News
Wajira says new tax formula meant to consolidate economy
UNP lawmaker Wajira Abeywardena yesterday (03) claimed that the proposed new tax structure would be beneficial to the ordinary people.
The National List MP warned that holding of Local Government polls as scheduled before March 20 would be detrimental to the ongoing efforts to stabilise the economy. The former minister said so addressing the media at ‘Sirikotha’ where he lambasted the Opposition for demanding Local Government polls.
MP Abeywardena said that further printing of currency notes to conduct proposed election would undermine ongoing efforts to stabilize troubled economy. The former Galle District MP succeeded Ranil Wickremesinghe after the latter was elected by a majority vote in parliament to complete the remainder of Gotabaya Rajapaksa’s five-year term as the President.
Lawmaker Abeywardena alleged that though President Ranil Wickremesinghe promised to adopt system change proposed by youth, the Opposition was continuing with the old strategies meant to destabilize. Underscoring the pivotal importance of implementing the new tax formula at least for some period, that would be crucial to reviving the national economy.
The MP expressed confidence that the runaway inflation could be controlled by implementing the new tax formula. Led by the Government Medical Officers’ Association (GMOA) , professionals are up in arms against the new tax structure which they alleged would influence many families to leave the country.
The UNPer questioned the need for Local Government polls at this juncture as it wouldn’t cause change of government and may result in further burden on hapless public.
The former minister said that those who had been trying to undermine the government conveniently forgot how President Wickremesinghe took tangible measures to restore supply of essential items within weeks after he assumed the presidency. President Wickremesinghe brought an end to untimely deaths at various fuel and gas queues across the country.
In spite of continuing economic problems, President Wickremesinghe’s government was working overtime to improve the situation and stabilize the country in 2023, the MP said, while explaining specific measures taken by the government after the UNP leader assumed presidency in July 2022 (SF)
During an operation conducted in the dark hours of 01 Jan 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 11 Indian fishermen while they were poaching in Sri Lankan waters, off Kovilan of Kareinagar, Jaffna.
The Northern Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the Northern Naval Command were deployed to drive away those Indian fishing boats from island waters off Kovilan.
Meanwhile, compliant boarding made by naval personnel resulted in the seizure of one Indian fishing boat and apprehension of 11 Indian fishermen who continued to engage in illegal fishing in Sri Lankan waters.
The seized boat (01) and Indian fishermen (11) were handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.
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Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund
Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.
Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.
The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.
The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.
Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.
The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.
According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.
Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.
The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.
In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.
The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.
The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.
Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.
By Sujeewa Thathsara ✍️
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Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund
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