requested a loan of Rs. 10 million on April 19, 2001, for the purpose of purchasing chillies from farmers in 12 farmer colonies in the Mihintale Agrarian Service area.
The request was approved by the Mihintale Agrarian Service Committee on the same day and referred to the Anuradhapura District Agrarian Operations Committee, which approved it on April 23, 2001. However, the Agriculture Development Commissioner General recommended that a loan of Rs. 1.2 million would suffice for this purpose. JLCML took the loan and failed to repay it until the end of last year. When the matter was raised, the principal was paid, and we are now in the process of recovering the interest that was not paid for the past 24 years,” Karunaratne added.
News
Govt. won’t be able to pay salaries health workers are demanding through strikes – Minister

By Saman Indrajith
Chief Government Whip and Health and Mass Media Minister, Dr. Nalinda Jayatissa, told Parliament yesterday that the government would never be able to pay the salaries that health workers receive in the UK and Australia because the country simply did not have the funds to do so.
“If anyone hopes to receive salaries similar to those paid in the UK and Australia here, we must remind them of the reality that there are no funds for that,” Dr. Jayatissa said, making a special statement on the token strike action by healthcare professionals.
Dr. Jayatissa emphasised that strikes in the healthcare sector, which endangered patients’ lives, were unacceptable.
He acknowledged the need for fair wage increases but stressed that holding patients’ lives hostage during such strikes was condemnable.
Dr. Jayatissa also stated that despite the government’s efforts to increase basic salaries of healthcare professionals, certain groups had chosen to strike, causing significant disruption to medical services.
Dr Jayatissa said that the Ministry of Finance had arranged for a meeting with the striking groups on 17 March to discuss their concerns. However, the groups announced their strike immediately after the meeting.
The minister said: “As a government, we have given a basic salary increase for the Professions Supplementary to Medicine, and the Interim Medical Services. We have added Rs. 22,000 to the basic salary of Rs. 32,000. For a person with a basic salary of Rs. 37,190 we have added Rs. 26,120. For a person with a basic salary of Rs. 44,520, we have added Rs. 32,010-. For a person with a basic salary of Rs. 54, 590, we have added Rs. 43,320/-.”
Dr Jayatissa said that it was the taxpayers who funded those salary hikes. “It is unfair for senior citizens and other patients to be turned away from hospitals due to the strike.”
“The President is ready to make time to meet and discuss the real issues of the strikers. Instead, they are holding patients to ransom. We have given them a meeting on Wednesday (19) as well. We are ready for talks,” he said.
News
UN advises GoSL on economic recovery

UN Resident Coordinator Marc-André Franche emphasized that Sri Lanka’s ongoing path of economic recovery and reforms need a more responsive, accountable public service, improved service delivery, economic modernization, and strengthened social dialogue at both national and local levels. The UN official asserted that social dialogue is key to Sri Lanka’s economic recovery and social cohesion.
The UN Resident Coordinator was addressing the second steering committee meeting of the Social Dialogue for Peace and Crisis Prevention in Sri Lanka project, a collaborative initiative between the Government of Sri Lanka, and the United Nations held recently at the UN Compound in Colombo. The meeting, chaired by the UN, Ministry of Public Administration, Local Government & Provincial Councils, and Ministry of Labour, focussed on progress in advancing social dialogue, dispute resolution, and public sector inclusion.
Launched in 2024, the project, is implemented by the UN through the International Labour Organization (ILO), United Nations Educational, Scientific and Cultural Organization (UNESCO) and the United Nations Population Fund (UNFPA). The project aims to foster a peaceful, inclusive, and just response to the effects of Sri Lanka’s economic crisis. This is achieved through social dialogue and dispute resolution mechanisms at both national and local levels.
The meeting brought together key stakeholders, including representatives from the Ministry of Justice, workers’ and employers’ organization, to discuss the project’s progress and key developments. Highlights of recent efforts include establishing six public sector workplace forums, conducting awareness sessions on social dialogue and workplace cooperation for priority sectors, as well as training on gender responsive public service delivery. These efforts foster conflict resolution, harmonious workplaces, and a culture of social dialogue.
The Secretary, Ministry of Public Administration, Local Government & Provincial Councils, underscored the salient role of the public sector in economic recovery efforts, and the importance of a sector equipped for both a stronger, efficient service delivery to public and private sectors.
The Secretary, Ministry of Labour emphasized the importance of social dialogue in the public sector both within institutions as well as externally which would lead to a collective voice and maintaining industrial peace.
The Additional Secretary, Ministry of Public Administration, Local Government and Provincial Councils, commended the project for creating additional platforms to interact with public officials at all levels.
The pilot phase of the project saw success in the railway sector, where 10 workplace forums were established, helping minimize service disruptions. The project also aims to develop a national industrial dispute database to support policymaking, enhance gender responsiveness in the public sector, and amplify community voices in national policy making structures.
The project is funded by the UN Sri Lanka SDG Fund with support from Canada, European Union, the United Kingdom, the United States, the UN Secretary General’s Peacebuilding Fund and the Joint SDG Fund.
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