Features
The correct method of costing electricity
By Dr Tilak Siyambalapitiya
At a time the entire society is confused about who does what in determining electricity costs and prices, it would be useful for the learned and intelligent Sri Lankans to examine the correct procedure. What is written here is practiced across the civilized world, in countries where electricity generation is not a monopoly but electricity supply is still a monopoly. That includes India.
Five activities to get electricity to customer
Electricity industry comprises five businesses: electricity production, transmission, bulk supply, distribution, and retail supply. Transmission and distribution are natural monopolies, since there cannot be several companies building their own lines in the same geographic area to facilitate competition. However, electricity production, bulk supply and retail supply can be open for competition. Competition in generation can be at the initial procurement (as in Sri Lanka) or through short-term competitive contracts. They can be day-ahead competitive procurements (eg: India) or real-time competition. In Sri Lanka, electricity generation is open for private investments. If the investment is private, what is procured competitively is a “power purchase agreement. If the power plant is to be CEB’s own”, then what is procured is “a turnkey contract” to supply, install and commission a power plant. If the power plant is based on renewable energy up to 10 megawatt and private, electricity is purchased on feed-in-tariffs (some are competitively procured, too). For bigger renewable energy power plants, the law previously said it must be procured competitively, but a few months ago, the government changed the law to imply competition is not required.
Procurement is not the theme of this article. Once a power supply system is in place, how does one calculate the costs and then pass it down to customers in the form of tariffs?
Just like any other industry, electricity supply industry costs, too, can be divided into fixed costs and variable costs.
Fixed Costs
Fixed costs relate to the “capacity” of electricity production and delivery. A power plant built with a loan requires the loan principal and interest to be paid. The equity investment on the power plant should yield a return on investment. If the power plant is a private investment, its fixed cost are called “capacity charges” stated in the power purchase agreement in which the investors commitments to his banks and co-investors are included. Transmission and distribution lines, and various equipment at substations, too, require investments. There will be debt repayments and return on investments, too, required for such investments.
Fixed costs are independent of the amount of electricity produced. Supply of electricity requires a certain level of reliability of service to be assured. Investments on power plants, transmission lines and distribution lines should ensure the required capacity (amount of current), reliability (no power cuts, blackouts) or quality (no brownouts) are available to electricity customers.
Electricity regulators in most countries in the world review fixed costs submitted by electricity suppliers, compare with norms, examine opportunities to be progressively “cost efficient” and then approve the fixed costs. Fixed costs so approved include depreciation, interest costs, maintenance costs, spare parts, and staff salaries, and profits. Since electricity industry cost regulation includes a pre-defined profit, a return on investment is also included in the fixed costs. Since fixed costs do not vary rapidly, they are approved, upfront, for three years or five years. This time-interval, for which fixed costs are approved, is called the “tariff period”. Sri Lanka, from 2011 to 2020, followed a five-year tariff period, and since 2021, follows a three-year tariff period. Presently, the active tariff period is 2021-2023.
So, fixed costs are totally independent of how much of electricity is produced. Fixed costs are incurred anyway, literally, even if a single unit of electricity is not produced or purchased by customers.
Variable costs
Variable costs are proportional to the energy delivered. Energy is measured in kilowatthour (commonly called units of electricity). Fuel costs are incurred when a thermal power plant, or a biomass power plant, is operated. For renewable energy power plants, such as hydropower, wind and solar energy, there are no fuel costs. Their variable costs, that mean costs that depend on the quantity of energy delivered, if any, are very small.
When a thermal power plant operates, there will be costs on fuel, lubricating oil and other maintenance expenses. These costs are expressed, based on one unit of electricity (a kilowatt hour). If the power plant is private, the price paid per unit of electricity is based on the price of fuel, as stated in the respective agreement. Almost all agreements do not carry any mark-up on production costs. Investor’s profits are built into the fixed costs. For renewable energy power plants that sell electricity to the grid, without any storage, their costs, too, is based on electricity produced to the grid. Since generation costs depend heavily on hydrology and fuel prices, variable costs are required to be submitted for approval, once in 12-months, but represented in two six-monthly intervals, i.e. January-June and July-December.
