News
Mystery surrounds dropping of two vital hydro power projects by CEB during yahapalana rule
35MW Broadlands Hydro power plant expected to be completed next month
By Ifham Nizam
The Power Ministry will go all out to complete the 35MW Broadlands Hydro power plant next month especially to cut down expensive oil fired power generation and avoid emergency power purchases.
The plant was scheduled to be completed last December but it got delayed due to the non- availability of top Chinese experts owing to the pandemic, but, with their return, the Ministry is confident of getting it completed now. Forty five Chinese experts are in the process of completing the plant.
With the commissioning of the plant, the CEB would be able to save more than Rs. 10 million a day. In 2020, CEB losses were Rs. 60 billion as against Rs 85 billion in the previous year, a senior official said.
The 35 MW Hydro Power Plant will generate 125 million units or 125 GWh annually saving Rs. 3.75 billion.
Members of the CEB senior management recently visited inside the 3.5 km tunnel of the 35MW Broadlands Project on the initiative and instructions of the Presidential Task Force led by Senior Presidential Advisor Basil Rajapaksa.
The 35 MW plant over the Kelani Ganga at Kitulgala is constructed by the Chinese government-owned China National Electric Equipment Corporation while consultancy and monitoring are handled by the Central Engineering Consultancy Bureau of Sri Lanka.
The estimated cost of the project is USD 82 million and it is partly financed by a USD 69.7 million loan from the Industrial and Commercial Bank of China. The balance is financed by the Hatton National Bank of Sri Lanka.
The Broadlands project is the last plant in the Lakshapana cascade power station complex on the Kelani River system.
The construction of the plant would prevent some 88,000 metric tonnes of carbon dioxide emissions per year. A unique feature of the project is that it is Sri Lanka’s first large-scale hydro power plant associated with the Clean Development Mechanism established under the International Kyoto Protocol.
Plans have been prepared to construct an energy park, including a hydro power museum in the area expecting the area to become a tourist attraction
Senior engineers of the CEB said that sidelining two important hydro power projects, which were scheduled to go into operation from 2015, were among some controversial proposals included in the Board’s previous Least Cost Generation Plan.
A senior engineer said that the plan to sideline crucial and inexpensive hydro generation projects cost the CEB a minimum of Rs. 5 billion annually as it had to rely on costly thermal power to meet the shortfall in supply. “That resulted in a loss of Rs. 20 and Rs. 25 billion since 2015,” the official said
The Broadlands 35MW and Uma Oya 120MW hydro plants were scheduled to commence operations by the start of 2015, as per the 2011 plan. However, they had been removed from the 2011 and 2013 plans for some unknown reason, an official said.
It had to be investigated, according to senior engineers who pointed out that the delay in constructing hydro plants would have adverse cost implications.
News
Amendment of the Inland Revenue Act No. 24 of 2017
Approval of the Cabinet of Ministers has been granted at their meeting held on 19.05.2025 in order to introduce amendments to the Inland Revenue Act No. 24 of 2017 including the proposed tax revisions to enhance the tax structure paving way for state financial integrity based on revenue.
Accordingly, the revised draft bill has been prepared by the legal draftsman and clearance of the Attorney General has been received.
Therefore, the Cabinet of Ministers has granted approval for
the resolution furnished by the President in his capacity as the Minister of Finance, Policy Planning and Economic Development to publish the aforementioned draft bill in the government gazette notification and subsequently, forward the same to the Parliament for its concurrence.
News
Cabinet nod for “National Mineral Policy” – 2026
The National Mineral Policy was prepared for the first time in the year 1999, and the aforementioned policy has been amended in 2023 to cover matters such as preparing an updated data system related to mineral resources, adding value to the export of minerals, encouraging mineral-related industrialists, extracting mineral resources and managing the environment sustainably, and resolving the issues related to the ownership of the land arising in extracting mineral resources.
The revised National Mineral Policy has been reupdated in line with the manifesto “A Sustainable Resource Utilization – Generation of the Highest Benefit” under the policy statement of the current government” A Thriving Nation – A Beautiful Life.”
Accordingly, the Cabinet of Ministers has approved the resolution presented by the Minister of Industries and
Entrepreneurship to implement the so-formulated “National Mineral Policy—2026.”
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