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‘Unbundling’ of electricity sector to figure in sweeping energy reforms

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Eng. Pubudu Niroshan Hedigallage

By Ifham Nizam

In a bold move that promises to reshape Sri Lanka’s energy future, the Ministry of Energy has confirmed the initiation of sweeping reforms to modernize the country’s electricity sector, inclusive of the ‘unbundling’ of the sector into three distinct functions.

Spearheaded by the newly formed Power Sector Reforms Secretariat (PSRS), these reforms aim to create a sustainable, competitive, and people-centric energy landscape, laying the groundwork for a new era in energy generation, transmission and distribution.

At the helm of these reforms is Eng. Pubudu Niroshan Hedigallage, the newly appointed Director General of PSRS. A veteran energy policy expert, Hedigallage previously played a pivotal role in the creation of Sri Lanka’s Energy Policy Framework 2024.

He is joined by a team of renowned professionals, including Prof. Lilantha Samaranayake, Eng. Kosala Kamburadeniya and Dr. Indra Mahakalanda, all of whom bring their expertise and deep understanding of the energy sector to drive this transformative journey.

“We are not merely restructuring the sector,” says Hedigallage. “We are creating an energy ecosystem that serves the people—efficient, transparent, and sustainable. Our goal is to build a system that evolves with the future, while aligning with the immediate needs of the people.”

The PSRS’s reform agenda centers on several key objectives that will revolutionize the sector, with the unbundling of the electricity industry expected to be completed by June 2025.

The reforms’ core feature is the unbundling of the electricity sector into three distinct functions: generation, transmission, and distribution. This segmentation aims to enhance operational efficiency and allow for the creation of a strong single-buyer market, overseen by an Independent System Operator (ISO). While this will foster better competition, critical infrastructure such as transmission and distribution will remain firmly under state control, ensuring public ownership and safeguarding the national interest.

Moreover, the reforms are designed to encourage private sector investment, particularly in renewable energy generation. Eng. Hedigallage notes that the reforms will strike a careful balance—ensuring state ownership of essential infrastructure while opening doors for private innovation in power generation, especially in renewable sources like solar and wind.

Another significant aspect of the reforms is the shift towards empowering consumers to become “prosumers”—active participants who can generate electricity, often through renewable sources and feed it back into the grid. This decentralized approach is expected to reduce dependency on traditional power plants and contribute to a cleaner, more sustainable energy future.

The phased implementation of these reforms will also create the conditions for the eventual establishment of competitive wholesale and retail electricity markets, with the ultimate goal of creating a fully mature, market-driven energy system by 2030.

The PSRS team emphasizes that these reforms are not merely a technical overhaul—they are informed by cutting-edge academic research, data-driven strategies, and long-term planning.

One of the most ambitious goals of the reform agenda is the creation of a democratic and inclusive energy system. The PSRS envisions a future where Sri Lankans are not only consumers of electricity but active participants in its generation and distribution. The transition to renewable energy sources is seen as central to achieving both the country’s energy security and its climate goals.

“Our mission is about more than infrastructure or policy, says Hedigallage. “We are building a future where every citizen can play a role in energy production, consumption, and sustainability. This is an inclusive, fair, and environmentally sustainable energy system.”

The reforms are being rolled out in a phased timeline, with clear milestones set for each stage:



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Charting a worker-centered AI future: Colombo hosts landmark ITF conference

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The ITF’s first-ever AI-focused global conference and the first of its kind hosted in Sri Lanka

By Sanath Nanayakkare

Artificial intelligence and automation present serious challenges for workers – such as job consequences seen in docks and rail systems – and emphasises that workers cannot simply stop technological progress. By gathering young trade unionists in Sri Lanka, the ITF aims to establish key principles for engaging with technology, ensuring workers have a strong voice at the bargaining table, and encouraging constructive social dialogue with corporations and governments.

These compelling words from ITF General Secretary Stephen Cotton underscored the urgent reality facing modern labor as rapid technological advancements sweep across global industries.

Confronting this shifting landscape head-on, the International Transport Workers’ Federation (ITF), in partnership with the National Union of Seafarers of Sri Lanka (NUSS), convened a ground-breaking conference on artificial intelligence in Colombo from September 15–17.

