News

Power Minister assures retention of competitive bidding process even after amending Electricity Act

Published

4 years ago

2022/06/10

By Saman Indrajith

Minister of Power and Energy, Kanchana Wijesekera on Wednesday told Parliament that the proposed amendments to the Sri Lanka Electricity Act would not lead to the abolition of the competitive bidding process for procurement of electricity.

The Minister said that they were only trying to make the implementation of sustainable energy products easier subject to approval by the Sustainable Energy Authority.

“There is also a misconception that the changes to the Act allows various companies including foreign ones to increase electricity prices according to their whims and fancies,” he said.

Minister Wijesekera said that even after the amendments, it was the Ceylon Electricity Board (CEB) that had the authority to determine the price of a unit of electricity.

“The CEB has a pricing formula to buy electricity. The formula is implemented by officials at CEB, the Ministry and Sustainable Energy Authority. The government and the Cabinet can’t decide the rate at which we would buy energy from the supplier”, he said.

In the past the CEB had done its best to thwart renewable energy projects, the minister said. The existing act helps the CEB to place obstacles for those willing to invest in renewables, he said.

There were discussions to change the act since August 2013, he said. However, certain powerful sections of the CEB had been opposed to changes that would reduce their powers.

“Only some engineers are opposed to the amendments. These are people who pushed for thermal power plants and thwarted attempts to boost renewables. The CEB last week asked me to increase electricity tariffs by 300 percent. The cost of electricity production is over 755 billion rupees a year. Our income is 250 billion rupees a year. There is a gap of 500 billion rupees. We pay tremendous amounts of money for diesel and to pay officials. The salaries of officers increase by 25 percent, once every three years.

“Do we need to pay for these unnecessary cost overruns by placing extra burden on the people? No, we must do this by reducing cost”, he said.

The Minister said that he would not present proposals to increase electricity tariffs, unless the CEB took steps to boost renewable energy that is low cost and clean.

Minister Wijesekera said that it was CEB officials who had entered into agreements with various power suppliers. The cost of a unit of electricity at Lakvijaya power station is 41.80 rupees, it is 80.50 rupees at Sojitz Kelanitissa Pvt Ltd, 61.56 rupees at Power Plant B, Sapugaskanda, 66.42 rupees at Power Plant A, Sapugaskanda, 62.14 rupees at the Barge, 65.52 at Uthuru Janani, 68.20 at west Coast, 98.40 rupees at Kelanitissa Combined Cycle, 137.60 at Kelanitissa G-T7, and182.40 at Kelanitissa Frame 5, the Minister said.

“The unit of electricity produced using renewable sources costs 16.80 rupees. Solar is bought at 22.50 rupees. A unit of electricity through hydro costs 4.35 rupees. Don’t take steps to thwart renewable energy. Right now, the energy permit is given a year after the tentative approval even if you own the land where the project will be implemented,” he said.

The Minister said that 800 million dollars was needed to purchase coal for the next year. The government spent 100 million dollars a month for diesel, needed to produce thermal power.

“We will produce more than what the country needs through these power projects. I think we must connect our electricity grid with India. We will be selling electricity to India soon,” he predicted.

Meanwhile, Opposition Leader, Sajith Premadasa said that they were supportive of renewable power and wanted to empower domestic energy producers. However, the real objective of the amendments to the Electricity Act was to allow certain foreign companies to monopolise the renewable energy sector, he asserted.

Those opposed to the amendments to the Act were not against boosting renewable energy production, Premadasa said. They were only opposed to the attempts made by the government to take away the competitiveness of the procurement process, he said.

“We will end up letting these foreign companies dominate the industry and pay them in dollars. And we will pay them double of what we pay domestic producers. By amending Section 43 of the act, we will only take away competitiveness. It will facilitate the monopolization of renewable energy,” he said.

Meanwhile, Ven. Aturaliye Rathana Thera said that even countries that had vast oil and coal reserves were shifting towards renewable energy sources. Sri Lanka had not attempted to exploit solar and wind power, which are abundant here, he said. The United Nations Development Programme allocates about 100 million US dollars a year to support such projects, but Sri Lanka had never tried to access those funds, the thera said.

