Editorial
Warning of power cuts: El Niño and corruption
Wednesday 26th August, 2026
The Public Utilities Commission of Sri Lanka (PUCSL) has warned of possible power cuts due to the prevailing El Niño phenomenon. It has said demand for electricity could rise steeply under the prevailing weather conditions, with power generation declining, if water levels in the hydropower reservoirs recede drastically. One may recall that long before the onset of El Niño, experts predicted that power cuts would have to be imposed as substandard coal stocks, procured allegedly in a fraudulent manner, had led to a generation shortfall at the Norochcholai coal-fired power complex. They also pointed out that it would not be feasible to increase the output of hydropower and oil-fired power plants indefinitely to compensate for the shortfall. But the government ignored expert opinion for political reasons. Going by the PUCSL warning, the situation has now come to a head, and the government is apparently left with no alternative but to impose power cuts.
Curiously, Director of the Water Management Secretariat of the Mahaweli Authority Nilantha Dhanapala sounded optimistic about reservoir water levels when he addressed the media the other day. He said the Mahaweli reservoirs were at 55% of capacity, with those used for hydropower generation and irrigation at 64% and 52%, respectively. Water levels in reservoirs under the Irrigation Department had reached 49% of capacity, he said, noting that the Mahaweli, Walawe and Kelani systems were at 54%, 57% and 93%, respectively. He described the overall reservoir levels as “good”. If so, why is the PUCSL so concerned about the major hydropower reservoir water levels to the extent of warning of possible power cuts?
As for the PUCSL warning, there are two possibilities. Either the picture is not as rosy as Dhanapala has made it out to be, and the government cannot sustain hydropower generation at the current level due to the impact of El Niño, or there is enough water in the hydropower reservoirs, as claimed, but the cost of running oil-fired power plants has become unbearable.
Prime Minister Dr. Harini Amarasuriya has recently informed Parliament that fuel import expenditure significantly increased during the first half of the current year, compared to the corresponding period in 2025. She has said that about USD 3,168 million was spent on fuel imports during the first six months of 2026, but fuel cost only USD 1,995 million during the first half of 2025.
Chairman of the Sectoral Oversight Committee on Infrastructure and Strategic Development, SJB MP S. M. Marikkar, has told Parliament, quoting from a PUCSL report, that due to substandard coal imports, Norochcholai was unable to generate about 300MW of power needed to meet electricity demand between Jan. 1 and June 30, 2026, resulting in additional expenditure of Rs. 8,536 million on oil-fired power generation to make up for the shortfall.
Instead of having the coal procurement scam under his watch probed urgently in keeping with his promise to ensure transparency and accountability, President Anura Kumara Dissanayake sought to obfuscate the issue by appointing a Presidential Commission of Inquiry to investigate coal procurement from 2009 to 2026. JVP General Secretary Tilvin Silva said in his May Day speech this year that the Presidential Commission would exonerate those from the NPP government of wrongdoing and find those from the opposition guilty. Subsequently, he apologised to the Commission for his remarks at issue, but they can be considered a Freudian slip that revealed the government’s real intention.
According to the Central Bank data, the massive increase in the country’s fuel bill is due to several key factors, such as a surge in international oil prices owing to the Iran conflict, higher import volumes, and higher expenditure on refined petroleum products. These are no doubt causative factors, but the fact remains that the shortfall in Norochcholai’s coal-fired power generation also forced the country to rely more heavily on costly oil-fired power generation, adding to its fuel import expenditure. The Ceylon Petroleum Corporation (CPC) admitted in April that it had bought three shipments of diesel between the last week of March and the second week of April at prices of between USD 288 and USD 281 per barrel. It did so following a revelation by HSBC Group’s CEO, Georges Elhedery, that the highest price he had seen paid for a barrel of oil was USD 286—and that it went to Sri Lanka. Critics claimed that the government had purchased those diesel shipments at extremely high prices because it was desperate to keep diesel-fired power plants running to make up for the drop in Norochcholai’s power output. The additional fuel used for operating oil-fired power plants to compensate for Norochcholai generation shortfall and its cost need to be estimated.
Power cuts are bound to take a heavy toll on the country’s economic recovery efforts. They could lead to lower production, higher costs, weaker exports, and ultimately slower economic recovery. There is no way the government can deny the fact that the questionable coal procurement deals have led to a shortfall in power generation, higher cost of electricity, increased tariffs and the prospect of power cuts.
Editorial
Dons’ frustration and rulers’ nonchalance
Monday 5th October, 2026
The Federation of University Teachers’ Associations (FUTA) has held several media briefings during the past several months to highlight a host of unresolved issues affecting the university system, but the government seems to be unconcerned. Addressing the media, over the weekend, the FUTA raised those problems once again, pointing out that all state universities had been left with only about 5,000 teachers because a large number of academics had already left the country, mostly for economic reasons. The situation was taking a turn for the worse, it warned.