As the ITF’s first-ever AI-focused global conference and the first of its kind hosted in Sri Lanka, the landmark event marked a critical milestone in balancing technological innovation with worker-centered safeguards.

Representing over 16.6 million transport workers worldwide, the ITF designed the gathering to tackle the multifaceted impacts of AI on safety, operations, workforce development, and governance. Rather than resisting progress, the conference focused on proactive engagement, establishing guiding principles to protect workers’ rights and privacy both at sea and on land.

Key discussions centred on sharing best practices for upskilling and reskilling transport personnel, ensuring that human oversight remains central to AI-driven logistics, routing, and maintenance.

Reflecting on the historic nature of the event, Boa Athu, CEO of National Union of Seafarers Asia Pacific, noted that the conference represented a monumental moment as AI emerges as a permanent fixture of contemporary life.

Highlighting NUSS’s pride in hosting the event in Colombo, Athu emphasised that AI offers transformative potential when guided by strong social dialogue, equitable access to training, and robust governance safeguards.

Ultimately, the Colombo conference demonstrated that the future of transport must be shaped by those who keep the world moving. By uniting international labour leaders, affiliates, port operators, and regulators, the event laid a vital foundation for inclusive policy frameworks that champion fair labour standards, securing a powerful voice for workers in an automated tomorrow.

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Bridging the digital divide: Sri Lanka’s airport licence challenge

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As tourism surges from digitally advanced markets like India, modern independent travelers arriving at BIA find themselves caught in a mismatch between cloudstored credentials and local paper-based transport protocols.

By Sanath Nanayakkare

As Sri Lanka experiences a surge in visitors from its largest tourist market, India, a modern administrative hurdle has emerged at Bandaranaike International Airport (BIA).

While nations like India and Pakistan have successfully transitioned to fully digital driving licences and cashless ecosystems, Sri Lanka’s Department of Motor Traffic counter still requires a physical card to issue temporary local permits, The Island Financial Review learns.

This mismatch creates significant friction for independent travelers who rely entirely on smartphones and cloud-stored credentials. Tourists turned away at the airport – and sometimes redirected to the Werahera office in vain – find themselves unable to legally rent and drive vehicles. Consequently, this policy gap harms local car rental operators, causes tourist frustration, and deprives the government of valuable permit revenue.

The situation highlights a distinct irony: Sri Lankan motorists easily travel abroad using International Driving Permits that are readily accepted in India and Pakistan, yet local infrastructure cannot reciprocate due to outdated verification systems.

Recognizing the problem, Department of Motor Traffic officials have noted that upgrades and new equipment are currently in the works to integrate foreign digital platforms.

For a nation aggressively pursuing a national digitalisation drive, rapidly modernising these transport protocols is essential to keeping pace with global travelers and unlocking the full potential of its tourism economy.

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International Afro-Latin Dance Festival in Colombo to grow into a larger regional tourism draw

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Founder X Director – ALIF – J D RUBAN

ALIF-SL, Sri Lanka’s first-ever international Afro-Latin dance festival, returns for its 4th edition from 25 to 27 September 2026 at the Galle Face Hotel, Colombo. The festival will bring together over 30 international and national artists and 175–200 participants from more than 20 countries, reaffirming its place as the region’s leading platform for Salsa, Bachata and Kizomba.

This year’s edition is headlined by Tropical Gem, the world’s No. 1 salsa team, travelling from Italy to perform and teach alongside a stellar international line-up. Attendees can also look forward to the ALIF Cup Sri Lanka Open, a keenly contested competition judged by an international panel, giving local dancers a rare opportunity to compete and connect with world-class talent.

“Every year, ALIF connects Sri Lanka to the world. With this year’s artist line-up and the ALIF Cup competition, we’re not just hosting a festival, we’re putting Sri Lanka on the map as a top destination for dance,” said JD Ruban, Founder and Director of ALIF-SL

Beyond the dance floor, ALIF-SL continues to support Sri Lanka’s tourism sector, drawing dancers, judges and enthusiasts from across the globe to Colombo and positioning the capital as an emerging regional hub for social dance. Organizers plan to grow the festival into a larger regional tourism draw, introduce new competition categories, and bring in even bigger headline acts in future editions.

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