The President in his election manifesto said that Sri Lanka needed to produce 70 percent of electricity through renewable energy sources, he said.

“Now, we get 65 percent of our power from diesel and coal. Nothing has been done since the President came to power. Has the CEB made long term generation plans based on the President’s vision? Did the government not see this crisis coming? A lot of people tried to warn the government. Instead of amending bits and pieces of the Act, the government must present a national policy on electricity, which it promised to do,” Rathana Thera said.

The Thera added that the Prime Minister had promised to establish a committee of experts and representatives of all parties when making important decisions. That had not been done with regard to changing the important Act, he said.

The Thera also said that he was supportive of renewable energy. However, there was reason to believe that the amendments to the Act were aimed at creating a monopoly over solar and wind power for the benefit of a foreign company.

“Not only will we keep on bleeding dollars, but we will also lose energy sovereignty. We need to amend the Act, but if you are trying to encourage unsolicited bidding under the guise of promoting renewable energy it will only have disastrous consequences. There is no problem with allowing unsolicited bids from investors who want to produce less than 25 megawatts through renewable energy”, he said, adding that there were many Sri Lankans abroad and they would send solar panels and batteries to their homes if the process was facilitated.

“The government will have to bear little cost. Let’s encourage rooftop solar panels, if most people set up these systems, we won’t have any problems. We don’t need to overthink this. We don’t need to try to create massive companies. We can produce a gigawatt of energy through rooftop solar with ease and if we can do this, we won’t have a crisis.”

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National SME Strategy Framework 2026 is critical because it brings policy consistency and stability to the sector – PM

Published

14 hours ago

2026/05/15

Priyan

The Prime Minister Dr. Harini Amarasuriya participated in the 2nd day of the dialog on “National SME Strategy Framework 2026” organized by the Ministry of Industry and Entrepreneurship Development held on Thursday [14th of May].

The official launch of the “National SME Strategy Framework 2026” to empower Small and Medium Enterprises (SMEs), was held on Wednesday (13) under the patronage of the Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, and Deputy Minister Chathuranga Abeysinghe.

The Framework has been developed by the Industry and Entrepreneurship Development Ministry, with input from the SME Advisory Committee and key system stakeholders in line with the national manifesto of “A Thriving Nation – A Beautiful Life.”

This framework creates the opportunity for the entrepreneurs to easily register their businesses, access modern technology, and obtain specialized financial facilities along with the advisory services that directly support the growth of entrepreneurs, departing from the traditional method free of charge.

The second day marks the dialog on the “National SME Strategy Framework 2026” focusing on the discussion into implementation and strategy to action featuring series of panel discussions.

During the event National SME Strategy Framework 2026 was presented to the Prime Minister by the Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe.

The Prime Minister stated that the country is implementing its transformative agenda during a period of global instability and disruptive global context stressing the importance of adaptation, sustainability and building resilience, particularly within the Small and Medium Enterprise (SME) sector in such context.

Underscoring the importance of the SME policy framework, the Prime Minister further stated that the government’s role is to ensure consistency, stability and collaboration within the sector.

The event was attended by the Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, Deputy Minister Chathuranga Abeysinghe, Australian Deputy High commissioner to Sri Lanka, Ms. Ruth Baird and Secretary to the Minister of Industry and Entrepreneurship Development Mrs. J.M. Thilaka Jayasundara and develop and develop partners and representatives from business community.

[Prime Minister’s Media Division]

News

Opposition accuses govt. of weaponising tax laws

Published

15 hours ago

2026/05/15

Thilina Walpola

Sajith

… calls for modernising Inland Revenue Dept.

Opposition and SJB Leader Sajith Premadasa yesterday criticised the government’s proposed amendments to the Inland Revenue Act, claiming that a new provision in the draft legislation could unfairly lead to criminal action against ordinary citizens and small business owners over administrative tax-related matters.

In a statement, Premadasa said the public was “not angry about paying taxes” but was frustrated by what he described as unfair treatment under the proposed law.

