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PUCSL reveals CEB’s questionable bids to purchase power

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‘15 out of 16 requests rejected, but there were no blackouts’

By Rathindra Kuruwita

The Ceylon Electricity Board (CEB) had made 16 requests to Public Utilities Commission of Sri Lanka (PUCSL) between 2016 and 2020, seeking permission for power purchases, Chairman of the PUCSL Janaka Ratnayake said yesterday.

Ratnayake said that PUCSL had rejected those requests outright on 13 occasions and turned down two requests after discussions. PUCSL had approved the purchase of emergency power only once, he said.

“The funny thing is that our rejections did not lead to power cuts although those requests were made to avoid potential power cuts. We saved Rs. 571 billion by rejecting these requests. If the PUCSL had not existed, power purchases would have been made and the people would have been compelled to bear the burden. Therefore, it’s important to have regulators like the PUCSL. In other sectors we see ad hoc purchases and price hikes,” he said.

The PUCSL chairman said that they had warned about possible power cuts circa 2020 because the long-term generation plans were not implemented. The PUCSL, the Cabinet and the CEB Board of Directors had approved several power plants over the years. “For several reasons, none of these plants have been built. Thus, we have been having issues for a long time. Our power issues are man-made. PUCSL has called for building power plants, the Cabinet and CEB board approval have also been given but power plants are not built. But over the years there have been a lot of requests for purchasing emergency power,” he said.

Ratnayake said that the CEB had not made a request to buy emergency power now. This is because the issue right now is financial and not related to production.

“I think all of us remember the blackout on December 03, 2021. Was that accidental or was it sabotage? This is what we are looking into. When the blackout took place, two plants at Norochcholai broke down. We lost about 570 megawatts of power and it took almost a week to get the plants back online. Again on December 23 to 24, 2021, CEB, without any warning and without our approval initiated power cuts across the country. We wrote to CEB immediately and asked why you are shedding power? They didn’t reply. They did the same thing again on January 06, 2022. This time we asked them more aggressively,” the PUCSL chairman said.

The CEB had responded to the PUCSL a few days later and claimed that they were having issues with power generation, Ratnayake said. The CEB said some plants were not operating due to various reasons and wanted the PUCSL to approve power cuts.

“Now, the CEB is receiving fuel from the CPC and by the end of January the third power plant at Norochcholai will be back online. This will add 270 megawatts to the grid. So, I think we can stop the power cuts,” he said.

The Chairman of the PUCSL added that the CEB had not provided adequate information about the blackouts in December 2021 and soon the PUCSL will hold a public hearing on this. “We will take evidence and take steps to ensure that this doesn’t happen in the future,” he said.



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Advisory for Severe Lightning issued for Galle, Matara, Kaluthara and Rathnapura districts

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Advisory for Severe Lightning Issued by the Natural Hazards Early Warning Centre Issued at 12.30 p.m. 21 March 2026, valid for the period until 11.00 p.m. 21 March 2026

Thundershowers accompanied with severe lightning are likely to occur at some places in the Galle, Matara, Kaluthara and Rathnapura districts after 1.00 p.m.

There may be temporary localized strong winds during thundershowers. General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.

ACTION REQUIRED:

The Department of Meteorology advises that people should:

 Seek shelter, preferably indoors and never under trees.

 Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.

 Avoid using wired telephones and connected electric appliances during thunderstorms.

 Avoid using open vehicles, such as bicycles, tractors and boats etc.

 Beware of fallen trees and power lines.

 For emergency assistance contact the local disaster management authorities.

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Sri Lanka says it denied US request to land two aircraft at Mattala airport

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Sri Lanka’s president says his government turned down a request from the United States to land two US combat aircraft at a civilian airport earlier this month.

President Anura Kumara Dissanayake told Sri Lanka’s parliament on Friday that Washington had requested permission for the aircraft to land at Mattala Rajapaksa International Airport in southern Sri Lanka from March 4 to 8.

The request was made on February 26, two days before the US and Israel launched their military offensive against Iran.

“They wanted to bring two warplanes armed with eight antiship missiles from a base in Djibouti”, Dissanayake told lawmakers. “We turned down the request to maintain Sri Lanka’s neutrality”, he added to applause.

The US-Israeli war on Iran has sparked widespread concern globally, as Iranian missile and drone attacks across the wider Middle East have sent energy prices soaring and fuelled fears of a widening conflict.

