News
Sectoral Oversight Committee exposes CEB costing trick to make huge profits
By Rathindra Kuruwita
The Ceylon Electricity Board (CEB) has significantly overestimated the cost of electricity production and transmission for 2024 and this is reflected in their estimated cost of production, says MP Gamini Waleboda, head of the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis.
The overestimation is around Rs 140 billion, Waleboda has said, adding that the CEB has recently presented the estimated costs for 2024 to the Public Utilities Commission of Sri Lanka (PUCSL).
“When we look at the cost of production, we see that it has been overestimated by about Rs 80 billion,” he said.
MP Waleboda said that the CEB had also increased the estimated cost of transmission. Over 98 percent of households were connected to the national grid, he said.
“If you look at the cost of transmission in the recent past, it has hovered between 55 and 67 billion rupees. The cost of Rs 67 billion was when we were dramatically expanding the coverage. Now, the network is mature. This year the CEB says the cost of transmission is Rs 132 billion rupees,” he said.
MP Waleboda said that CEB had also significantly overestimated the cost of financing. The CEB’s calculation ran counter to the principles of accounting, he said.
“They have calculated the interest rate using the rates that were prevalent at the height of the economic crisis. This has to decrease. The CEB has also calculated depreciation of assets that have been fully depreciated. This is imaginary expenditure. There are many instances of double counting. The CEB has no proper cost accounting mechanism and therefore officials and policy makers parrot out numbers that someone comes up with,” MP Waleboda said.
Waleboda said the minister of power and energy, Kanchana Wijesekera and senior CEB officials had taken the recommendations of the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis as a personal affront.
“We are actually trying to help him because the minister needs correct data to make the right decisions. The overestimation is around Rs 140 billion. In 2023, the CEB made a profit of over Rs 50 billion. It made a monthly profit of about Rs 15 billion rupees in January and February 2024.”
Waleboda said the CEB and the Ceylon Petroleum Corporation (CPC) were now profit-making enterprises. However, they were making profits at the expense of macroeconomic sustainability. The two institutions have gone beyond the breakeven point and are now making tens of billions of rupees in profit, the MP said.
“However, the social and macro-economic impact have been adverse. The education of millions of children is adversely affected when a million households are taken off the grid. The manufacturing and agricultural sectors are suffering because of high power and energy costs. To make the CEB profitable, we have undermined our macroeconomic stability, economic expansion, and social wellbeing,” he said, noting that the government must take a holistic view of the economy. The CEB is a part of a wider system and if everything else collapses, the CEB can only last for a short period, he said.
The Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis had met representatives of organisations that earned foreign currency and all manufacturers that produced for the domestic market, he said.
“We are not asking the CEB to continue supplying electricity below cost. We are asking the government to help our manufacturers and the poorest segments. If we ignore the tragedy that unfolds among the lowest strata of society, we will only be asking for a massive social crisis in the coming years,” Waleboda said.
The MP said the Central Bank (CBSL) could do a lot more to help the economy. The CBSL was implementing IMF policies, and losing its grip on the financial sector, Waleboda said.
“Financial institutions are paying a single digit interest for savings, but the interest rates for borrowing are in double digits, over 16 percent in many cases. The banks are making tremendous profits. The CBSL has reduced policy rates several times, but the banks have not passed the benefit on to borrowers. Not even state banks are reducing their loan interests,” he said.
However, the CBSL had played a pivotal role in controlling and reducing inflation which was around 70% in late 2022, Waleboda said.
“There is a lot of talk on making the CBSL independent. This should not mean it should carry out the IMF or ADB programme or act according to the whims of the few people on the monetary board. The CBSL must come up with a monetary policy that is sustainable in the long term and leads to economic development,” MP Weleboda said, noting that according to their calculations millions of US dollars that should be brought back to Sri Lanka are parked in foreign countries by exporters. “The country loses at least 1.2 billion dollars a year because of this, and this is around the income generated by the IT industry”, he said, “There should be an institution to keep a tab on these things.”
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PNB detect large haul of methamphetamine and heroin in local fishing trawler intercepted by Navy
Acting on credible information, the Sri Lanka Navy launched a special operation on the high seas on 11 Apr 25, resulting in the apprehension of 06 suspects along with a local multi-day fishing trawler, believed to be involved in smuggling of narcotics.
Subsequently, the intercepted trawler was brought to the Dikkowita Harbour, where a thorough inspection was carried out with the assistance of the Police Narcotic Bureau (PNB) experts, leading to the detection of approximately 77kg and 484g of heroin and 42kg and 334g of methamphetamine (Ice).
