News
Lanka can’t afford fossil fuels but can’t afford to get off them either
(climatechangenews)
Sri Lanka is in turmoil, with fuel and food shortages provoking citizens to storm the presidential palace and send Gotobaya Rajapaksa packing.Reliance on fossil fuel imports is a big factor in the economic crisis. Fuel prices spiking while tourism stayed in the doldrums led to the country running out of foreign currency, not helped by chronic fiscal mismanagement.
That same economic crisis is now making it harder than ever for Sri Lanka to develop a renewable industry, energy experts and business owners say.On 31 March, protesters marched on president Gotabaya Rajapaksa’s private residence. Things escalated until on 9 July, they stormed the presidential palace, prompting Rajapaksa to resign and flee to Singapore. He appointed an ally, Ranil Wickremesinghe, as his successor and this week a Sri Lankan official said Rajapaksa himself would return to the country, dampening hopes of substantive political change.
Sri Lanka’s economic crisis stems from consistently importing more than it exports. As the country pays in foreign currency (largely US dollars) for imports and sells in foreign currency for exports, its central bank’s foreign currency reserves have been depleting.The government didn’t have enough Sri Lankan rupees to pay for imports so prices of products, including essentials like food and fuel, shot up.
Between 1990 and 2000, Sri Lanka’s net energy imports as a percentage of total energy use doubled from 20% to 40% and has stayed around the same ever since. In 2021, the country spent $3.7bn on imports of oil and coal. Sri Lanka has no significant fossil fuel reserves. It does, according to the World Bank, have good potential for solar and wind power. Yet it has failed to develop either technology. It gets around a third of its electricity from imported oil, a third from imported coal and a third from domestic hydropower.
Lankan journalist Rathindra Kuruwita said this failure to develop renewables was largely the fault of the island’s state-owned monopoly utility provider, the Ceylon Electricity Board.
“Most of the engineers are in cahoots with the power plant mafia,” he said. This “mafia” is not an organised crime mob, but a network of people with a vested interest in fossil fuels: power plant operators, diesel distributors and coal importers.
The Sri Lanka Sustainable Energy Authority has also been slow in approving licenses for renewable projects, he said. If those projects had been approved, Kuruwita added, “we wouldn’t be in this mess”.
When an electrical engineer named Champika Ranawaka became energy minister in 2015, he tried to reform the CEB, Kuruwita said. He lasted eight months in the role.Now the country has run out of foreign currency to import the amount of fossil fuels its infrastructure needs. There are shortages of electricity, of cooking gas and of fuel for vehicles and for the diesel generators used as back-up power.
Before terrorist attacks in 2019 and the coronavirus pandemic, tourism provided 6% of Sri Lanka’s GDP. There were hopes it would rebound this year and bring in much needed foreign currency.But Nimesh, who works in the Atha resort in central Sri Lanka, told Climate Home that tourists are finding it hard to find vehicles to transport them as drivers are having to queue for days to get fuel.On top of that, small hotels and restaurants are suffering from power cuts. Larger hotels have generators but are finding it difficult to find fuel for them.
“These power cuts and fuel shortages are really affecting the tourism industry,” he said.
Lien Wysmans runs a backpackers’ hostel on Arugam Bay beach in the island’s east. She told Climate Home: “There are power cuts as well of about four or five hours a day… I’m freaking out”.
Although Wysmans says her guests don’t mind the power cuts, others are less tolerant. A March 2022 review for a beachfront Airbnb gives one star, citing “power cut- not their fault but created problem for us” among the reasons.A Financial Times reporter who visited the country recently said: “Anyone considering a trip to Sri Lanka this year or next also faces a difficult choice. Avoid the country entirely and the risk of a severely impacted and unexpectedly expensive trip, or support a vulnerable economy unduly impacted by the pandemic and poor management.”
Electric vehicles (with enough electricity) and rooftop solar panels would solve many of the tourist industry’s problems. But rolling them out requires money which most Sri Lankan citizens and their government don’t have.
Wysmans said solar panels “would be definitely a very good solution”. She can’t install them as she is renting the property but, even if she owned it, she said that the return on investment is 25 years. “It’s economically not beneficial for anybody because it’s just too expensive,” she said. “Also, the government is not really supporting.”
Nimesh said: “Solar panels are a great solution but the problem is government can’t afford to give financial support to invest in these projects due to the critical financial crisis that our country is facing”.
There are international schemes to help, like a Asian Development Bank funded scheme to provide low-interest loans for rooftop solar power. But these are on a small scale.
Speaking from her native Belgium, Wysmans said: “Sri Lanka has a really great opportunity for being a self-sustainable renewable energy island but the corruption is stopping all of it.”
“They’ve got the sun, they’ve got the water, they’ve got the wind, they just need to do it,” she added, “but if you have a corrupt government who wants to bring oil in where they can put half the money in their own pocket, it’s never going to happen.”
The Sustainable Energy Authority did not reply to a request for comment.
News
CEBEU warns of operational disruptions amid uncertainty over CEB restructuring
The Ceylon Electricity Board Engineers’ Union (CEBEU) yesterday warned that uncertainty surrounding the ongoing restructuring of the Ceylon Electricity Board (CEB) had forced many employees to refrain from performing their regular duties, raising concerns about potential disruptions to electricity sector operations.
The engineers’ union said the current situation had arisen due to what it described as either deliberate actions or extreme negligence in implementing the restructuring process, which has created significant confusion among staff who previously served under the CEB.
