<ul><li>PUCSL reveals Rs. 52/unit cost gap</li><li>Ministry urged to correct Cabinet brief</li><li>Old estimate: Rs. 20.15/unit; projected cost: Rs. 35.81-72.11/unit</li><li>Costs may rise if plant underperforms</li></ul> The Public Utilities Commission of Sri Lanka (PUCSL) has raised the alarm over a staggering Rs. 52 per unit discrepancy in the projected cost of electricity generation from the second 300 MW Liquefied Natural Gas (LNG) Combined Cycle Power Plant in Kerawalapitiya.In a letter addressed to the Secretary of the Ministry of Energy on 3 April, the commission has accused the ministry of presenting misleading figures to the Cabinet, calling for immediate clarification and transparency in the interest of public accountability.According to the PUCSL, the Ministry of Energy, in Cabinet Memorandum No.11/2025/P dated 31 January, has stated that the levelised cost of electricity from the Sahasdhanavi Ltd. project will be Rs. 20.15 per kilowatt-hour (kWh).However, the commission has pointed out that this figure is based on outdated assumptions from the 2021 bid submission, including a Natural Gas (NG) price of $ 10 per Metric Million British Thermal Unit (MMBtu), diesel at Rs. 110 per litre, and an exchange rate of Rs. 195 per US Dollar.&nbsp;The PUCSL has stressed that these inputs no longer reflect current economic conditions and energy market realities.Using the financial model submitted by the Ceylon Electricity Board (CEB), the commission has recalculated the levelised cost of electricity, updating it with current market prices and an exchange rate of Rs. 300.75 per US Dollar. Assuming a plant factor of 46%, the PUCSL has evaluated three scenarios.In Scenario 1, with NG priced at $ 11.2 per MMBtu and diesel at Rs. 286 per litre, the levelised cost is Rs. 35.81/kWh.&nbsp;Scenario 2, which includes the terminal costs for LNG at $ 15.5 per MMBtu, brings the cost to Rs. 43.25/kWh.&nbsp;Scenario 3, where diesel is used exclusively throughout the project’s operational life, shows the cost surging to Rs. 72.11/kWh, as stated in the letter.The PUCSL has warned that these figures may rise further if the plant operates below the assumed 46% plant factor, stressing that the Cabinet must be made aware of the true financial burden of the project.&nbsp;Although the PUCSL has approved the draft Power Purchase Agreement (PPA) between the CEB and Sahasdhanavi on 15 April, it has now called upon the ministry to rectify the record and prevent what it describes as a serious misrepresentation of national energy costs.The Cabinet of Ministers has granted approval for the establishment of a second 300 MW LNG-based power plant in Kerawalapitiya, as part of Sri Lanka’s Least Cost Long-Term Generation Expansion Plan for the 2018-’37 period.The approval process began in September 2020, when the then Cabinet had authorised the CEB to develop the proposed power plant, as per the Cabinet memorandum dated 25 August 2020. Following this, an international competitive bidding process was initiated on 21 June 2021, with proposals being submitted by 15 December 2021.&nbsp;After evaluating the bids, the Cabinet-Appointed Negotiating Committee (CANC) had recommended the award of the contract to Lakdhanavi Ltd., the lowest evaluated bidder, in April 2022. In the same month, the PUCSL had approved the draft project agreements, as required under Clause 43 of the Sri Lanka Electricity Act No.20 of 2009.In October 2023, the Cabinet had authorised the CEB to issue a Letter of Intent (LOI) to Lakdhanavi, approving the construction of a 300 MW combined cycle dual-fuel gas power plant in Kerawalapitiya on a Build-Own-Operate-Transfer (BOOT) basis.&nbsp;The Cabinet had further authorised the exploration of cost-saving methods, including sharing infrastructure between the two LNG power plants at the site, to reduce capital costs and lower the levelised tariff. This approval was based on the Cabinet memorandum dated 10 October 2023.However, the project faced several challenges, including changes in tax policies, such as the removal of Value-Added Tax (VAT) exemptions and an increase in VAT rates, which significantly impacted construction costs.&nbsp;Additionally, fluctuations in diesel prices, the devaluation of the Sri Lankan Rupee, and difficulties in securing foreign financing due to the country’s economic conditions led to adjustments in the project agreements.As a result, the levelised tariff was revised from Rs. 19.7302 per kWh to Rs. 20.1545 per kWh.In response to these issues, amendments to the draft PPA have been made, including the introduction of provisions to address diesel price fluctuations and the inclusion of bridging finance as a requirement for achieving financial closure.The current Cabinet has approved the updated PPA in January this year, ensuring the successful implementation of the project.Additionally, the Cabinet has authorised the finalisation of other agreements, including the Liquid Fuel Supply Agreement (LFSA) with the Ceylon Petroleum Corporation (CPC) and the Implementation Agreement (IA) with the Secretary to the Treasury.Furthermore, the Cabinet directed the Controller General of Imports and Exports to grant approval for the necessary advance payments required for importing equipment, machinery, and spare parts for the construction and operation of the power plant.When asked whether the Energy Ministry would submit the PUCSL’s clarified tariff to the Cabinet, Ministry Secretary Prof. Udayanga Hemapala said he did not have that information yet as he was in Bhutan on work.This issue was also raised in Parliament on Thursday (8) by Opposition MP Dr. Harsha de Silva.