Regulatory procedure and timetable to approve costs and prices
The Electricity Act 2009 specifies that a “tariff methodology” must be established by the regulator, PUCSL. This “tariff methodology” is available in the public domain for anyone to study. Electricity transmission and distribution license holders (currently CEB and LECO) must submit their costs, based on a specific format, which are then reviewed and approved by PUCSL. Submissions for transmission and distribution must be once in three years. These formats, too, are available on-line for public to view. This has been done for the window 2021-2023.
The timetable for cost and price review and who submits what, in which format, are all defined in the “Electricity (Procedure for Review and Adjustment of Tariffs) Rules No. 03 of 2016”, published in Gazette No. 1978/21, dated 2nd August, 2016. For example, the rules say “On or before the last working day of April, the Licensee shall submit to the Commission the following (using the templates approved by the Commission)” and provides a list of documents. It goes on to say “On or before the last working day of May of each year the Commission shall prepare the Draft Tariff Estimates using the Tariff Methodology and post the Draft Estimated Tariffs in its Website.” None of these happen on schedule.
The timetable has been largely ignored by CEB/LECO as well as by PUCSL itself who issued the timetable. However, delayed submissions and delayed decisions have been published from time to time, about costs and prices.
Most recent Published costs
Cost estimates for 2023 have not been submitted by CEB+LECO to PUCSL, as it has been widely stated in the media. Apparently, costs have been submitted to the Ministry. Thus, we have to go by the costs approved by PUCSL for the first half and second half of 2022. Sri Lanka’s national average price of electricity, right now, is Rs 30.13 per unit, which is closer to the costs approved by PUCSL and included in electricity prices announced in August 2022. However, it is clear that the costs of the second half of 2022 of Rs 48.45 per unit, published by PUCSL, would not be covered by charging the present price of Rs 30.13 per unit.
We do have to remember that “fixed costs” include depreciation, interest payments, staff, spare parts and a fixed return on investment (i.e. profit). If CEB and LECO agree to forego the profits, the “fixed costs” will be lower. Depreciation allowed is expected to finance debt repayments related to investments and for equity for ongoing or future investments. If debts are not being repaid, what happens to the cash set aside for depreciation is a question.
Even if depreciation, interest payments and return on equity are taken out of the calculation of pure cashflow requirements, still the following questions require answers:How much of electricity is planned to be produced, in 2023, from diesel and other petroleum fuels? Actual production from these expensive oils, in 2021, was 21%. Seven years ago, the long-term plan stated that only 13% of electricity will be produced from oil in 2021. So, what happened and where did it go wrong? For 2023, the plan of 2015 said only 9% will be produced from oil, but how much does CEB plan to produce from oil and who is responsible for the gap?
At what price is oil bought to produce electricity. A barrel of diesel is now about USD 100 delivered to Colombo, and a barrel has 160 litres. A small calculation yields that a litre of diesel should be Rs 231, since there are no delivery or retail costs to be added to the import costs. Electricity production does not get oil at these actual international prices. Fuel oil should be still cheaper.
However, it is clear that the delay in getting the full quantity of coal for the Norochcholai power plant (2022-23), the absence of Sampur (was due 2021-22) and Norochcholai No 4 generator (due 2024-25) all cancelled by politicians, and numerous renewable energy power plants delayed or cancelled by various people, and the absence of a gas terminal, may require at least 28% of next year’s electricity to be produced, using the killer fuel, oil.
Once the costs are reviewed and approved, they must be converted to a price schedule. The theory of pricing is taught to all electrical engineers, and it is not too complicated to be learned by anyone.PUCSL’s own approved costs for the second half of 2022 are Rs 48.45 per unit, or about 15 US cents per unit. Internationally, 15 US cents is considered a “high” cost of electricity. If CEB was “private”, the entire Rs 48.45 would have to be paid, even for the past six months. Thus what is important first, is to get the generation costs down, which for the past six months, was an exorbitant Rs 37 or 10 US cents per unit.
