News
Tariff shock looms as coal crisis drives Rs. 40 bn cost surge
Sri Lanka’s power sector is bracing for a steep electricity tariff hike, with senior officials confirming that a revised proposal seeks an additional 53% increase, just weeks after the last revision took effect on 01 April.
The move follows a deepening cost crisis, triggered by substandard coal imports and ongoing fossil fuel supply constraints, which, officials say, have already imposed a burden exceeding Rs. 20 billion for the April–June period.
“The numbers are alarming. This is not a marginal adjustment but a structural cost shock,” a senior energy sector official told The Island. “The tariff filing reflects a requirement of around Rs. 40 billion, and roughly half of that is directly linked to the coal issue.”
According to internal estimates, coal-based generation has dropped by nearly 250 gigawatt-hours (GWh) during the three-month period due to poor-quality fuel, forcing greater reliance on costly diesel generation.
“Replacing that lost capacity with diesel costs in the region of Rs. 25 billion,” another official said. “Even after accounting for about Rs. 4.5 billion in reduced generation costs, the net additional burden exceeds Rs. 20 billion.”
The National System Operator (NSO) has projected a total additional cost of approximately Rs. 42 billion for the quarter, forming the basis of the latest tariff application now under review.
Former Energy Minister Eng. Patali Champika Ranawaka also weighed in, warning against transferring the burden to consumers.
“To increase tariffs by Rs. 41 billion under these circumstances is deeply concerning. Around Rs. 20 billion of that is due to the coal issue,” Ranawaka said.
He urged the Public Utilities Commission of Sri Lanka not to approve measures that would pass inefficiencies and losses directly onto the public.
Ranawaka called on the government to take firm action against those responsible instead of deflecting accountability. “The focus must be on accountability and recovery, not on shifting blame or burdening the people,” he said, in an apparent reference to past attempts to attribute power sector failures to external or trivial causes.
Officials acknowledged that the proposed increase, if approved, would place additional strain on households and businesses already grappling with high living costs.
“What is particularly concerning is the contradiction between assurances and actual filings,” a senior official noted, referring to earlier claims that losses from the coal issue would not be passed on to consumers. “The tariff submission clearly suggests otherwise.”
The crisis is expected to intensify in the coming months. Diesel prices are likely to rise, further escalating generation costs, while high-priced heavy fuel oil (HFO) shipments expected from April will add to overall expenditure.
“These pressures are cumulative,” an official said. “The system has very limited capacity to absorb them without tariff adjustments.”
Questions have also been raised about the feasibility of recovering losses from the coal supplier. Officials pointed out that the estimated financial damage is nearly equivalent to the total invoiced value of the first 11 coal shipments—around Rs. 21 billion—making full recovery unlikely.
Energy analysts warn that the financial impact could extend beyond June, as the affected coal stocks are expected to remain in use until at least August, prolonging inefficiencies and elevated costs.
The unfolding situation has intensified calls for transparency and accountability in the energy sector, with growing concern that consumers may ultimately bear the cost of systemic failures.
“This is about the credibility of the system,” a senior official said. “Without accountability, these crises will continue—and the public will keep paying the price.”
By Ifham Nizam
The Sri Lanka Navy successfully recovered its Fast Attack Craft P 4447 following a successful salvage operation, bringing a multi-stage emergency response to a close.
The craft, which ran into distress during a routine patrol on 15th August 2026 off Angulana, was brought to the surface on 11th September, from a depth of approximately 80 feet. It was
subsequently towed to the Colombo Dockyard premises.
The initial phase of the operation immediately following the incident focused on search and rescue. A joint effort involving the Navy, Air Force, Police, and local fishermen from Angulana
resulted in the rescue of 11 crew members. The search and rescue phase drew to a close with the recovery of the remains of the Second in Command of the craft, on 4th September.
Following the search and rescue phase, specialized Navy diving and salvage teams launched a dedicated recovery phase against rough sea conditions and underwater challenges, adhering to
strict safety protocols. The Navy’s marine, hull, electrical, and electronic engineering teams utilized specialized technical know-how and equipment to raise the vessel in stages.
Thus, the salvage operation marked an outstanding achievement attained through the professionalism, technical expertise of Navy divers, and coordinated contribution of all
engineering and technical branches of the Sri Lanka Navy. Technical support and specialized expertise were also extended by the Sri Lanka Ports Authority and Colombo Dockyard PLC.
