Business
JAAF welcomes PUCSL’s recent revisions to electricity tariffs
The Joint Apparel Association Forum (JAAF) welcomes the recent revisions made to electricity tariff for the July – December period by the Public Utilities Commission (PUCSL). JAAF specifically welcomes the revisions made to the off-peak industrial electricity tariffs, as tariff revisions that occurred in mid-2022 and earlier this year overlooked industry submissions and concerns, severely increasing costs of operation, risking unemployment in off-peak hours, hampering the apparel industry’s competition in the region and overall sustainability.
In 2022, the off-peak rate increased from LKR 6.58/ kWh to LKR 15/ kWh. Earlier this year, an off-peak increase of LKR 34/kWh from LKR 15 was initiated which resulted in a 400% increase in electricity tariff rates in just 12 months. As highlighted in the JAAF submissions to the PUCSL last week, Sri Lanka had one of the highest industrial tariffs in the region. This posed a significant threat to the industry’s competitiveness in the region and ability to attract investors at a time the island’s economy is in dire need of foreign exchange. Therefore, the industry commends the electricity regulators’ decision to reduce the industrial tariff including the off-peak industry electricity tariff to 29/kWh, allowing the industry to sustain off-peak operations and employment.
The new revisions have reduced overall industry electricity tariff rates by around 9%. While JAAF commends this move, the industry is hopeful that the electricity regulator would consider higher industrial electricity tariff reductions as the export performance of the apparel industry has taken a massive hit due to a sharp fall in orders given the adverse conditions of the global market. With export earnings from apparel and textile decreasing by 14.55% in May 2023, the industry can benefit from a further reduction in costs of operations with reduced industrial electricity tariff rates. This is also a key component in regaining the industry’s competitiveness in the region that took a hit amidst repeated electricity tariff hikes since last year.
Sri Lanka needs to offer its investors a competitive tariff if we are to sustain existing investments and attract new ones. As highlighted by JAAF on numerous occasions, the Ceylon Electricity Board (CEB) which is the electricity transmitter and distributor must urgently scale up the commissioning of large scale renewable energy projects, to meet the government’s objective of producing 70% of the country’s energy from renewable sources by 2030. This needs to be coupled with approval for power wheeling. The latter will be a catalyst for private sector investment in renewable energy, allowing industries to work with private power companies to secure requirements of power, independent of the CEB generation. This will then decrease the burden on CEB, enabling the SOE to lower consumer prices setting the premise to drive down high costs of generation and attract foreign investments through increased competition.
Sri Lanka’s Central Bank Governor, Dr. Nandalal Weerasinghe, has underscored the critical role of sovereign credit rating agencies in helping debt-distressed nations smoothly transition out of default status after successful debt restructuring.
Speaking at the Global Sovereign Debt Roundtable (GSDR) in Washington DC on the sidelines of the IMF and World Bank Spring Meetings, Dr. Weerasinghe shared Sri Lanka’s ongoing debt restructuring experience.
He highlighted that while restructuring is a crucial step toward economic recovery, rating agencies must play a proactive role in reassessing countries’ creditworthiness fairly and promptly once restructuring is completed.
The GSDR, co-chaired by the IMF, World Bank, and G20 Presidency, serves as a key platform for debtor nations and creditors to address debt challenges.
Sri Lanka, a country which has undergone complex debt negotiations, has been an active participant in these discussions.
Governor Weerasinghe’s remarks come at a pivotal time, as Sri Lanka seeks to restore international investor confidence post-restructuring.
His call aligns with broader discussions at the GSDR on improving coordination between debtors, creditors, and financial institutions to ensure sustainable debt solutions, and help restore international investor confidence in countries such as Sri Lanka.
The roundtable also highlighted the newly introduced Sovereign Debt Restructuring Playbook, designed to guide countries through restructuring processes.
The Central Bank’s push for more responsive and supportive rating agency policies could set an important precedent for other debt-distressed economies as well.
Speaking at the GSDR, Treasury Secretary K M M Siriwardana acknowledged the International Monetary Fund (IMF) as instrumental in stabilising Sri Lanka’s crisis-hit economy, as the country prepares to receive its fifth IMF tranche of $344 million in the coming weeks.
Siriwardana reflected on Sri Lanka’s ‘extremely challenging journey’ since its 2022 economic collapse marked by severe shortages, public unrest, and a loss of confidence in governance.
“Seeking IMF support was a strength, not a weakness,” he asserted, crediting the Fund’s policy framework and technical assistance for reversing the economic freefall.
He highlighted over 200 IMF training programmes conducted to strengthen institutional capacity, stating, “The IMF laid the foundation for stability.”
Notably present at the discussion was Peter Brewer, the IMF’s former Senior Mission Chief for Sri Lanka, underscoring the close collaboration between Sri Lanka and the Fund.
Siriwardana traced the roots of the crisis to political instability between 2017–2019, the 2019 Easter attacks, and contentious tax policies, which collectively deepened Sri Lanka’s economic vulnerabilities. “Yet,” he noted, “Difficult reforms are now yielding positive results.”
By Sanath Nanayakkare
Calcey, a global software services provider, has achieved ISO 27001:2013 certification, the international benchmark for Information Security Management Systems (ISMS). This certification highlights Calcey’s strong measures in safeguarding client data and managing security risks.
The rigorous audit covered Calcey’s security protocols, risk management, and operational processes across its offices in Singapore, Sri Lanka, and the U.S.
Mangala Karunaratne, CEO of Calcey Technologies, stated that this milestone underscores their dedication to top-tier data security, reinforcing trust among clients in the U.S., Europe, and the Nordic regions.
The certification ensures compliance with global security standards, benefiting Calcey’s diverse clientele, from startups to large enterprises.
Chinese Dragon Café, a leading Sri Lankan-style Chinese restaurant, has announced that its temporary outlet at Alpine Hotel in Nuwara Eliya will remain open until April 30, catering to both loyal customers and tourists during the Avurudu season.
The seasonal branch has already gained popularity among locals and visitors, offering signature dishes like seafood fried rice, fried noodles, tom yum soup, hot butter cuttlefish, and crispy spring rolls. To enhance convenience, the café provides free delivery within Nuwara Eliya for hotel guests and holidaymakers.
This marks the brand’s first seasonal expansion to Nuwara Eliya, capitalizing on the influx of tourists especially from Colombo, enjoying the cool climate and festive atmosphere.
Heat index, is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Mullaitivu and Vavuniya districts
People have now started to think of themselves as Sri Lankans sans ethnic or religious divisions- PM
Heavy showers about 100 mm are likely at some places in Central, Sabaragamuwa, Uva, Eastern and North-central provinces and in Vavuniya, Mullaittivu and Kurunegala districts.
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