University teachers are among the professionals who played a pivotal role in enabling the JVP-led NPP’s meteoric rise to power, but today they are shouting themselves hoarse in a bid to draw the government’s attention to the problems besetting the university system, but in vain. The same holds true for the state-sector doctors, who have got short shrift from the government, which rides roughshod over the GMOA (Government Medical Officers’ Association) as well as the BASL (Bar Association of Sri Lanka), whose members also campaigned hard for the NPP.
The incumbent government, just like its predecessors, has apparently prioritised a plan to increase the number of universities in keeping with what looks like a politically determined agenda over resourcing and staffing the existing universities adequately. President Anura Kumara Dissanayake, in his wisdom, has promised to establish 50 new universities across the country while almost all state universities are experiencing severe resource constraints, with many academics voting with their feet.
A quality university system cannot be created simply by increasing the number of universities or admitting more students. The need is for a combination of capable academics, adequate resources, institutional autonomy, rigorous standards and a system of accountability. There are certain other conditions that need to be fulfilled for a country to create a vibrant university system that conforms to international standards. First of all, there should be a clear national higher education strategy to establish a diversified, future-oriented tertiary education system that is adequately resourced and staffed.
Universities cannot function properly, much less achieve academic excellence, without enough qualified teachers and appropriate student-to-staff ratios. Adequate and sustained funding, strong research capacity, academic freedom, institutional freedom and rigorous, independent quality assurance, industrial and international links are among the other factors that help ensure the robustness of a university system.
The World Bank’s recent assessment of Sri Lanka’s higher education sector has identified scarcity of qualified academic staff, inadequate research and innovation output and passive student learning among the challenges facing the sector.
FUTA members have told the media that foreign research grants have to be approved by the Cabinet of Ministers; the approval process is frustratingly slow, and therefore universities are without enough funds for research. There are arguments for and against government oversight on research grants, but the real issue is why the government cannot expedite the approval process. Teaching and research are traditionally regarded as inseparable functions of a university. Besides, universities need sufficient freedom to determine curricula, conduct research, appoint staff and make academic decisions without inappropriate political or bureaucratic interference. UNESCO regards academic freedom and institutional autonomy as important conditions for universities to fulfil their teaching and research functions.
It is doubtful whether Sri Lankan governments have learnt from history how other countries achieved their development goals. The OECD (Organisation for Economic Co-operation and Development) has revealed that universities played a central role in the development of the Global North by producing the educated workforce, scientists, engineers, doctors, teachers, administrators and other professionals needed to build modern economies and strong public institutions. They also became major centres of basic and applied research, generating knowledge that helped drive industrialisation, technological innovation and productivity. The OECD notes that universities in most developed economies remain major providers of research and important contributors to the development of new technologies. The rise of strong university systems was not merely a result of development in the Global North; universities themselves helped usher in progress. It is hoped that Sri Lankan policymakers, particularly politicians, will take cognisance of this simple fact.
The incumbent government has raised the retirement ages of judges. It even went to the extent of amending the Constitution amidst protests from national and international organisations, claiming that it had to do so to clear a backlog of cases. It has also launched a substantial programme to recruit and train thousands of police personnel. Why can’t it take similar action urgently to resolve the shortage of university teachers? It should heed the university teachers’ warning; students who qualify for university admission may have to wait for several years before the commencement of their academic programmes, and universities might end up being empty shells.
Editorial
Kaduwela land grab and statist spectres
A private company has complained to the police, alleging that Kaduwela Mayor Ranjan Jayalal and NPP MP Asitha Niroshana forcibly took over a block of land belonging to it in Athurugiriya for a Metro bus stand. Lawyers representing the company have told the media that the police have not acted on their complaint due to political pressure. The NPP politicians remain defiant, insisting that the new bus stand will not be shifted under any circumstances.
Sri Lanka politicians take leave of their senses when power goes to their heads. During previous governments, there were widespread allegations that some politicians got their supporters to encroach on privately owned estates in the Colombo suburbs and then demanded money from hapless owners to remove the squatters, while others openly grabbed houses and land with impunity. These allegations have gone uninvestigated. The 2024 regime change was expected to bring such illegal practices to an end. But in 2025, a group of JVP activists, led by a deputy minister, stormed a party office belonging to their rival faction, the Frontline Socialist Party (FSP), in Yakkala, and forcibly occupied it after assaulting and driving away a group of FSP members. They even showed the police a document, claiming that it was a court order vesting the ownership of the building in the JVP, and the police promptly cordoned off the area and set up a checkpoint to ensure the safety of the JVPers. But in April 2026, the Gampaha District Court ordered the JVP to return the office to the FSP.
The alleged land grab in Athurugiriya is different from the previous ones in that it is not intended to benefit any political party or any private individual as such, but it cannot be countenanced on any grounds. There should certainly be a place for the Metro buses to be parked in Kaduwela, but the government must not bulldoze its way through to acquire private property. It should negotiate with the company concerned and explore the possibility of purchasing the land at the prevailing commercial rate or taking it on lease. If the owner is unwilling to sell or lease the property, the government will have to look for an alternative location. There is no other way out. That is the way such disputes should be settled in the civilised world. The police must be made to explain why they have not instituted legal action against the Kaduwela Mayor and the NPP MP.
