Business
JAAF lauds PUCSL reduction in electricity tariffs & calls for continued energy policy reforms
The Joint Apparel Association Forum (JAAF) welcomed the recent decision by the Public Utilities Commission of Sri Lanka (PUCSL) to implement a 25.3% reduction in industrial electricity tariffs, parallel to a 27% reduction for domestic customers and a 22.5% overall reduction effective from July 16, 2024.
A press release said: ‘In addition to easing the burden on retail customers, JAAF commended the PUCSL decision for providing much-needed relief to Sri Lanka’s apparel and export industries, enhancing competitiveness and supporting economic recovery.
‘The PUCSL decision was taken in the light of the submission made by the CEB which had the industrial tariff unchanged, and post the public consultation held last week where JAAF made a submission that, Sri Lanka’s apparel exporters were forced to contend with one of the highest electricity tariffs among its competitors. However, following reduction approved by the PUCSL, Sri Lankan manufacturers will now benefit from a tariff rate that is much more competitive.
‘Sri Lanka’s apparel industry, which contributes nearly half of the nation’s export earnings, has faced severe challenges due to high electricity costs. In 2022, tariffs soared from Rs. 6.58/kWh to Rs. 34/kWh, contributing to a decline in apparel export revenue from $5,591.5 million to $4,535.5 million. The recent tariff reductions will alleviate some of these financial pressures, allowing the industry to stabilize and regain its competitive edge.
“We commend the PUCSL for recognizing the significant challenges faced by the apparel sector and taking decisive steps to reduce industrial electricity tariffs as well as tariffs for SMEs and minor industries, all of which were struggling with the higher rates. This decision is a welcome step in the right direction that will prove crucial for maintaining the competitiveness of Sri Lankan exports, and supporting a broad-based, export-led economic recovery.”
“We remain committed to working closely with PUCSL, CEB, and other stakeholders to promote policies that support the apparel industry and the broader economy. By continuing to address systemic issues in energy policy and advocating for fair and sustainable practices, JAAF aims to ensure that Sri Lanka’s apparel sector remains competitive on the global stage,” JAAF Secretary General, Yohan Lawrence said.
‘Another key point in JAAF’s submissions to the PUCSL was its call for the urgent implementation of a rigorous least-cost generation plan utilizing transparent competitive bidding processes for power purchase agreements. In particular, JAAF called on policy makers to ensure that the country’s natural resources, such as wind and solar, were effectively leveraged at the lowest cost to support a sustainable transition to renewable energy.
‘In its submissions, JAAF further noted that consistent and wide overestimation in the tariff forecasting for cost recovery submitted by the Ceylon Electricity Board (CEB) has also driven retail and industrial tariffs unnecessarily higher. In addition to placing a direct and undue burden on average citizens of Sri Lanka, JAAF noted that these major inaccuracies in the tariff forecasting model had eroded the competitiveness of Sri Lanka’s apparel exports.
“Accuracy in the tariff forecasting model is an absolute must. While we are deeply grateful for the decision to reduce tariffs, we must also reiterate that the tariff increase in October 2023 was based on inaccurate forecasting and resulted in the CEB making substantial profits of 61 billion in Q3 2023 and 58 billion in Q1 2024. While such significant profits eventually created clear space for a tariff reduction, it is fairer for all customers when tariffs are based on accurate forecasting at the outset,” Lawrence stated.
‘JAAF also reiterated support for policies aimed at scaling up renewable energy to supply 70% of the national grid by 2030, noting that such a transition remains vital for meeting the demand of global brands for decarbonization while ensuring sustainable energy pricing.’
Sri Lanka has achieved a significant milestone in its tourism sector, proudly welcoming the two millionth tourist arrival on December 26, 2024. The two millionth lucky tourist was Prasan Ingkanunt from Thailand who arrived on UL 403 for his first visit in Sri Lanka with his wife and sister .
This marks the first time since 2018—when the country recorded its highest-ever arrivals of 2.3 million—that such numbers have been reached. The achievement reflects the resilience of the tourism industry despite the challenges of the past five years. This will provide Sri Lanka Tourism with a necessary and crucial breather for its revival and growth.
The past week recorded daily tourist arrivals exceeding 10,000—a figure expected to rise further towards the end of the month—the milestone underscores the success of combined efforts by the private sector stake holders and Sri Lanka Tourism in ensuring a robust holiday season. Promotional campaigns and collaborative strategies have helped pave the way for this achievement, signaling a positive outlook for the future of the indsutry.
