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

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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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Prison mayhem leaves at least 26 dead; five officers killed in revenge violence

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Police and STF personnel rushing an injured prison officer to an ambulance after yesterday’s clash at the Negombo Prison.

At least 26 people, including five prison officers and 20 inmates, have been confirmed dead following violent unrest at Negombo Prison, hospital sources said yesterday, as authorities struggled to restore full control over the facility.

According to unconfirmed reports the prison officers were killed by rioters yesterday morning,  in retaliation, and weapons carried by those officers were grabbed by them.

Negombo General Hospital Director Consultant Dr. Pushpa Gamlath said nearly 100 injured persons had been admitted, following the clashes, and eight of the critically wounded had been transferred to the National Hospital, in Colombo, for further treatment.

The violence, which initially broke out on Sunday (5) between remand prisoners and convicted inmates, left two inmates dead and 38 others injured before being temporarily brought under control.

However, tensions flared again on Monday (6), with prison officials reporting renewed unrest inside the facility despite earlier assurances that the situation had stabilised.

Police said the initial confrontation was triggered by a dispute linked to the exposure of an alleged drug trafficking network, operating within the prison, and was reportedly orchestrated by a drug trafficker, identified as Suresh, who is said to have links to an underworld figure known as ‘Booru Moona’.

The violence rapidly escalated, with female inmates staging a protest on the Prison roof in support of those involved in the clashes, while relatives gathered outside demanding information on detainees. Police later facilitated visits for selected family members to hospitalised inmates.

The Negombo Prison, which houses around 1,800 remand and convicted inmates, descended into widespread disorder as rival groups clashed, with reports indicating that the violence later spread beyond the initial confrontation.

Authorities said rioting inmates had allegedly seized firearms during the renewed unrest on Monday, prompting heightened security measures.

The Sri Lanka Air Force deployed drones for aerial surveillance and a Bell 412 helicopter to monitor the situation, while additional military personnel were sent to reinforce security around the prison.

Prisons Department spokesperson A.C. Gajanayake said a special investigation team had been appointed, under the direction of the Commissioner General of Prisons, to probe the incident, while a separate police investigation is also underway.

Justice Minister Harshana Nanayakkara told The Island that he had called for a detailed report on the disturbances.

By Norman Palihawadane

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Cleaner, cheaper electricity gathers momentum with rapid progress in 50 MW Mannar wind power project

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Sri Lanka’s drive towards cleaner and cheaper electricity gathered fresh momentum with the reported rapid progress in the 50 MW Mannar Wind Power Project, which is expected to produce the lowest-cost wind-generated electricity in the country’s history while saving billions of rupees in annual fuel imports.

The Ministry of Energy announced that the first wind turbine for the project had already arrived in the country, while the remaining turbine components have reached the Port of Trincomalee and are currently being unloaded, signalling a major milestone in the construction of one of the country’s key renewable energy ventures.

The project, inaugurated by President Anura Kumara Dissanayake, in January this year, is expected to become a cornerstone of the government’s strategy to transform Sri Lanka’s electricity sector by expanding renewable energy generation and reducing dependence on imported fossil fuels.

According to the Ministry, electricity generated by the Mannar wind farm will be purchased at USD 0.0465 (approximately Rs. 14.37) per unit, making it the lowest tariff ever secured for wind-generated electricity in Sri Lanka.

Energy experts say the competitive tariff demonstrates the growing economic viability of renewable energy and could help stabilise future electricity prices.

The Ministry also estimates that once the wind farm is connected to the national grid, Sri Lanka will save approximately Rs. 4.7 billion annually by reducing the import of fossil fuels required for thermal power generation, easing pressure on the country’s foreign exchange reserves.

The Mannar project is expected to support the government’s ambition of substantially increasing the contribution of renewable energy to the national electricity mix, by 2030, while helping Sri Lanka move towards its long-term goal of achieving net-zero carbon emissions by 2050.

Hayleys Fentons PLC, selected through an international competitive bidding process, is responsible for the installation and maintenance of the wind turbines.

The National System Operator (NSO), operating under the Ministry of Energy, will oversee the integration and management of electricity generated by the project within the national grid.

By Ifham Nizam

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Tech-enabled trafficking, fake foreign jobs pose growing threat, MPs told

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Opposition Leader Sajith Premadasa speaks to Public Security and Parliamentary Affairs Minister Ananda Wijepala during a special awareness programme on human trafficking held in the House recently

Human trafficking has become increasingly sophisticated, with deceptive overseas employment offers, fraudulent recruitment practices and technology-enabled recruitment emerging as major threats that require a coordinated national response, Members of Parliament were told at a special awareness programme held in the House recently.

Addressing the programme, Secretary to the Ministry of Defence and Chairman of the National Anti-Human Trafficking Task Force, retired Air Vice Marshal Sampath Thuyacontha, said trafficking in persons had evolved significantly over the years and was now closely linked to organised transnational criminal networks.

He warned that fake foreign employment opportunities, fraudulent recruitment agencies, online recruitment platforms, forced labour, sexual exploitation and, in some instances, the use of victims for forced criminal activities had become key challenges confronting authorities.

The awareness programme organised jointly by the National Anti-Human Trafficking Task Force of the Ministry of Defence and Parliament, was aimed at strengthening legislators’ understanding of emerging trafficking trends, the legal and policy framework governing the issue, and the role of Parliament in strengthening anti-trafficking legislation.

MPs were also briefed on the National Strategic Action Plan on Combating Human Trafficking (2026-2030), which focuses on preventing trafficking, identifying and protecting victims, strengthening the criminal justice response and improving coordination among State institutions.

Special emphasis was placed on the growing use of digital platforms for recruitment, deceptive migration practices, labour exploitation and the coercion of victims into criminal activities.

The programme featured presentations by Additional Solicitor General Haripriya Jayasundara, PC, and State Counsel Sajith Bandara of the Attorney General’s Department.

The event, held under the patronage of Deputy Chairperson of Committees Hemali Weerasekara, was attended by Opposition Leader Sajith Premadasa, Public Security and Parliamentary Affairs Minister Ananda Wijepala, Deputy Defence Minister retired Major General Aruna Jayasekara, Members of Parliament and senior officials of the Ministry of Defence, the National Anti-Human Trafficking Task Force and Parliament.

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