By Shamindra Ferdinando
The Opposition should intensity its focus on the forthcoming selection of a member of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and remain vigilant as Speaker Dr. Jagath Wickremaratne, MP, the head of the Constitutional Council (CC) tasked with making the relevant recommendation, is under investigation by the CIABOC, sources familiar with the ongoing inquiry told The Island.
Chethiya Goonasekara, PC, is expected to complete his three-year term on Dec 31, 2026. Sources pointed out that CIABOC Commissioners are appointed by the President on the recommendation made by the 10-member Constitutional Council.
The CIABOC initiated the investigation following a complaint lodged by suspended Chief of Staff and Deputy Secretary General of Parliament Chaminda Kularatne in early February this year. Sources said that as Goonasekera is scheduled to complete his term toward the end of 2026, the CC would have to call applications soon to choose the successor.
Goonasekara received his appointment from President Ranil Wickremesinghe in January 2024. A Justice W. M. N. P. Iddawala was appointed Chairman of the CIABOC. The other commissioner is K. Bernard Rajapakse.
Asked whether Iddawala and Rajapakse, too, would complete their terms soon, sources said that in terms of the Anti-Corruption Act No 09 of 2023, the Chairman of CIABOC would hold office for a period of five years, second commissioner (K. Bernard Rajapakse) for four years and the third commissioner (Chethiya Goonasekara) for a period of three years.
Sources said that the Opposition as well as civil society representatives in the CC should take up the issue of Speaker facing an investigation by the CIABOC taking part in the forthcoming selection process. Responding to queries, sources emphasized that the issue was whether in terms of Section 107 of the Anti-Corruption Act the participation of the Speaker in the selection process amounted to a violation of the Act itself.
The current members of the CC are Dr Jagath Wickramaratne, Speaker and Chairman of the Constitutional Council, Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, MP, Aboobucker Athambawa, MP, Ajith P. Perera, MP, Sivagnanam Shritharan, MP, Austin Fernando, Civil society representative, Prof. Wasantha Seneviratne, Civil society representative and Ranjith Ariyaratne, Civil society representative.
Sources pointed out that in spite of the sensitivity of the case, the CIABOC recorded Kularatne’s statement in the second week of August, six months after he lodged the complaint.
The CIABOC on 3, 8 and 10 Sept recorded the statements from the Transport Officer, Deputy Director, Administration and Assistant Director, Finance regarding the use of facilities by the Speaker, those assigned to his staff and other relevant matters.
The NPP named Dr. Wickramaratne as the Speaker after Asoka Ranwala resigned over controversy regarding his higher education qualifications.
SJB lawmaker Dayasiri Jayaskera has repeatedly raised the issues concerning the Speaker with the focus also on the Speaker using two government-managed residences, relevant staff in addition to expenditure on food, transport and fuel provided to the Speaker’s private secretary.
Political sources said that trouble erupted after the Parliamentary Staff Advisory Council in late January sacked Kularatne accusing him of providing false information to secure his appointment. Before being appointed as the Deputy Secretary-General of Parliament in 2023, Kularatne held several high-ranking positions, including Secretary to the Chief Government Whip, Additional Secretary to the President, Additional Secretary to the Prime Minister, and Additional Secretary to the Leader of the Opposition.
The SJB declared in Parliament that Ranwala should be brought back as the Speaker as they have no faith in Wickramaratne. MP Mujibur Rahuman jokingly told parliament that the Opposition wouldn’t raise Ranwala’s educational qualifications.
The Government Medical Officers’ Association (GMOA) has stressed the need to conduct a comprehensive countrywide cadre revision urgently.
GMOA spokesman Dr. Lasitha Dhammika told The Island that the failure on the part of successive governments to conduct cadre revision caused the deterioration of the public sector health services. Due to the absence of required statistics, they hadn’t been able to fully comprehend the situation on the ground and to ascertain the requirements of the public.
Dr. Dhammika pointed out the expansion of the services without supporting statistics and the need to initiate an immediate cadre revision. According to him, the GMOA had raised this issue with successive governments without success. The GMOA spokesman said that they also sought relevant information from the Health Ministry in terms of the Right to Information (RTI) Act two weeks ago but was yet to receive response.
(SF)
Fast Attack Craft P 4447 recovered in successful salvage operation
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