News
Power sector restructuring completed; new state-owned entities established: Govt.
The NPP governmnet has completed a major restructuring of its power sector, marking one of the most significant transformations in the country’s electricity industry in recent times, Minister of Power and Energy Engineer Kumara Jayakody says.
Addressing directors and senior officials of the newly established institutions in the power sector, while also connecting with employees of the new entities, via Zoom, the Minister said the restructuring programme had now been fully implemented with the objective of strengthening the sector, while ensuring continued state ownership.
Jayakody said the reforms represented a decisive step towards building a stronger and more resilient electricity sector, capable of meeting both present and future challenges facing the country.
“We have completed the restructuring programme that marks one of the biggest transformations in Sri Lanka’s power sector. Let us work together with dedication and commitment, within the newly established institutions, to realise the dream of ‘a prosperous country and a beautiful life,’” the Minister said.
The Minister stressed that the current government had reversed earlier attempts, by the previous administration, to break up the Ceylon Electricity Board (CEB) into 12 entities, as part of a privatisation drive.
Instead, he said, the government had established several new companies that would remain 100 percent state-owned, thereby safeguarding public ownership of the electricity sector, while introducing the structural reforms needed to modernise and strengthen the industry.
According to Jayakody, the restructuring initiative was carefully designed to ensure that the electricity sector would remain under state control while being equipped with the institutional capacity required to address emerging energy demands, technological changes and economic pressures.
He noted that one of the government’s key priorities, during the reform process, had been the protection of employee rights and privileges.
“As a government representing working people, we paid special attention to protecting the rights and benefits of employees. We assure you that the privileges and rights enjoyed by you as CEB employees will continue without even the slightest reduction when you join the new institutions,” the Minister said.
He added that the government had also taken steps to address long-standing grievances raised by employees and trade unions in the power sector.
Jayakody said many of the demands made by workers over the years had now been fulfilled, including some that had not yet been formally requested by unions or employee representatives.
“Many of the issues raised by workers in the past have now been resolved. In some instances, the government moved to address concerns even before they were formally requested by employees or trade unions,” he said.
The Minister also noted that throughout the restructuring process, the government had maintained a regular dialogue with trade unions representing workers in the electricity sector.
He said the authorities had held discussions with union representatives on several occasions and listened to their concerns before finalising key aspects of the restructuring programme.
Jayakody emphasised that the establishment of the new institutions represented a significant milestones in the development of Sri Lanka’s electricity sector.
“At this important moment, when a major step is being taken towards the development of the country’s power sector, I invite all of you to treat this as a national mission and make the fullest use of the opportunities available within these new institutions,” he said.
The Minister also expressed his appreciation to all those who had contributed to the successful completion of the restructuring programme.
He said the transformation of the electricity sector had required the cooperation and commitment of many stakeholders, including officials, employees and policymakers.
Energy sector analysts say the restructuring of the power sector is expected to play a critical role in improving efficiency, governance and long-term planning in electricity generation, transmission and distribution.
Sri Lanka’s electricity industry has faced several challenges in recent years, including rising fuel costs, supply disruptions and the need for increased investment in renewable energy and grid infrastructure.
Officials say the new institutional framework is expected to enhance operational efficiency while ensuring that the strategic assets of the electricity sector remain under state ownership.
The government maintains that the restructuring programme will ultimately strengthen the country’s energy security while supporting broader economic development.
By Ifham Nizam
News
Burning of low-grade coal at N’cholai plant increases pollution: Parliament
Parliament yesterday (30) said the use of inferior quality coal at Norochcholai Lak Vijaya coal-fired power plant caused environmental pollution.
The Opposition has accused the Energy Ministry of importing low quality coal and the CEB has directly blamed the developing crisis in coal imported from South Africa.
The Parliament is scheduled to debate a no-confidence motion moved by SJB-led Opposition against Energy Minister Kumara Jayakody on 10 April.
The Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability has instructed officials to immediately prepare a plan for the environmentally friendly disposal of ash emitted from the Norochcholai Lak Vijaya Power Plant.
These instructions were given at a recent meeting of the Committee held in Parliament, under the Chairmanship of Member of Parliament Hector Appuhamy.
It was revealed during the meeting that due to issues related to the quality of coal imported to Sri Lanka for power generation, the volume of ash emitted during electricity generation had increased significantly. Officials were directed to formulate a plan under the leadership of the District Secretary of the Puttalam District, to take the necessary measures.
It was also proposed that the possibility of reusing the coal ash for production purposes be studied, and that any revenue generated from such products be utilised for welfare projects benefiting the communities affected by the power plant.
In addition, the Committee instructed the Central Environmental Authority to submit a comprehensive report on whether water and air pollution have occurred as a result of the Norochcholai Power Plant. Furthermore, the North Western Provincial Environmental Authority was also instructed to provide responses within two weeks regarding the questionnaire and related matters submitted by the Committee in connection with the Norochcholai Power Plant.
Officials of the North Western Provincial Environmental Authority stated that although the volume of ash emitted from the plant had increased, the filtration system in use at the plant was sufficient to absorb it. Several matters, including the issuance of environmental protection licenses for the power plant, were discussed at the committee meeting.