He alleged that Section 185A of the proposed bill could make delays in filing tax returns or registration-related issues criminal offences, warning that struggling small-scale entrepreneurs could be treated in the same manner as individuals deliberately evading millions of rupees in taxes.

“That is wrong,” the Opposition Leader said.

Premadasa further accused the government of resorting to criminal action against people instead of reforming and modernising the Inland Revenue Department and simplifying tax compliance procedures.

He also questioned the government’s commitment to tackling corruption and financial crimes, asking why stronger measures had not been taken against money laundering, financial fraud and those accused of misappropriating public funds.

“Go after the corrupt. Punish real fraudsters. But do not weaponise the law against the common man,” he said.

Premadasa added that the Opposition would continue to resist legislation that undermined “fairness, proportionality, and the constitutional rights of the people.”

News

Floods, landslides affect 3,475 people

Published

15 hours ago

2026/05/15

Thilina Walpola

Adverse weather conditions prevailing across the country have severely affected 3,475 persons belonging to 1,113 families in seven districts, according to the Disaster Management Centre (DMC).The DMC said 1,310 individuals from 489 families had been relocated to eight temporary safety shelters due to the deteriorating weather situation.

The DMC also confirmed one death from the Koralepatthu South area in the Batticaloa District.

As of 10 am yesterday (14), a total of 88 houses and one business establishment had sustained partial damage as a result of the adverse weather conditions.

Authorities have urged the public in vulnerable areas to remain vigilant and follow safety instructions issued by disaster management and local officials as heavy rains continue to affect several parts of the country.

Meanwhile, the National Building Research Organisation (NBRO) yesterday extended landslide warnings for several districts across the country due to the prevailing adverse weather conditions.

According to the NBRO, Level 2 landslide warnings have been issued for Neluwa in the Galle District; Agalawatte, Baduraliya, Matugama, Horana and Walallawita in the Kalutara District; and Ratnapura and Pelmadulla in the Ratnapura District.

Level 1 landslide warnings remain in effect for several areas in the Badulla, Galle, Kalutara, Kandy, Kegalle, Kurunegala, Matale, Monaragala, Nuwara Eliya and Ratnapura districts.

The warned areas include Bandarawela, Passara and Hali Ela in Badulla; Thawalama, Elpitiya and

Niyagama in Galle; Ingiriya and Bulathsinhala in Kalutara; and multiple Divisional Secretariat areas in the Kandy District, including Poojapitiya, Deltota, Udunuwara and Pathahewaheta.

Warnings have also been issued for Bulathkohupitiya, Mawanella, Kegalle, Aranayake, Yatiyanthota, Warakapola and Rambukkana in the Kegalle District; Ridigama in Kurunegala; Rattota, Naula and Ambanganga Korale in Matale; and Wellawaya, Badalkumbura and Bibile in Monaragala.

In the Nuwara Eliya District, the warning covers Norwood, Ambagamuwa Korale and Kotmale, while Eheliyagoda, Kalawana, Kuruwita, Godakawela, Kiriella and Ayagama in the Ratnapura District have also been placed under alert.

The NBRO said the warnings were extended in view of further rainfall forecast by the Department of Meteorology and urged residents in vulnerable areas to remain vigilant and follow instructions issued by authorities for their safety.

Meanwhile, the water levels in several major river basins that had risen due to recent heavy rainfall are now receding following a decline in rainfall over the past 24 hours, the Department of Irrigation said.

Director of Irrigation (Hydrology and Disaster Management) L.S. Sooriyabandara said water levels in the Nilwala River, Gin Ganga, Kalu Ganga and Attanagalu Oya basins were showing a downward trend as rainfall eased.

He noted that water levels were declining in most areas, with the exception of the Millakanda area in the Kalu Ganga basin.

However, Sooriyabandara warned that the current improvement could be temporary, as the Department of Meteorology has forecast further rain in the coming days.

According to the Department, 18 of the country’s 73 major reservoirs are currently spilling over, while another 18 medium-sized reservoirs are also discharging water.

He stressed that the release of water does not indicate a major flood situation at present, but urged the public to remain vigilant and follow future advisories issued by authorities.

By Norman Paliahwadane and Chaminda Silva