Features
Justice and democracy in Sri Lanka’s new political era
The legal processes are steadily closing in on some of the most controversial cases that have remained as open questions without closure for many years. These include the Easter Sunday bombings of 2019, the Treasury bond scam that erupted in 2015, and a range of corruption allegations that became synonymous with successive governments over the past two or more decades. What once appeared to be stalled investigations are now showing signs of movement through the courts and investigative agencies. Recent developments suggest that these long running cases are entering a decisive phase. In the Easter Sunday attacks investigation, new arrests and investigations have brought renewed attention to allegations that extend beyond the immediate perpetrators and into questions of intelligence failures and possible political complicity. The arrest and detention of former intelligence chief Suresh Sallay under the Prevention of Terrorism Act has intensified public interest in uncovering the full truth behind the attacks.
The Treasury bond scam has also re-entered the spotlight. The Supreme Court has recently overturned legal obstacles that had prevented prosecutions from proceeding and directed that the case moves forward expeditiously. This has reopened one of the most sophisticated financial scandals in the country’s recent history and brought several prominent political and financial figures back under legal scrutiny. As those implicated in these unresolved cases are leading figures from previous governments, which have spanned both sides of the political divide since Independence, it can well be imagined that there is tremendous opposition to the gradually enveloping legal processes that is both seen and unseen.
These cases that are now being investigated cut across political camps and involve individuals who occupied some of the highest offices in the country. The result is that resistance to accountability is likely to emerge from many quarters. Still to be opened are the thousands of cases of persons gone missing during the war. Presidential Commissions have been appointed with regard to them, but there has been no serious investigations of the type now taking place.
In these circumstances, it can be surmised that the government led by those who are new to power would wish to retain a maximum of power to face the pushback that is bound to emerge from those in the opposition who have wielded power for generations. The government may calculate that this is not the time to disperse authority or reduce the instruments of state power available to it. Instead, it may believe that a period of centralised control is necessary if investigations, prosecutions and reforms are to proceed without interference.
Provincial Elections
It appears that the opposition’s efforts to mobilise the people and public opinion against the government have not been successful so far. One such instance was the attempt to generate opposition to price increases. Although people have undoubtedly been affected by rising prices and economic difficulties, these efforts failed to gather significant momentum. Another attempt came when President Dissanayake predicted that opposition politicians would face imprisonment in the month of May as legal cases progressed, though this has not happened. Critics claimed that such remarks suggested an intention to influence judicial outcomes. Yet this criticism also failed to gain traction among the public. The likely reason is that public memory remains fresh. Many people continue to associate previous governments with economic mismanagement, corruption scandals, abuse of power and the eventual economic collapse. In comparison, the present government continues to enjoy a reservoir of public goodwill and credibility. As long as legal action appears to be based on evidence and proper process, the public seems prepared to give the government the benefit of the doubt.
The government’s deliberate and cautious approach to political reform that would reduce its centralised power needs to be seen in this context. The monthly approval by Parliament of the emergency regulations is justified by the government as due to the continuing need to respond to the devastation caused by Cyclone Ditwah. However, when viewed together with the reluctance to hold provincial council elections on the grounds of electoral reform, the failure to repeal the Prevention of Terrorism Act and the postponement of constitutional reform, they all appear to reflect a preference for retaining maximum control at a politically sensitive moment. There is a logic to this approach. Governments facing major legal and political confrontations often seek stability and control. So does every despot. However, there is also a downside.