The government’s efforts to develop the Metro service deserve praise, encouragement and public support. The state-owned bus service has to be revitalised. However, the development of the Metro bus service cannot be cited in extenuation of high-handed actions, such as the alleged land grab.
It is high time the JVP/NPP politicians and their supporters realised that a popular mandate is not tantamount to a carte blanche and they cannot act according to their whims and fancies. The alleged land grab is bound to have an unsettling effect on investors, particularly foreign investors, given the JVP’s original ideological programme, which bore the imprimatur of its founder-leader Rohana Wijeweera, and the continuing influence of the party’s old guard over the present government. The JVP’s early programme called for far-reaching socialist economic measures, including the abolition of private ownership in several sectors and revolutionary land reform. The forcible land takeover in Athurugiriya not only smacks of statism but also conjures up the failed communist spectres of the past.
The government should take cognisance of what the US says, in its 2026 Investment Climate Statements: Sri Lanka, about land tenure here. Noting that Sri Lanka has made important progress since the 2022 economic crisis, the report says the investment environment remains difficult and unpredictable. It is not simply a negative report: it acknowledges political stability under the NPP government, commitment to the IMF programme. However, it makes specific mention of “tenure insecurity” in the context of weaknesses in Sri Lanka’s land sector. The report lists it alongside land scarcity, fragmented land administration, land degradation, encroachment and land disputes. Tenure insecurity generally means that a person or business does not have sufficiently certain, legally enforceable and transferable rights over the land they occupy or use. But it also means vulnerability to illegal occupation, land grabbing, encroachment or other involuntary loss of land. The World Bank’s definition of ‘tenure insecurity’ is noteworthy. It says tenure security involves protection against the involuntary loss of land, and notes that insecurity can arise from disputes within families or communities, or from the actions of governments or private claimants.
The US investment report provides an important reference to the foreign investors assessing Sri Lanka’s investment climate. The JVP-NPP government therefore should not send the wrong message to investors. In this day and age, news travels almost at subatomic speed, reaching millions of people across the globe within seconds. The government would do well to be mindful of the repercussions of its actions.
Editorial
Fuelling discontent and protest
Saturday 3rd October, 2026
Private fuel bowser owners were up in arms, yesterday, claiming that they were incurring huge losses because the Ceylon Petroleum Corporation (CPC) had not increased commissions for fuel distribution. Unless the CPC responded favourably to their demand for a substantial increase in commissions, they would be left with no alternative but to stop fuel distribution completely with immediate effect, they warned, noting that the CPC had promised to announce its final decision yesterday.
The Ceylon Petroleum Private Tanker Owners’ Association (CPPTOA), which is leading the fuel bowser owners’ struggle, said yesterday that it expected their commission to be raised at least to 20%, as the cost of fuel distribution had increased sharply. A meeting between the CPPTOA representatives and the CPC officials was going on at the time of writing.
It defies comprehension why the CPC lets the grass grow under its feet without addressing issues that have the potential to cripple fuel distribution. The CPPTOA had been protesting for weeks, but the CPC ignored fuel distributors’ demand. It may have expected the problem to go away with the passage of time. Everything possible must be done to prevent pumps from running dry at filling stations, causing hardships to the public and adversely impacting the economy.
The CPC should have taken immediate action at the first sign of trouble and invited the CPPTOA to talks instead of waiting until the eleventh hour. Prudence demands that a game of chicken be averted in a crucial sector like petroleum distribution.
Issues that could cripple the petroleum sector are best sorted out at the negotiating table, which is the ideal place for bargaining. We are not in a position to say whether it is fair for the CPPTOA to demand a 20% commission, but the fuel distributors’ grievances should be addressed and the CPC ought to hold talks with them and negotiate solutions as and when issues crop up. Flexibility is a prerequisite for resolving trade union problems. Intransigence and brinkmanship only aggravate such issues, much to the detriment of the country’s interests. If bowser operators stopped distributing fuel for a couple of days, perish the thought, it would take a considerable time to replenish supplies thereafter, and fuel queues would reappear. Disruptions to fuel distribution could have a domino effect on virtually every other sector of the economy.
The fragile economy, which is recovering from an unprecedented crisis, cannot take any more shocks, and the patience of the public is manifestly wearing thin. Petroleum sector trade unions have claimed that the CPC is selling fuel from older stocks at higher prices, while fuel distributors have called upon the government to scrap the loss-recovery levy immediately, arguing that the CPC’s legacy debt has now been fully repaid. These are the issues the Opposition should take up in Parliament instead of making loud noises that signify nothing.
One can only hope that the CPC and the CPPTOA will resolve the commission issue through negotiations, and the CPC will act more responsibly in the future without trying to wish away trade union issues that could cripple the petroleum sector.
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