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
“Badhu Shakthi 2026” National Tax Week begins
The inaugural ceremony of “Badhu Shakthi 2026” (“බදු ශක්ති 2026”) National Tax Week, organised by the Revenue Administration Reform and Modernisation Unit of the Presidential Secretariat with the objective of strengthening State revenue generation and accelerating the country’s future development process, was held on Monday (06) morning at the Presidential Secretariat under the patronage of Speaker Dr Jagath Wickramaratne.
“Badhu Shakthi 2026” is a year-round national programme aimed at transforming the negative public perception of taxation into a positive one while fostering a culture of voluntary tax compliance. To mark its commencement, a National Tax Week will be observed across the island from 6 to 10 July.
A nationwide media and public awareness campaign will be conducted in parallel, including the distribution of leaflets and a range of promotional activities designed to educate the public directly and encourage greater tax compliance.
Addressing the inaugural event, Speaker Dr Jagath Wickramaratne stated that “Badhu Shakthi 2026” is not simply a tax collection campaign but a national initiative aimed at cultivating responsible citizens who love their country.
Further elaborating, the Speaker said:
“Today marks a significant milestone in our country’s future development and economic stability. The strength and sustainability of any sovereign nation depend on its economic independence. Taxation is one of the key instruments for strengthening State revenue and driving national development.
However, taxation has long been viewed negatively by many people. That perception was largely shaped by those responsible for collecting taxes and by successive administrations. When people develop a sense of national responsibility, their attitudes begin to change. For many years, taxes were regarded as a burden. History has shown us that tax evasion occurred on a significant scale, and it must be acknowledged, however reluctantly, that such practices often enjoyed political patronage.
In the past, the public had little understanding of how their tax contributions were utilised. Taxpayers lacked a clear vision of the benefits derived from the taxes they paid. The present Government has succeeded in changing this situation by fostering a more positive public attitude towards taxation. I wish to pay tribute to all taxpayers who contribute towards the Government’s national development agenda.
Today, people have confidence that the taxes they pay are being put to good use. Expressways, highways and power infrastructure projects are now being implemented using domestic funds. There is a sense of pride among the public that construction of the Kandy Expressway has commenced without obtaining loans from any external source. Cabinet approval has also been granted to commence work on the Kurunegala–Galewela Road.
Today, Sri Lanka has grown stronger as a nation capable of financing development activities through domestic resources rather than relying on foreign borrowing.
In ancient times, the country’s great stupas, reservoirs and irrigation networks were built through the collective contribution of the people. Likewise, Sri Lanka can become a prosperous and developed nation only through collective effort. The taxes collected today are being utilised for the welfare of the people. This was clearly demonstrated when the Government allocated Rs. 500 billion in response to Cyclone Ditwah. In addition, substantial benefits are now being provided to the public through the President’s Fund. Educational assistance is being extended to schoolchildren across every corner of the country. All of these initiatives are being financed through domestic resources.
It is essential that the public are made aware of the real benefits derived from tax revenue and of the development projects being implemented. This will strengthen public confidence in the transparent use of tax revenue. The primary objective of this national programme is to broaden the country’s tax base, improve tax compliance, reduce tax evasion and foster a positive attitude towards taxation. If everyone pays their fair share of taxes, the tax burden borne by others can be reduced.
We do not build a beehive with a single bee. It is created through the collective effort of thousands of bees, making it a remarkable achievement. Likewise, ‘Badhu Shakthi 2026’ is not merely a tax collection campaign. It is a national movement to cultivate responsible citizens who love their country. I extend my sincere appreciation to everyone who has dedicated themselves to making this important initiative a success.”
Labour Minister and Deputy Minister of Finance and Planning Anil Jayantha Fernando:
Labour Minister and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando said that a proper understanding of taxation among citizens would enable Sri Lanka to make greater progress towards economic and social transformation.
He noted that while individuals naturally pursue their own personal goals and aspirations, many of these objectives cannot be achieved in isolation. The success of any society depends on cooperation and collective effort.
He further stated:
“Today, paying taxes has become a much simpler process. As a result, tax collection is now carried out more efficiently and systematically. At the same time, the Government recognises its responsibility to ensure that tax revenue collected fairly is managed prudently and utilised for the benefit of society. If the Government fails to demonstrate sound financial discipline, people will lose confidence and become reluctant to pay taxes. This was evident in the past.
Accordingly, the Government has introduced a tax administration system founded on strong fiscal discipline. We will not tolerate fraud, corruption or waste. If we are to rebuild this country, every citizen must contribute willingly and with a sense of national responsibility. This should not be driven solely by legal obligation. We are confident that the people of Sri Lanka will fulfil this responsibility.”
Deputy Minister of Economic Development Nishantha Jayaweera, Director General of Customs Wimal Liyanagama, Director General of Excise M.B.N.A. Premaratne, and Commissioner General of Inland Revenue Rukdevi Fernando also addressed the gathering.
Among those present were Director General of Public Relations to the President Dharmasiri Gamage, senior officials of the Presidential Secretariat, the Ministry of Finance, Sri Lanka Customs, the Department of Excise, the Inland Revenue Department, as well as taxpayers and other invited participants.
