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Water tariff revision in line with project funded by ADB

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Ratnayake and Minister Thondaman at the meeting where a USD 200 mn ADB loan was announced.

Ministry Secy. contradicts PM’s Office over denial of Cabinet approval

By Shamindra Ferdinando

The recent water tariff increase has been in line with an agreement between the Wickremesinghe-Rajapaksa government and the Asian Development Bank (ADB).

According to the Water Supply and Estate Infrastructure Development Ministry, the USD 200 mn loan has been announced, following a meeting at the Presidential Secretariat, attended by President’s Chief of Staff Sagala Ratnayake, on 05 July. The ADB was meant to carry out a water reforms programme, the Ministry said.

Subsequently, Water Supply and State Infrastructure Development Minister Jeevan Thondaman (SLPP Nuwara Eliya District), who had jointly chaired the meeting at the Presidential Secretariat, with former Minister Sagala Ratnayaka, issued an Extraordinary Gazette notification pertaining to the new rates, effective from 03 August.

General Secretary of the CWC Thondaman received the relevant Cabinet portfolio in January this year from President Ranil Wickremesinghe.

The Ministry declared that the reforms undertaken were the most ambitious since the establishment of the National Water Supply and Drainage Board (NWSDB), nearly 50 years ago. These comprehensive reforms were aimed at transforming the water sector and ensure sustainable water management for future generations, it said.

The seven-point reforms agenda comprised a) a new water resources policy to effectively manage the country’s water resources; b) the establishment of a corporate strategy for the Water Board; c) a climate resilience roadmap; d) a new tariff policy; e) modern water safety standards; f) the creation of an environmental and social unit within the Water Board; and g) the introduction of public-private partnerships in the water supply sector.

The Ministry has assured regular updates to the public to ensure transparency and accountability throughout the implementation process. However, a statement issued by the Ministry, following the 05 July meeting, hasn’t referred to financial difficulties experienced by the NWSDB.

Minister Thondaman, on 18 July, told Parliament that the government had no option but to increase water rates due to the increase of electricity tariffs by 66 percent. The Minister said that the increase of electricity rates has resulted in water management cost rising to Rs 435 mn. In addition to that, the NWSDB had to settle a Rs 2.4 bn loan, the Minister said, reminding that he informed Parliament last February of the urgent need to increase water rates.

The Minister said so responding to SJB lawmaker Ishak Rahuman. Thondaman revealed that he made available the new water tariffs formula to the Office of the Opposition Leader.

On the same day, Minister Thondaman strongly justified the water rates increase at a media briefing conducted at the Presidential Media Division. The youngest member of the Cabinet explained how an additional monthly expenditure of Rs 500 mn, in addition to substantial monthly losses of nearly Rs. 2.8 billion, and a projected annual loss of Rs. 34 billion, hindered the NWSDB’s ability to meet operational expenses, service debts, and maintain the quality of water supply services.

The increase was driven by several factors, including the surge in electricity tariffs, which contribute significantly to the cost of water production. Additionally, the burden of debt (due to past capital expenditure to expand water infrastructure), compounded by currency depreciation and interest rate hikes, together with the exponential increase in the cost of raw materials required to treat water, added to the financial strain on the NWSDB, the Minister added.

Close on the heels of Minister Thondaman declaring his intention to go ahead with a new tariffs formula, Prime Minister Dinesh Gunawardena’s Office announced the Premier thwarted the move. According to the Premier’s Office, Gunawardena told the Cabinet of Ministers, on 17 July, he couldn’t accept increased water tariffs in a way the poor couldn’t afford.

Revealing that Premier Gunawardena, on three occasions, submitted his recommendations, in respect of Cabinet papers, in this regard, his Office said, on 21 July, that the Cabinet paper, on the new tariff structure, was put off for the third time, due to the MEP leader’s intervention.

Meanwhile, R.M.W.S. Saramadiwakara, Secretary to Water Supply and Estate Infrastructure Development Ministry, in a statement issued on 03 August, contradicted the Premier’s Office, pertaining to its claim that a decision on the new pricing formula was not taken on 17 July.

Samaradiwakera said that the new formula received the approval of the Cabinet of Ministers on 17 July. Having explained the circumstances leading to the latest price revision, the Ministry Secretary said that in terms of the agreement with the ADB, a new pricing formula would be introduced.



