News
Obtaining 02 tug vessels on rental for the Sri Lanka Ports Authority
As per the cabinet decision taken on 10-10-2022, international competitive bids were invited to procure 80 Ton Bollard Pull Tug one vessel for the Sri Lanka Ports Authority for the operation at the Colombo Ports.
Four (4) bids have been received for that purpose, and the procurement committee appointed by the Cabinet of Ministers has recommended awarding the bid to the lowest responsive bidder.
In the meantime, due to the imposition of the Value Added Tax Act of 01-01-2024, the cost of procurement has increased with the addition of tax to the relevant procurement cost. Even though discussions were made with the recommended supplier to obtain the said tug vessel on a loan basis, the said procurement process has been discontinued due to the disagreement with the supplier.
Subsequently, international competitive bids have been invited to obtain 02 vessels of the 80 ton bollard pull tug for rental and 03 bids have been received for that purpose. Although discussions have been made with the lowest responsive bidder to obtain a deduction in price in an advantageous manner for the Sri Lanka Ports Authority, the bidder has disagreed to provide the considerable price deduction.
In the meantime, since the necessity of the tug vessels should be reassessed on the progress of the completion of the construction of the new terminal at the Colombo port, the management of the Sri Lanka Ports Authority has made a request to cancel the aforesaid procurement process.
Accordingly, the Cabinet of Ministers has approved the proposal presented by the Minister of Transport, Highways, Port, and Civil Aviation to act in the following manner, taking into consideration that the construction of the new terminal is scheduled to be completed during the period between mid to late 2025.
• to complete the procurement process implemented to obtain 02 vessels of 80 ton bollard pull tug on rental basis for the operation conducted by the Sri Lanka Ports Authority.
• to commence new procurement process to obtain 02 vessels of 70 ton bollard pull twin azimuth stern drive harbor tug which are required for the operations of new terminal scheduled to be started mid term of the year 2025.
During an operation conducted in the dark hours of 01 Jan 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 11 Indian fishermen while they were poaching in Sri Lankan waters, off Kovilan of Kareinagar, Jaffna.
The Northern Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the Northern Naval Command were deployed to drive away those Indian fishing boats from island waters off Kovilan.
Meanwhile, compliant boarding made by naval personnel resulted in the seizure of one Indian fishing boat and apprehension of 11 Indian fishermen who continued to engage in illegal fishing in Sri Lankan waters.
The seized boat (01) and Indian fishermen (11) were handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.
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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.
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 ✍️
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