News

SC notices Power Minister and several others over FR petition alleging govt. set to incur loss exceeding Rs 3bn due to irregular tender

Published

11 months ago

2025/02/22

Thilina Walpola

MINISTER KUMARA JAYAKODY

By A.J.A Abeynayake

The Supreme Court has issued notices to Minister of Power and Energy Kumara Jayakody and several other respondents in connection with a fundamental rights petition alleging that the government is set to incur a loss exceeding Rs. 3 billion due to irregularities in the awarding of a solar power plant tender in Siyambalanduwa, Athimale.

The petitioner claims that the Ceylon Electricity Board (CEB) had called for tenders to construct a 100-megawatt solar power plant, but the contract was awarded to a higher bidder, disregarding the lowest bid, resulting in a significant financial loss to the state. The Supreme Court issued the order on Thursday (20) and directed that notices be sent via courier service by 24 February, at the expense of the petitioner. The decision was delivered by a bench comprising Justices S. Thurairaja and Sampath B. Abeykoon.

According to the petition, a company that offered to supply electricity at USD 0.08 per kilowatt-hour was overlooked in favour of a bidder offering USD 0.122 per kilowatt-hour. The petitioner, Milinda Prasanna Madugalla, stated that he learned of the decision through media reports on 21 January 2025. The petition further alleges that the company awarded the contract later agreed to provide electricity at USD 0.08 per kilowatt-hour, but the government had also agreed to cover additional transmission facility costs over a 10-year period, significantly increasing expenditure.

Although the electricity supply cost was eventually reduced, the substantial increase in transmission charges has resulted in an estimated loss of Rs. 3.3 billion to the government. The petitioner argued that this financial burden would ultimately be borne by the public, making the respondents’ actions unlawful and a violation of fundamental rights.

During the hearing, Senior Counsel Suren Fernando, representing the petitioner, urged the court to treat the matter as urgent and allocate an early date for further proceedings. He informed the court that notices had already been issued to all respondents and relevant parties, along with supporting documents.

However, only a Deputy Solicitor General, representing the Attorney General, listed as the 10th respondent, was present in court. The remaining nine respondents or their legal representatives failed to appear.

The Supreme Court has issued notices to Minister Kumara Jayakody, the Ceylon Electricity Board, Rividenavi (Pvt) Ltd, Lakdanavi Ltd, WinSports Ltd, Blue Circle (Pvt) Ltd, Athimale Plantations (Pvt) Ltd, Secretary to the Ministry of Power and Energy Prof. K.T.M. Udayanga Hemapala, and Cabinet Secretary W.M.D.L. Fernando.

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Navy seize an Indian fishing boat poaching in northern waters

Published

7 hours ago

2026/01/3

Priyan

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.

Latest News

Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund

Published

13 hours ago

2026/01/3

Priyan

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.

News

CEB demands 11.57 percent power tariff hike in first quarter

Published

15 hours ago

2026/01/3

Thilina Walpola

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 ✍️