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Harsha flays govt. over plan to pass coal, Treasury losses to public

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Harsha de Silva

Chairman of the Public Finance Committee Dr. Harsha de Silva, MP, yesterday (31) said that the National People’s Power (NPP) government was going ahead with a controversial move to pass on the massive losses caused by the coal scam to the public. The government also intended to recover USD 2.5 (approximately Rs 800 mn) lost by the Treasury from the people by introducing an amendment to the Budget, the Opposition lawmaker alleged.

Dr de Silva said that the government had been compelled to increase the supply of diesel for the oil-fired power plants to meet the Norochcholai generation shortfall due to the use of substandard coal.

Responding to The Island queries, the former State Minister said that regardless of repeated assurances that electricity consumers wouldn’t be burdened for the lapse on their part, the government, in writing, has assured the International Monetary Fund (IMF) to recover the losses from the public. This came to light after the IMF released the Letter of Intent submitted by the government following the completion of the combined Fifth and Sixth Reviews under the Extended Fund Facility (EFF) programme to receive USD 695 mn.

Commenting on the specific assurance as regards the upward revision of fuel prices and electricity tariffs, MP de Silva pointed out the government’s assurance of its commitment to cost-recovery pricing for fuel and electricity meant that subsidies provided to ease the burden on households and businesses would remain within budgeted limits and be phased out by the end of September 2026.

Welcoming the USD 695 mn IMF loan, MP de Silva said that in terms of the agreement between the government and the IMF, the relief would end once Rs 100 bn allocated to provide relief was spent on subsidies on fuel (Rs 57 bn), electricity (Rs 15 bn) and the rest on ‘Aswesuma’ social welfare scheme and fertiliser.

MP de Silva said that the crisis should be examined taking into consideration that Sri Lanka paid very high prices to procure fuel in the wake of the continuing turmoil in West Asia. He noted that having perpetrated a coal scam the government could not under any circumstances absolve itself of responsibility for the skyrocketing electricity tariffs.

Commenting on the Sri Lanka-IMF agreement, lawmaker de Silva lambasted the government for utterly chaotic and poor management of the economy. Severe criticism was directed at the government over the rapid depreciation of the rupee against the USD and the NPP’s pathetic performance. Amidst speculation that De Silva may switch allegiance to the NPP, the MP also posted a video in which he flayed the government alleging the NPP couldn’t take forward measures taken by former President Ranil Wickremesinghe.

MP de Silva explained how the people would end paying for the theft of USD 2.5 by way of an amendment to the Budget. The MP told The Island that assurance meant that the government acknowledged that there was no hope of recovering USD 2.5 mn though they talked of investigations and progress being made. De Silva called for a combined Opposition effort to pressure the government to act responsibly in the face of growing challenges.

The government couldn’t lie as the relevant IMF report and the government letter of intent were in the public domain, Dr de Silva said.

by Shamindra Ferdinando

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PM opens Vesak pandals

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The PM opening a Vesak pandal

Two Vesak pandals erected in the Colombo area to mark Vesak Poya were ceremonially opened under the patronage of Prime Minister Dr. Harini Amarasuriya.

The Prime Minister first opened a pandal depicting the Sambula Jataka, constructed by the Sri Vaishakya Society of the Borella Magazine United Traders’ Association. She subsequently attended the opening of another pandal at the Grandpass Kosgas Junction, which portrays the Samudra Vanija Jataka tale, and ceremonially inaugurated it by lighting a traditional coconut-oil lamp.

The event was attended by members of the Maha Sangha, clergy of other faiths, Members of Parliament Dr. Najith Indika, Attorney-at-Law Lakmali Hemachandra and Dilith Jayaweera, Deputy Inspector General of Police Nihal Thalduwa, former Member of Parliament Thilanga Sumathipala, and President of the Magazine United Traders’ Association Palitha Herath, among others.

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UNP challenges NPP move to amend Vihara – Devalagam Act

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The UNP yesterday said that the government did not have the power to establish a Dharma Court. According to the Constitution, neither the executive, the legislature nor the judiciary had the power to interpret the Dharma, it added. The power to pass laws on disciplining the clergy had been granted to Parliament in terms of Article 105 of the Constitution, the UNP said, emphasising that the ultimate powers lay with the committees of the respective sects.