The consignment, which had been meticulously hidden in the trawler, was handed over to the PNB for onward legal action on 12 Apr.
News
Government to initiate new projects to help rural communities to strengthen the national economy – Prime Minister
Prime Minister Dr. Harini Amarasuriya stated that the government is currently working to initiate new projects across every area of Sri Lanka and to bring the necessary investments to rural areas in order to improve the participation of the communities in strengthening the national economy.
The Prime Minister made these remarks while addressing a public gathering held on Saturday (12th) in Nanattan, Mannar.
Prime Minister further stated:
“Our country has reached a decisive point. The government of the National People’s Power (NPP) understands the expectations of the people. The general public came together despite the ethnic and religious barriers to exercise their voting right against corruption in politics that existed in this country. Consequently, Anura Kumara Dissanayake was able to become the President in 2024. A month later, we formed a Parliament that will initiate in changing the history. Today, we have a government made up of 159 members. There is now a strong group in Parliament standing against corruption and a government that represents all ethnicities, religions, and regions. For the first time in history, we have formed a government made by a single party that represents everyone. The people are the ones who made this victory possible and they are the true victors in this cause.
We are committed to protecting the trust the people have placed in us and to fulfill their expectations.
You are well aware of how weak the economy was when we came to power. Officially, we had been declared a bankrupt nation before the world. For many years, Sri Lanka had no economic growth and was in a debt-ridden economy. The tourism sector had collapsed. Due to the corruption in political authority, investors were unwilling to invest the country. Today, we have changed all that. We have managed to steer the economy towards growth leading to investments being restored while the confidence in Sri Lanka is increasing internationally.
We are working to start new projects in every area of Sri Lanka to bring the necessary investments to the rural sector, with the aim of improving the participation of rural communities in the national economy.
The first budget of the NPP government has passed. Even though the economy is not yet strong, we focused on two main priorities in the budget: one was to develop infrastructure necessary for economic growth, and the other was to provide relief to people burdened by economic hardships. That’s why we have increased and extended the period of Aswesuma benefits. Further, vouchers to buy schoolbooks was distributed at schools with less than 300 students.
Previous governments were a burden to the people. But today, we have a very small Cabinet of Ministers. The government is no longer a burden to the people. We have reduced expenses, minimized losses, and eliminated corruption.
Because the government is not a burden to the people, it was able to provide relief to the people. Through this budget, the basic salaries of the public service has been increased. They have been given the opportunity to work freely. Decisions are now made on statistical data and not based on political preferences. What we expect is an independent public service. We are in need of a people-centered government as well as a public service which should be an efficient, corruption-free and people-sensitive. We have already created the necessary environment for that.
In order to develop the rural economy, the government has allocated a large amount of funding through this year’s budget. But, to ensure that these allocations are used properly to serve the people, the local government institutions need to be cleaned up. If the leaders who represents the villages are corrupt, the funds allocated will become worthless. That is why the upcoming local government elections has become extremely significant and decisive.”
The event was attended by the Members of Parliament Jegadeeswaran and S .Thilakanadan, public representatives, and candidates of local government election representing the NPP.
[Prime Minister’s Media Division]
SJB Colombo District MP Mujibur Rahuman launched a fierce critique of the political hypocrisy surrounding the Batalanda Commission report during Thursday’s (10) parliamentary session.
Rahuman pointed to the violent actions of the JVP, which had devastating effects on politicians, police officers, and civilians, as detailed in the Commission’s final report.
He said that the violence had disrupted vital services and created a state of lawlessness, severely affecting the public.
The MP accused political opponents of exploiting the Batalanda issue for electoral advantage, noting that for 36 years, no proposals were made to investigate the assassination of JVP leader Rohana Wijeweera.
He criticized the JVP for forming “probationary” governments with Chandrika Kumaratunga and backing Ranil Wickremesinghe in the yahapalana effort, yet failing to address the Batalanda issue during their tenures.
Rahuman also questioned the current attacks on Wickremesinghe, highlighting that many of his critics had previously collaborated with him. He called attention to the JVP’s statements regarding Gotabaya Rajapaksa’s alleged involvement in a Matale mass grave and the distribution of pamphlets on the subject during the 2022 Galle Face protests.
The MP called for accountability, questioning why no proposals were put forward on these issues when the current government came into power. He also criticized the NPP for its leaders, who, despite being involved in suppressions during the 80s and 90s, now sought positions within the government. Rahuman accused them of hypocrisy, warning against dragging the Batalanda issue into the ongoing election.Rahuman said that the historical wrongs committed by JVP political leaders cannot be erased, regardless of attempts to downplay them.
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