US President Donald Trump has also been pressuring Washington’s allies to show more support for the war, slamming NATO countries as “cowards” for refusing to help secure the Strait of Hormuz.

Iran has essentially shuttered the critical Gulf waterway  amid the war, forcing leaders around the world to scramble to try to offset the effects on their economies and energy supplies.

Amid the turmoil, many countries have refused to get directly involved in the war while calling for urgent de-escalation.

On Friday, Switzerland announced that it would halt any weapons exports to the US that could be used in military operations against Iran, citing its longstanding policy of neutrality.

“The export of war materiel to countries involved ⁠in the international armed conflict with Iran cannot be authorised for the duration of the conflict”, the Swiss government said.

Sri Lanka’s president also cited his country’s neutrality in the decision to deny the US request to land the two aircraft at Matalla airport earlier this month.

Dissanayake said he had received another request that same day, on February 26, from Iran to seek permission for three naval vessels to make a goodwill visit to Sri Lanka.

“With two requests before us, the decision was clear,” he said, noting that the government denied both to avoid taking sides as signs of escalating conflict emerged.

“Had we said ‘yes’ to Iran, we would have had to say ‘yes’ to the US, as well”, Dissanayake added.

In early March, Sri Lanka’s navy rescued 32 Iranian crew off IRIS Dena after it was torpedoed by a US submarine off the country’s coast, killing at least 84 people.

Days later, Sri Lanka evacuated more than 200 crew members from a second Iranian vessel, IRIS Bushehr, after the ship requested assistance from Colombo.

[Aljazeera]

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President maintains Lanka has been even-handed in dealing with Iran and US

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Sri Lanka refused the request by three Iranian ships to come to Sri Lanka on a goodwill visit and the request by the United States to land two of its fighter jets  in Mattala, President Anura Kumara Dissanayake told Parliament yesterday.

“Sri Lanka maintained neutrality by refusing the two requests by both the US and Iran,” he said.

President Dissanayake provided a clarification on domestic fuel prices in light of rising crude oil prices in the global market and subsequent fuel price increases in other countries, triggered by the ongoing crisis in the Middle East.

The President highlighted that the Ceylon Petroleum Corporation (CPC) currently supplies 57% of the country’s fuel requirements, while the remaining 43% is supplied by the private sector.

He further noted that private sector suppliers have requested pricing that reflects current global market rates for the fuel they import.

Accordingly, the President emphasised that a decisive decision on fuel price adjustments must be reached as expeditiously as possible to ensure the continuity of the national fuel supply.

Addressing the Parliament, the President stated that the current pricing formula dictates that for every one-dollar increase in global oil prices, domestic fuel prices must rise by Rs. 2.

He noted that the primary impact being faced is driven by the surge in global fuel prices rather than the depreciation of the rupee against the US dollar.

The President said that, globally, countries have been compelled to make difficult decisions regarding fuel costs, with price increases ranging from approximately 6% to 50%.

He added that while global prices have risen by as much as 49%, the domestic increase has been limited to 8%.

He further stated that Sri Lanka is currently facing a significant challenge in maintaining fuel supply.

The Ceylon Petroleum Corporation (CPC) accounts for 57% of the country’s fuel supply. He noted that had the CPC been the sole supplier, fluctuations could have been managed by offsetting current losses with future profits.

However, he said the private sector now controls 43% of the market, and their position is that if retail prices do not reflect the current landed cost of fuel, they will cease imports.

He added that, from a business perspective, this is a valid concern, as private companies reportedly incur a loss of approximately USD 55 million per shipment, which he said is unsustainable.

The President emphasised that the contribution of the private sector is essential to maintaining the national fuel supply, but noted that they will only participate if they are able to sell at cost-reflective prices.

He stressed that the issue of fuel pricing must, therefore, be addressed urgently.

He also pointed out that under the existing Act, companies are permitted to increase prices; however, the maximum retail price is determined by the Ceylon Petroleum Corporation.

“Although we have entered into agreements with these private companies, the necessary legislative amendments to the Act have not yet been finalised,” he noted.

Regarding government revenue, the President stated that tax income from fuel currently stands at Rs. 20 billion, compared to Rs. 240 billion generated last year from taxes on diesel.

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