The UNP said so in response to President Anura Kumara Dissanayake’s recent speech that a concept paper had been submitted for amending the Vihara – Devalagam Act and the Cabinet had approved it. The President further stated that he had held a discussion with the Registrar, the Commissioner for Buddhist Affairs and the Attorney General. It is not known whether he discussed the matter with the Buddhist MPs in the Opposition.

Excerpts of the statement issued by former President Ranil Wickremesinghe’s Office: ” President Anura Kumara Dissanayake has recently publicly agreed to a call to take the same measures as previous kings in cases where the Buddhist religion is distorted under the guise of Dhamma.

Over our history we have seen some kings kill the Sangha during their reigns. The JVP also killed the Sangha in the same way during the years 1987-89.Kotikawatte Saddhatissa, Weltota Pangnadassi, Beligalle Mahinda, Kumbagoda Gnanaloka, Athurugiriya Pangnatissa, Soragune Pangnasara, Pelpola Dharmapala, Kandy Dhammarakkhitha and many other monks are included in the list of the JVP’s assassinations.

Apart from shedding the blood of the Buddha, the greatest sin that Buddhists can commit is the killing of the Sangha.  The JVP has not apologised for the killings. Is it moral for the President to accept this invitation without first taking this step?

In addition to killing the Sangha, the JVP also looted valuable historical items from the monasteries and temples.

The JVP has never accepted that Buddhism should be given priority politically. The JVP has always acted against Buddhism.

A major question that arises from this is whether the JVP, which has a history of killing monks, can do such a thing after taking power. What is the hidden motive here?

Mr. J. R. Jayewardene took steps to include a separate chapter in the 1978 Constitution to take necessary measures for monks who behave undisciplined and engage in crimes.  Provisions were made for the establishment of a Sangha Court to decide on the discipline of monks.

What did the NPP government done during the Sinhala and Tamil New Year? It disrupted all the auspicious signs. While the whole world was celebrating Vesak Poya on May 1st, the Vesak Poya day in Sri Lanka was postponed to a later date in order to hold political rallies.

There is no objection to taking action against unruly monks. But there is a procedure for how to discipline monks. Cabinet papers related to this should be prepared and presented to the Maha Sangha led by the Mahanayaka Theros and then a decision should be taken. Everything should be carried forward according to the existing tradition in the country.

The President has also expressed his views on taking monks to court. He has expressed such views without understanding the tradition. Taking wrong-doing monks to court in their robes is not something that only happened yesterday. Thalduwe Somarama and Mapitigama Buddharakkhita were presented to court wearing their robes for the assassination of Mr. Bandaranaike and later their robes were removed. This is not limited to monks. Father Mathew Peiris first came to court for legal proceedings wearing his robe. Accordingly, the monks who are currently acting in an undisciplined manner must also follow the same procedure that was implemented earlier.

The President mentioned in his speech that a concept paper was submitted for amending the Vihara – Devalagam Act and the Cabinet agreed to it. The President further stated that he had held a discussion with the Registrar, the Commissioner for Buddhist Affairs and the Attorney General. It is not known whether he had discussed this matter with the opposition Buddhist parliamentarians. This work has all been done only by the government without any consultation.

The government does not have the power to establish a Dharma Court. According to the Constitution, neither the executive, the legislature nor the judiciary have the power to interpret the Dharma. The power to pass laws on disciplining the clergy has been given to Parliament under Article 105 of the Constitution. However, the final powers lie with the committees of the respective sects. At present, this work has been done by the cabinet, officials and a handful of monks of a government that does not accept Buddhism.

The temples with the most assets and properties today are in the monasteries and temples that fall under the Vihara – Devalaya Village Act.  It is no secret that the Janatha Vimukthi Peramuna (JVP) is taking the position that these temples should be taken under government control. There is a strong suspicion that the Dharma Court is being created for this purpose.

An organized program to destroy Buddhism is being implemented today through government-affiliated social media. A section of civil society is also involved in it. What is always happening today is the marginalization of the Buddhist monastic-lay opinion.In the President’s speech, a reference was also made to the holding of the World Buddhist Congress in this country under the current government.

Such a situation is also indicated in the Vasala Sutta.

“Na jaccha vasalo hoti,

Na jaccha hoti brahmano;

Kammana vasalo hoti,

Kammana hoti brahmano”

Its Sinhala meaning is as follows.

“One is not a householder by birth.Nor is one a Brahmin by birth.One becomes a householder or a Brahmin by one’s actions.”

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