Sri Lanka’s tourism industry has faced significant ups and downs since 2019, beginning with the Easter attacks, followed by the COVID-19 pandemic and an economic downturn. Despite these hurdles, the country welcomed 1.4 million tourists in 2023, and the steady growth into 2024 highlights its ability to rebound and regain its status as a sought-after destination.
Strategic government intervention played a key role in this progress, with the initial step taken by the newly elected government resolving the online visa issues in September 2024 ensuring smooth travel for international visitors. The government’s recognition of tourism as a priority industry underlines its commitment to fostering an inclusive economy, with ambitious targets of 3 million arrivals and USD 5 billion in revenue by 2025.
A special ceremony was held at the Bandaranaike International Airport’s Silk Route Lounge to honour the two millionth tourist. Hosted by the Sri Lanka Tourism Promotion Bureau and Airport Aviation Services Limited, the event featured traditional dance performances and the presentation of special mementos.
Sri Lanka’s rich diversity continues to captivate travelers worldwide, offering everything from sun-kissed beaches to lush mountains and exotic wildlife. The country’s efforts have been recognized globally, with 21 international tourism accolades in 2024 alone. These include Forbes Magazine naming Sri Lanka the fourth most popular solo travel destination, National Geographic highlighting the Pekoe Trail as one of the world’s best hiking experiences, and the Wanderlust Gold Award for Most Desirable Island.
People’s Bank Aranayaka Branch moved to a new location recently. The new, spacious premises offer enhanced convenience to customers, providing a full range of services supported by the latest digital banking technology.
People’s Bank Deputy General Manager (Channel Management) Naleen Pathiranage, Kegalle Regional Manager J.D.R Gnanathilaka, Asst. Regional Manageress Kumari Dayananda, Branch Manageress Devika Rathnakumara, as well as bank staff members, Government officials and Customers attended the event.
People’s Bank, established in 1961, is one of Sri Lanka’s leading commercial banks, with the country’s largest customer base of over 15.2 million customers. With country’s largest network of 750 branches and Service Centers and an undisputed leadership in digital banking, the bank continues to drive economic growth and development in Sri Lanka.
By Hiran H.Senewiratne
The Colombo Stock Exchange (CSE) yesterday kicked off with selling pressure on its shares. However, share trading bounced back later and crossed the 15,500 mark reaching yet another new milestone.
Obviously market activities were very positive due to the conclusion of debt restructuring process as well as the upgrading of ratings by the Rating Agencies, coincidentally just before the end of the year.
This has built up confidence in local and foreign investors thus giving them enough reason to expect the continuation of current positive economic trends, market analysts said.
Amid those developments both indices moved. The All Share Price Index up by 135.1 points while S and P SL20 up by 79.95 points. Turnover stood at Rs 9.8 billion with ten crossings.
Those crossings were reported in HNB, which crossed 7.5 million shares to the tune of Rs 2.2 billion and it’s share price traded at Rs 298, Seylan Bank 3.5 million shares crossed to the tune of Rs 245 million and its share price traded at Rs 70, LOLC Holdings 224,000 shares crossed to the tune of Rs 155 million and its share price traded at Rs 700, Hayleys Fabrics 2.4 million shares crossed to the tune of Rs 132 million and it’s share price traded at Rs 55, Commercial Bank 300,000 shares crossed to the tune of Rs 41.8 million and it’s share price traded at Rs 139.75, Eden Hotel two million shares crossed to the tune of Rs 34 million and it’s share price traded at Rs 17, DFCC 303,000 shares crossed to the tune of Rs 28.4 million and it’s share price traded at Rs 93.70, Sampath Bank 200,000 shares crossed to the tune Rs 24.50 and its share price traded at Rs 112.50, JKH one million shares crossed to the tune of Rs 22.3 million and it’s share price traded at Rs 22.30 and Maravila Hotels three million shares crossed to the tune of Rs 21 million and its share price traded at Rs 7.
In the retail market, top six performing companies that contributed to the turnover were LOLC Holdings Rs 511 million (738,000 shares traded), Commercial Bank Rs 403 million (2.8 million shares traded), HNB Rs 392 million (1.3 million shares traded), LMF Rs 306 million (6.6 million shares traded) DFCC Rs 303 million (3.1 million shares traded) and Browns Investments Rs 285 million (40 million shares traded) During the day 293 million shares volumes changed hands in 43000 transactions.
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