News
Loss suffered by country due to pandemic Rs.1,600 billion so far this year
By Saman Indrajith
Finance Minister Basil Rajapaksa told Parliament yesterday that the country had suffered a revenue loss of Rs 1,600 billion due to the COVID-19 pandemic so far in the year.
Participating in the debate on regulations imposed under the Financial Bill and Export Import Control Bill, the Minister said that revenue from the Inland Revenue Department, Customs and Excise Department had gone down drastically owing to the lockdown.
He said the government had also lost revenue from the Customs Department due to the suspension of vehicle imports for more than one and half years. The decision to suspend vehicle importation had been made to save foreign exchange.
Minister Rajapaksa said that the VAT revenue that should have been added by the Inland Revenue Department had decreased by around 75 per cent.
The Minister said that there had been a decrease in foreign loans too and added that Sri Lanka had to purchase around 80 percent of COVID-19 vaccines on ready cash.
“Total revenue has dropped drastically compared to expenditure.
This is not totally due to the pandemic as Sri Lanka’s state expenditure has exceeded the revenue for centuries,” he said.
“We have decided to use foreign assistance with utmost diligence and will only work with institutions such as the World Bank and Asian Development Bank and will only go for concessionary loan schemes. Sri Lanka will not agree to political conditions any donor would impose when it comes to external borrowings,” the Minister said.
He said that the amount of foreign reserves too had decreased, and the government had commenced producing some medicine in the country to prevent the drain of foreign reserves and started producing the country’s saline requirement on Sept 1.
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Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund
Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.
Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.
The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.
The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.
Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.
News
CEB demands 11.57 percent power tariff hike in first quarter
The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.
According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.
Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.
The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.
In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.
The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.
The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.
Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.
By Sujeewa Thathsara ✍️
News
Health Minister sends letter of demand for one billion rupees in damages
Ondansetron controversy
Minister of Health and Mass Media Dr Nalinda Jayatissa has sent a letter of demand for Rs. 1 billion in damages from YouTube content creator Dharmasri Kariyawasam, accusing him of disseminating false and defamatory material linking the Minister to the importation of Ondansetron and inciting public unrest.
The notice, sent through the Minister’s lawyers, states that investigations are currently under way into 10 medicines, including Ondansetron Injection, manufactured by India-based Maan Pharmaceutical Limited.
Ondansetron Injection was among nine injectable drugs recently suspended by the National Medicines Regulatory Authority (NMRA) following reports of patients administered with the drug suffering adverse complications.
Despite the ongoing investigations, Kariyawasam allegedly aired a widely viewed programme on his YouTube channel titled “The hidden story of the Indian drug that claimed lives, Mayor Balthazaar’s relative, and Minister Nalinda’s cover-up.”
According to the letter of demand, the programme falsely portrayed Minister Jayatissa as being directly responsible for importing the drug, colluding with the supplier, and attempting to conceal the issue, while depicting him as indifferent to public suffering.
The Minister’s lawyers maintain that these allegations are entirely false and defamatory, citing passages in which Kariyawasam allegedly accused Jayatissa of lying about the supplier, concealing facts related to PTC Medicals (Pvt) Ltd., the actual importer, and showing a lack of concern over deaths purportedly linked to the drug.
The programme also claimed links between the directors of PTC Medicals and family members of Colombo Mayor Vraîe Cally Balthazaar, implying political favouritism.
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