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

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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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Chemmani mass graves: Govt to seek international forensic help

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ECONOMYNEXT –International assistance for forensic analysis of the remains unearthed at the Chemmani mass grave will be sought when the need arises, Sri Lanka’s Minister of has Justice said after opposition legislators urged the government to seek help.

“We have spoken to embassies, we have made all the local finances necessary for excavation. But when it comes to DNA analysis, depending on the type and nature we will definitely have to go for internationally recognised places,” Harshana Nanayakkara said in response to a query in Parliament.

Nanayakkara said that request for international expertise is dependant on the direction the courts give on what needs to be done, after which they will decide which agency best suits the proceedings.

The minister also recognised that local expertise is lacking in the forensic department, and the need to train local staff with the help of international experts.

Opposition MPs argued that the present need is direct help in forensics from international entities, rather than the longer term need to train the staff on analysis.

Currently, the investigation is in the excavation and exhumation stage, conducted by archaeologist Raj Somadeva and his team.

The existence of the Chemmani mass grave was first brought to light in 1998, during the trial of the rape and murder of schoolgirl Krishanti Kumaraswamy.

In February 2025, construction workers found remains near the Sinthupathy Cemetery, and following investigations ordered by the Learned Magistrate, the mass grave was discovered.

412 bodies have been discovered, with 409 bodies recovered as of 23 June 2026. According to the Office on Missing Persons, this is the 17th recorded mass grave in Sri Lanka.

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ADB approves $57.4 million package to boost Lanka’s rooftop solar drive

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The Asian Development Bank (ADB) has approved a $57.4 million financing package to help Sri Lanka expand access to affordable clean energy and reduce greenhouse gas emissions through a large-scale rooftop solar aggregation and virtual net metering programme.

The financing comprises a $35 million concessional loan, $16.9 million in grants from the European Union and $5.5 million from the Japan Fund for the Joint Crediting Mechanism. With additional contributions from implementing agencies, the total estimated cost of the project is $80.5 million.

Under the Rooftop Solar Aggregation and Virtual Net Metering Project, two state-owned utilities — Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited — will introduce a scalable model to collect electricity generated from large rooftop solar installations and allocate the benefits virtually among eligible consumers.

The initiative will allow consumers to access solar power benefits without having to install individual rooftop solar systems.

ADB Country Director for Sri Lanka Shannon Cowlin said the project would broaden access to affordable renewable energy while strengthening the resilience and inclusiveness of the country’s power sector.

She said the initiative would also support grid modernisation and digital transformation, while creating employment opportunities and encouraging greater participation of women and youth in the clean energy sector.

The project is expected to benefit micro, small and medium enterprises and community organisations that face financial or space constraints in installing their own rooftop solar systems. Through a social compensation mechanism, eligible groups will receive reductions in electricity costs under the virtual net metering system.

The programme will support around 25 megawatt-peak of rooftop solar capacity while strengthening distribution networks, improving digital capabilities and preparing the national grid to accommodate higher levels of distributed renewable energy.

A dedicated training facility will also be established under the project to develop green skills, enhance women’s participation in the sector and build technical expertise in advanced low-carbon technologies.

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Bond scam case against Mahendran, Ravi K fixed for July 22

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The Colombo High Court on Friday ordered that proceedings in the case filed against 11 defendants, including former Central Bank Governor Arjuna Mahendran and former Finance Minister Ravi Karunanayake, over alleged irregularities in the Central Bank bond auction be taken up again on July 22.

The case was called before Colombo High Court Judge Manjula Thilakaratne, who informed court that the Trial-at-Bar bench appointed to hear the matter had not been properly constituted.

Accordingly, the judge directed that the case be recalled on July 22 for further proceedings.

The Attorney General has filed indictments under the Public Property Act against 11 accused, including Mahendran, Karunanayake, Perpetual Treasuries Limited and its directors Arjun Aloysius and Geoffrey Aloysius.

The accused have been charged over alleged irregularities connected to a Treasury bond auction conducted by the Central Bank in March 2016.

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