When political competition is denied to legitimate outlets, it often finds expression in confrontation, obstruction and polarisation. The advantage of prioritising the conduct of provincial council elections at this time is that it could reduce the political pressures that are building up. The main opposition parties are united in calling for these elections to be held. Conducting them would provide an opportunity for opposition political parties to obtain a measure of democratic representation and political authority at the provincial level. This would be especially true in the northern and eastern provinces, in which the ethnic and religious minorities predominate. It cannot be forgotten that the provincial council system was developed as a constructive response to the ethnic conflict. Elections at the provincial level would create opportunities for a new generation of political leaders to emerge through democratic competition rather than patronage. Many of those now facing legal scrutiny belong to an older generation to whose needs the younger may be less deferential.
Two Pillars
Another reform that could command bipartisan support is the repeal of the Prevention of Terrorism Act. The PTA has once again become controversial because it is being used in situations that extend beyond its original purpose. The detention of former intelligence chief Suresh Sallay under the Act, the continued incarceration of some Tamil detainees from the war period, and the arrest of individuals accused of speech related offences have all revived concerns regarding prolonged detention without trial and excessive executive power. The reason the PTA has been difficult to repeal is that it is closely associated with concerns regarding national security and territorial integrity. Introduced in 1979 as a temporary measure to confront the emerging separatist conflict, it survived through decades of war and has remained on the statute books long after the conflict ended.
At the same time, history shows that extraordinary powers are likely to be misused. Laws that permit detention without trial or broad executive discretion are rarely confined to their original purpose. Governments of different political parties have used such powers against opponents and critics. The temptation to do so is inherent in the possession of unchecked authority. The way forward could therefore be a combination of accountability and reform. The government should continue to support independent investigations and prosecutions in major corruption and security related cases. Demonstrating political will in this regard would strengthen public confidence in the rule of law and reinforce the principle that no individual is above the law. The PTA could be replaced with legislation that amends the Criminal Procedure Code and Penal Code in a manner that addresses legitimate security concerns while complying with democratic norms and human rights standards.
There are also international dimensions to consider. The European Union has repeatedly linked governance and human rights reforms, including reform of the PTA, to Sri Lanka’s continuing access to the GSP Plus trade concession. Progress on these issues would strengthen Sri Lanka’s international standing at a time when economic recovery remains a national priority. The government has a rare opportunity. It possesses a strong electoral mandate, public goodwill and a reputation for integrity that previous governments lacked. It can combine the pursuit of justice in long delayed cases with meaningful democratic reforms that reduce political resistance and broaden public support. At this time, accountability and power sharing are the two pillars which Sri Lankans need to be committed to build a just and democratic society for a better future without delay. Failure now would make for a long period of waiting for the next time.
by Jehan Perera
Features
Pitfalls and exclusions in academic recruitment
A public university relies on its teachers in fulfilling its responsibilities to the wider community. While teaching remains the chief responsibility of the academic staff, they also conduct research and play a central role in keeping the university a vibrant space where they and students can freely participate in conversations that concern not just routine classroom education but also society at large. The broader intellectual culture and intellectual integrity of a university thus depend on how its academics perform their functions. Therefore, universities should take the task of recruiting their academics seriously. It is important to ensure that this task is done responsibly, transparently and credibly through a fair, thorough and multi-phased evaluation process.
As both an applicant and a member of selection panels for recruitment, I hold that the recruitment procedures, currently in place in our university system, require radical reforms. Echoing some of the concerns raised by Kaushalya Perera in her Kuppi article on recruitment in March 2026, I focus on the limitations I have observed and experienced, specifically in the recruitment of Lecturer (Probationary) and Senior Lecturer positions. The article also aims to explore how these shortcomings could be addressed.
The Advertisement
Recruitment for Lecturer (Probationary) and Senior Lecturer positions is done through an open-advertisement which also involves an interview with shortlisted candidates. Advertisements are finalised in line with a template issued by the Registrar’s Office. Generally, an initial draft, prepared by the Registrar’s Office, is sent to the relevant academic departments for revisions. The revisions have to be made within the template provided, which allows space for the mention of only specialisation requirements.