According to the union, although the state power utility has been formally restructured and new companies established, a large majority of former CEB employees have yet to receive official appointment letters, confirming their positions in the newly formed entities.
“The reality is that the institution, previously known as the Ceylon Electricity Board, no longer exists in its earlier form, yet most employees, who served under it, have not been issued proper appointment letters, or related documentation, assigning them to the newly established companies,” the CEBEU said.
The union said that while some workers had been issued “assignation letters”, those documents merely indicate the institution to which an employee has been attached and do not clearly define employment conditions, responsibilities, authority, or reporting structures.
“As a result, employees currently lack the necessary legal framework confirming their employment status, their duties, the authority under which they operate, and who they are accountable to within the new institutions,” the CEBEU said.
The engineers’ union emphasised that the current crisis was not created by employees but was the direct result of, what it called, shortsighted and questionable actions taken by those responsible for implementing the reforms.
It also expressed concern that the relevant Minister, appointed through the National List, had failed to hold meaningful discussions with employees, despite having previously advocated strongly for workers’ rights.
The union said trade union action had been launched only after months of unsuccessful attempts to resolve the issues through verbal requests and written communication with the authorities.
“Despite repeated appeals made over several months, there has been no satisfactory response. Decisions appear to have been taken under the assumption that a government with a strong mandate can proceed without proper consultation,” the union said.
However, the CEBEU stressed that employees engaged in essential operations—including power generation, transmission, and distribution—continue to work in order to ensure electricity supply to the public.
“These staff members are continuing their duties under considerable risk to prevent major disruptions to the electricity supply,” the union noted.
Nevertheless, the union warned that the prevailing uncertainty could affect certain operational activities, and restoration work following breakdowns may take longer than usual.
The CEBEU appealed to the public to understand the situation and expressed regret for any inconvenience that may arise.
“We request the public to understand the situation and cooperate with us during this difficult period. We sincerely regret any inconvenience that may be caused,” the union added.
By Ifham Nizam
News
Remittances up compared to last year before outbreak of war, but the economic picture is not rosy
Sri Lanka Bureau of Foreign Employment (SLBFE) yesterday said that foreign remittances, during January and February this year, had been 32% higher than the corresponding period in the previous year.
According to a press release issued by the SLBFE, Sri Lanka received Rs 1,480.1 mn during January and February this year, whereas in 2025 the country received Rs1,121 mn during the corresponding period. During the first two months of this year, 47,819 Sri Lankans had left the country for employment abroad.
However, Prof. Priyanga Dunusinghe has warned that Sri Lanka could face a catastrophic situation due to a rapid and sharp drop in revenue caused by the escalating Gulf war. Fighting erupted on February 28 following a joint US-Israel attacks on Iran.
Appearing on Derana ‘Big Focus’ on Monday, the Professor in Economics in the Department of Economics, and Head – Department of Information Technology, University of Colombo, Dunusinghe said that that the drop in remittances from the Middle East, as well as exports, should be examined against the backdrop of runaway oil prices.
News
The Netherlands alleges Russian Embassy interfering in World Press Photo Exhibition
The Netherlands Embassy in Colombo has accused the Russian Embassy of trying to limit freedom of expression and right to know in Sri Lanka. The Embassy yesterday issued the following statement: “The Embassy of the Kingdom of the Netherlands’ attention has been drawn to the attempts by the Russian Embassy in Colombo to deny the people of Sri Lanka’s right to information and freedom of expression by demanding photos related to “Russia’s war of aggression” on Ukraine be removed from the World Press Photo exhibition, currently on display in Sri Lanka.
The 2025 edition of the World Press Photo Exhibition was officially opened by Dr Kaushalya Ariyaratne, Deputy Minister of Mass Media, and Wiebe de Boer, Ambassador of the Kingdom of the Netherlands on February 27, 2026, at One Galle Face. The same exhibition will be held in Kandy from 13 to 17 March 2026 at Sahas Uyana.
The Ambassador of the Russian Federation to Sri Lanka visited the exhibition during the weekend of March 7 and 8 and demanded the photographs, related to “Russia’s war of aggression on Ukraine,” be removed from the exhibition, and threatened to stage a protest if the organisers failed to do so.
The exhibition is jointly organised by the Netherlands Embassy, along with the Sri Lanka Press Institute, and the World Press Photo Foundation in the Netherlands.
Continuing the same demand, the Russian Embassy has now approached the Sri Lankan Ministry of Foreign Affairs to remove the said photos from the exhibition in Kandy. The same exhibition is currently underway in the USA and Germany and is showing all around the world in dozens of countries with freedom of expression.
The photos, including the photos that the Russian Embassy in Colombo wanted to hide from the Sri Lankan citizens, are also available online on the World Press Photo website for free for anyone to access them.
The Embassy of the Kingdom of the Netherlands deplores the attempts by any party to compromise people’s right to know and right to freedom of expression. It also amounts to a violation of the host country’s sovereignty if an Embassy attempts to decide what and which content its citizens should see and not. While we, as the Embassy of the Kingdom of the Netherlands, assure the Sri Lankan public that as our commitment to protect press freedom and respect for editorial integrity, we will continue the exhibition in Kandy with its full content without censoring any photos of the exhibition.
The exhibition is open to the public, free of charge, from 10.30am on Friday, March 13, till March 17, at Sahas Uyana in Kandy.”
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