News
Tariff shock from 01 April as power costs climb across the board
By Ifham Nizam
Electricity consumers will face a fresh financial jolt from 01 April, with the Public Utilities Commission of Sri Lanka (PUCSL) approving a countrywide tariff increase that will push up monthly bills across all consumption categories, with the heaviest burden falling on high-end users.
The decision follows a proposal by the Ceylon Electricity Board (CEB), which sought a 13.56 percent upward revision for the second quarter of the year, citing mounting operational costs and financial pressures within the power sector.
Under the new tariff structure, even the lowest-income households will not be spared, though the increases at the bottom tiers remain relatively modest. Consumers using between 0–30 units will see a 4.3 percent rise, adding approximately Rs. 15 to their monthly bill. Those in the 31–60 unit bracket will experience a 6.9 percent increase, translating to an additional Rs. 45.
For middle-tier users, the impact becomes more pronounced. Households consuming 61–90 units will pay around Rs. 120 more per month, following a 6.9 percent hike, while those in the 91–120 unit range will face a sharper increase of 7.1 percent, pushing their monthly costs up by about Rs. 420.
However, the steepest escalation is reserved for heavy electricity users. Consumers exceeding 180 units will be hit with a staggering 25 percent increase — the highest adjustment under the latest revision — raising serious concerns over affordability, particularly for urban households and small businesses already grappling with rising living costs.
Energy sector analysts warn that the latest revision signals deeper structural issues within the power sector, including reliance on costly thermal generation, currency pressures, and inefficiencies in energy procurement.
“The burden is gradually shifting toward consumers as the sector struggles to maintain financial stability,” a senior power sector analyst said, noting that repeated tariff adjustments could further strain public tolerance.
The PUCSL maintained that the revision was necessary to ensure the sustainability of electricity supply and to prevent a recurrence of crises that previously led to widespread outages and load shedding. The regulator has also indicated that cost-reflective pricing remains a key policy direction, particularly as global energy markets remain volatile.
The move comes at a time when many households are still adjusting to broader economic pressures, including high food prices and transport costs, raising fears that the tariff hike could have a cascading effect on the cost of living.
Small and medium enterprises, already operating on thin margins, are also expected to feel the pinch, with higher electricity costs likely to feed into production expenses and retail prices.
Despite the increases, questions remain over whether the tariff revision alone will be sufficient to stabilise the financially strained power sector, or if further adjustments — or reforms — may be inevitable in the months ahead.
With electricity demand steadily rising and generation costs remaining unpredictable, consumers now brace for yet another phase of higher utility bills, underscoring the fragile balance between energy security and economic resilience.
News
CDL under new management completes major Norwegian ship order
The Colombo Dockyard (CDL) under its new management has completed a major contract undertaken in March 2020 to build ten ships for Norwegian Misje Eco Bulk AS.
The company said that in spite of unprecedented global disruptions, a pandemic, an economic bankruptcy, regional wars, supply chain disruptions, logistical uncertainties, and untold hardships, they had been able somehow to meet contractual obligations.
The tenth ship was delivered to Misje Eco Bulk AS at the Colombo harbour recently.
Indian shipbuilding giant Mazagon Dock Shipbuilders Ltd. (MDL), affiliated to India’s Ministry of Defence (MOD), acquired controlling stake in CDL from Japanese shipbuilder Onomichi in mid last year MDL paid USD 52.96 mn for the stake.

Dileesh Rosemary De Silva breaking a bottle of champagne in celebration. She is flanked by Roald Misje CEO Misje EcoBulk AS and Thusitha Herath Site Team Manager of Misje EcoBulk AS
The owners named the vessel ‘Misje Kandy’ as a tribute to CDL. Ceremonial breaking of the milk pot in accordance with the Sri Lankan traditions was done by the Colombo Dockyard’s Project Manager of the series of 10 vessels S.M.S.B. Serasinghe. In accordance with the western traditions the ceremonial breaking of the Champagne bottle was done by the God Mother of the vessel Mrs. Dileesh Rosemary de Silva.
The 89.95m DNV-classed Eco Bulker was conceptualised by Wartsila Ship Design Norway, with detailed design work carried out by CDPLC’s skilled in-house design team. In line with the latest trends in sustainable shipping. The vessel is equipped with an advanced Energy Storage Battery System (ESS) for Electric Hybrid Propulsion, complementing the conventional diesel propulsion system to enhance operational performance and reduce environmental impact.
Indian High Commissioner in Colombo Santosh Jha attended the ship launch with the government represented by deputy ministers Nishantha Jayaweera and Janitha Kodithuwakku.
-
News6 days agoSenior citizens above 70 years to receive March allowances on Thursday (26)
-
Features3 days agoA World Order in Crisis: War, Power, and Resistance
-
News4 days agoEnergy Minister indicted on corruption charges ahead of no-faith motion against him
-
News5 days agoUS dodges question on AKD’s claim SL denied permission for military aircraft to land
-
Business5 days agoDialog Unveils Dialog Play Mini with Netflix and Apple TV
-
News6 days agoCEB Engineers warn public to be prepared for power cuts after New Year
-
Sports4 days agoSLC to hold EGM in April
-
Latest News5 days agoA strong Technical and Vocational Education and Training (TVET) system equips individuals with practical, relevant, and future-oriented skills helping to innovate responsibly towards a greener and sustainable future – PM