It should be noted that not all revisions to the advertisement, suggested by the Department Head, are accepted in the next round. Deans, Vice Chancellors and Registrars, who have very little understanding of the disciplines associated with the position, sometimes reject the changes proposed by the Department. Technocratic in their thinking, they don’t recognise that an academic programme can be taught by persons with specialisation in another overlapping discipline. For instance, a position in English, at a university in Sri Lanka, is very well suited to not just those who have postgraduate qualifications in literary studies but also those who are from the disciplines of Applied Linguistics, Cultural Studies or Translation Studies, as these areas are taught as sub-fields of English studies at most universities in the country. These disciplinary overlaps, even when pointed out by Heads, are often overlooked by our administrators.
In place of this process, dominated by academic administrators and registrars, the advertisement should ideally emerge, from the relevant department, in the form of a comprehensive job description. It should mention the nature of the position advertised, the kind of teaching (and research) expected, how the position relates to other positions in the department, in terms of specialisation and workload, and the ways in which the recruited candidate would contribute to overall institutional development.
There can be no one-size-fits-all model when it comes to recruitment. Individual departments vary in size, strength and specialisation requirements. Departments with sizable academic staff may want to emphasise specialisation during recruitment, whereas smaller departments may prefer generalists who can handle a wide-array of courses. Specifying the rationale for the requirements included in the job description may help potential applicants get an understanding of the position advertised and the selection panel to conduct the evaluation process in a fair manner.
Review of Applications
Once applications are received, we sometimes find promising candidates but with qualifications that don’t carry in their title the name of the discipline or the department in which the position is advertised. Sometimes the disciplines or fields of specialisation that appear in the advertisement and the ones that appear in the qualifications are not identical in nomenclature, even though the research undertaken by the applicant during their graduate studies is strongly relevant to the position advertised. Even when such applications are accompanied by strong and relevant publications, our system does not view them positively. Instead, nomenclatural differences are used to reject promising candidates. Such differences are also used as a pretext when universities want to exclude a candidate for their cultural background, political beliefs or other reasons. Even if academic departments recognise such applications, at the next stage, the administrators of the university try to veto them. We lose inter-disciplinary scholars of high academic standing because of the high-handedness of university administrators.
Selection Panels
Selection panels for academic positions typically comprise the Vice Chancellor, the Dean of the Faculty, the Head of the Department, two academics nominated by the Senate and two members of the University Council. In the case of programmes/disciplines jointly housed under a single department, if the Head comes from a discipline other than the one in which the position is advertised, they may not be able to contribute in an informed manner to the recruitment process. However, some Heads refuse to appoint nominees from the relevant discipline in their place as they view sitting on selection panels as their exclusive privilege.
Sometimes university Senates do not take the appointment of Senate nominees seriously. These appointments are decided in a hurry without serious deliberations at senate meetings packed with numerous agenda items. Sometimes even if the relevant department has suitable academics to serve as Senate nominees, the Senate chooses academics from other departments or disciplines who do not have a nuanced understanding of the requirements of the position advertised and its disciplinary parameters. Sometimes specialists in the relevant discipline may not be available at a university. On such occasions, Senates tend to fill up the positions with academics from other disciplines, instead of inviting external nominees from other universities. At a state university in Sri Lanka, I was interviewed thrice for academic positions by selection panels that comprised not even one specialist from the relevant discipline.
The Marking Scheme
The marking schemes used in recruitment have their own drawbacks. Publications are sometimes evaluated for their quantity rather than quality. The opinion of the subject specialist is not sought or taken seriously when a candidate’s research is evaluated. This is why our universities are saddled with academics who engage in plagiarism or predatory publishing. The evaluation process should be tightened in such a way to bar the entry of those who lack academic integrity.
It is worrying to see that marking schemes and schemes of recruitment penalise applicants who have excelled in their graduate studies and are well-reputed for their recent research and publications just because they did not earn a first-class or second-class upper-division pass at the undergraduate level. Our narrow focus on a candidate’s first degree prevents us from giving due recognition to how that person has gained intellectual depth over the years. Some marking rubrics, which allocate points for eye-contact and posture during the interview, dilute the seriousness associated with the academic position, de-prioritise scholarship and turn the interview process into a stage performance.