News
Renovated Narahenpita Railway Station reopens to the public under the ‘Dream Destination’ initiative
The Narahenpita Railway Station, which has been upgraded and refurbished under the ‘Dream Destination’ programme to modernise and improve facilities at 100 railway stations across the island through a public-private partnership, was officially reopened to the public on Monday (06) morning under the patronage of Minister of Transport, Highways and Urban Development Bimal Rathnayake.
The ‘Dream Destination’ programme is being implemented as a sustainable initiative by the Clean Sri Lanka Secretariat, under the guidance of the Ministry of Transport, Highways and Urban Development and the supervision of the Department of Railways.
Located on the Kelani Valley Railway Line between the Cotta Road and Kirulapone suburban railway stations, Narahenpita Railway Station had remained without refurbishment for many years and had deteriorated into an unsafe facility with inadequate passenger amenities. The station serves a large number of commuters travelling to and from the Narahenpita area, where numerous public and private sector institutions are located.
Accordingly, refurbishment work commenced on 27 September 2025, under the leadership of the Clean Sri Lanka Secretariat, with MAGA Engineering (Pvt.) Ltd. providing financial support and undertaking construction work, while NIO Engineering contributed technical expertise and related services.
The refurbishment included the construction of a new pedestrian overhead bridge, installation of a new station roof, extension of the second passenger platform, improvements to the sanitation and sewerage systems, internal and external repainting, installation of new passenger seating, renovation of the railway quarters, upgrading of the lighting system, resurfacing of the station access road with asphalt, and a range of other improvements to the station and its surrounding infrastructure.
MAGA Engineering (Pvt.) Ltd. invested Rs. 40 million in the project.
Addressing the ceremony, Minister Bimal Rathnayake said that the primary objective of the ‘Dream Destination’ initiative is to improve railway services by enhancing passenger facilities, while noting that upgrading the railway service’s human resources and physical infrastructure is a major undertaking.
He emphasised that the Government’s plan is to resolve long-standing issues while systematically improving the entire railway network, adding that several measures have already been introduced to enhance the efficiency of public transport services.
The Minister further announced that the initial steps towards introducing an electric railway service will be taken next year as part of the expansion of the railway network. The first phase will focus on the Colombo–Panadura, Colombo–Makumbura, and Colombo–Ragama corridors.
Minister Rathnayake also stated that, alongside improvements to public transport, the Government has initiated a collaborative public-private development process to upgrade related infrastructure. He described the ‘Dream Destination’ initiative as another commitment aimed at improving people’s daily lives, ensuring their safety and securing their future, while also incorporating public views and aspirations.
Among those present were Member of Parliament Attorney-at-Law Lakmali Hemachandra, Deputy Mayor of the Colombo Municipal Council Hemantha Weerakoon, United National Party Colombo Municipal Councillor Sunanda Liyanapathirana, Additional Secretary of the Clean Sri Lanka Secretariat Eng. S. P. C. Sugeeshwara, Additional Director General Kapila Senarath, Director H. P. S. Shantha, Director (Social Sector) Chinthaka Rajakaruna, Assistant Director Nishantha Alwis, Regional Coordinator Shashi Piyushan, General Manager of Railways Ravindra Pathmapriya, Additional General Manager (Operations) Chandrasena Bandara, Deputy General Manager (Traffic) N. J. Indipolage, Chief Engineer (Industries) Priyantha Deegala, Co-Managing Director of MAGA Engineering (Pvt.) Ltd. Megha Kularatne, Chief Executive Director Piyadasa Madarasinghe, Project Coordinator Sanjeewa Peiris, Maradana Station Master H. P. K. Pushpa Kumara, Narahenpita Station Master R. M. Rohana Upul Kumara, Station Master (Operations) Madhusha Gunawardhana, together with senior officials from the public and private sectors and a large gathering of invitees.
News
Bus Sector Clustering Pilot Program on route numbers 170, 177, and 190
Bus transport is the primary mode of transport that fulfills the daily transport requirements of the country, and this service is provided by the Sri Lanka Transport Board and a large number of independent private bus operators.
Many problems have arisen, such as excessive competitiveness, poor adherence to the prescribed timetable, a large number of operators on the roads, unsafe behavior of bus operators,
inconvenience encountered by the passengers, traffic congestion, service imbalance, and inefficient use of resources due to the long-standing operational system in providing public passenger transport services.
As a successful solution to these problems, many countries in the world have introduced a ‘Bus Sector Clustering Program,’ and the bus service is operated under joint management in the same transport corridor or geographical area.
It has been acknowledged that the introduction of bus sector clustering, a methodology that involves the clustering of unified and coordinated bus services on interconnected routes under a single management, could be used to achieve the provision of an effective passenger transport service and the minimization of most operational and social issues, as opposed to the operation of a single operating unit.
Accordingly, taking into account the matters furnished by the Minister of Transport, Highways, and Urban Development, the Cabinet of Ministers has approved the implementation of the
pilot program relevant to the bus sector clustering program on the bus corridor covering routes 170, 177, and 190 initially, with the participation of related stakeholders, and to expand the project further based on the results of the pilot project.
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