Cultural Credibility
In recruitment, many universities look for cultural credibility (a term that I borrow from the work of Sulaxana Hippisley) as an unwritten requirement. Some departments are reluctant to hire applicants who are not their alumni. Some selection panels discriminate against candidates from certain ethnic or religious backgrounds. In some departments, women are rejected because they are likely to go on maternity leave or have more domestic responsibilities than men. Gender and sexual minorities have to mute and censor their identities at interviews because they are likely to face rejection if they openly declare their orientation. We have no policies and procedures in place to ensure recruitment is conducted in an inclusive way that sees diversity as a strength.
The Way-forward
When recruitment fails, the entire intellectual culture of that university takes a hit, and several generations of students are affected. Some of the current problems, related to quality in our higher education system, stem from bad recruitment policies and practices. Instead of trying to address these issues through rigorous and inclusive recruitment practices, we try to seek solutions via band-aids like quality assurance and workshops on curriculum writing and pedagogy for university academics.
In developing alternative recruitment policies and practices, we have to demand that the needs and expectations of individual departments are heard. Our selection panels should include more subject specialists than administrators and council nominees. Most of the evaluation should be completed before the interviews, and interviews should be treated as opportunities to get to know candidates in person and pose clarifying questions rather than as occasions for full-scale evaluation. We have to be open and receptive to new, inter-disciplinary scholarship and cultural, ethnic and gender diversity. If we are unwilling to introspect and bring about these reforms and revise our marking schemes, we will continue to recruit the wrong candidates and thereby fail our students and the wider community.
Mahendran Thiruvarangan is a Senior Lecturer attached to the Department of Linguistics & English at the University of Jaffna.
(Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.)
by Mahendran Thiruvarangan
Features
Rocking scene … in Japan
Chitral ‘Chity’ Somapala, now based in Sweden, has been active in the music scene for many years, and is known for his hard rock work with European bands like Firewind, Power Quest, and Avalon.
In Sri Lanka, he’s a household name and that’s the reason why he checks out the local scene, on a regular basis, keeping rock music lovers in the groove.
His shows are invariably ‘full house’’ events.
Sri Lanka’s rock star is now ready to do the needful … in Japan, and rock fans in that part of the world are already gearing themselves up for a rock explosion, with Chitral in the spotlight.
The show is scheduled for 03rd October, 2026, at the Hattori Ryokuchi Park, in Osaka, with Wayo.
The blast off is from 1.00 pm onwards.
However, before he checks out the Osaka scene, Chitral has another important date in his itinerary – a spectacular Sri Lankan musical extravaganza at the Sydney Opera House, in Australia.
The concert is titled Rhythms of Sri Lanka and will be held on 23rd August, 2026.

Back in Colombo soon to oblige local rock fans
Although Chitral Somapala is, indeed, a big name, as a rock artiste, he also revives the music of his parents, as well, often performing their music, along with his own songs, at live programmes.
In fact, the album ‘Dambulugale’, released in 2018, which is a tribute to his parents, famous Sri Lankan musicians P. L. A. Somapala and Chitra Somapala, turned out to be a massive hit, not only in Sri Lanka, but with Sri Lankans the world over.
The album, a compilation of various cover songs, previously written and performed by his parents, was dedicated to Chitral’s parents, and released on the 70th anniversary of Sri Lanka’s independence.
He also dropped ‘Chitral Somapala Live In Concert’, in 2023, with 22 tracks, and has several other releases to his credit.
Besides his rocking career, Chitral was asked by veteran film directors Chandran Rutnam, Asoka Handagama, Priyantha Colombage, Udayakantha and Shameera Naotunna to contribute his talent for their soundtracks, and he won a Presidential award and an International award for the movie ‘Let Her Cry’ by Asoka Handagama.
Chitral will be back in Colombo soon with another rocker for his fans, so watch out for Rock Meets Reggae.
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