300 MW Kerawalapitiya LNG Plant: Cabinet misled on LNG deal?

The State-run Ceylon Electricity Board (CEB) is unlikely to receive an immediate 10% increase in electricity tariffs in June, despite President Anura Kumara Dissanayake’s recent announcement, as the Public Utilities Commission of Sri Lanka (PUCSL) clarified that any revision required a formal tariff submission from the CEB.“We cannot act without a formal submission,” PUCSL Director General Damitha Kumarasinghe told The Sunday Morning, referring to the CEB’s failure to submit a proposal in February – an omission that limits the scope for any interim tariff adjustment.While President Dissanayake stated during a television programme that electricity tariffs would increase in June, he also assured that post-June rates would still be lower than those in December 2023.&nbsp;He added that the CEB would submit its tariff proposal by 15 May and that the PUCSL was expected to make a decision within two weeks of submission.The President further explained that tariffs had been reduced by 20-30% in January and that the same amounts would not be added back in the upcoming revision.However, PUCSL Director General Kumarasinghe elaborated on the workings of the Bulk Supply Transaction Account (BSTA), through which consumer payments were allocated to generation, transmission, and distribution.&nbsp;If the BSTA balance fluctuates beyond ±15%, the PUCSL can authorise a temporary tariff adjustment of up to 10%. However, he stressed that this mechanism could not replace a full tariff review. Since the February submission was missed, this route is no longer available.Commenting on the CEB’s reported losses, Kumarasinghe noted that while the International Monetary Fund (IMF) expected quarterly profitability, such expectations were not always technically feasible. “Tariffs are based on forecasts influenced by external factors like global oil prices and exchange rate volatility,” he said.He further clarified that Sri Lankan law mandated cost-reflective tariffs over a longer horizon, typically up to two years, rather than quarter-by-quarter profitability.“The Electricity Act clearly states that only ‘efficient costs’ can be passed on to consumers,” he said, adding that inefficiencies – such as unnecessary fuel usage or delays in planned projects – would not be considered in tariff decisions.Kumarasinghe also addressed public concerns over the curtailment of rooftop solar power, confirming that the PUCSL had requested a detailed report from the CEB to assess the losses incurred. Due to the initial report being incomplete, additional data has been requested.He also criticised delays in implementing renewable energy and battery storage infrastructure. “If these projects were part of the 2024 and 2025 generation plans but haven’t been executed, we must question whether these delays are prudent or efficient,” he said.Kumarasinghe also reiterated that the PUCSL’s role was not guaranteeing CEB profitability, but involved ensuring fairness and transparency. “We must strike a balance between protecting consumers and maintaining the utility’s sustainability. Inefficiencies will not be passed on through tariffs,” he added.

Electricity tariffs: Hike unlikely as CEB misses Q2 submission

<ul><li>Ruwanweliseya false alarm</li><li>SriLankan flight incident linked to Indian warning</li><li>Russian Embassy incident under investigation</li></ul> A German national was arrested earlier last week in connection with a mysterious incident involving the handing over of a laptop to a security officer attached to the Russian Embassy in Colombo, triggering concerns about potential security threats.The incident occurred on 28 April, when a foreign woman reportedly handed over a laptop to the embassy officer and fled the scene.&nbsp;A complaint had been filed at the Cinnamon Gardens Police Station, prompting a joint investigation by the Cinnamon Gardens Police and the Colombo South Division Criminal Investigation Bureau.Investigators soon identified the suspect as a German woman.On 4 May, the Magistrate’s Court in Hulftsdorp imposed a travel ban on her, pending further inquiries. Despite the ban, the suspect had attempted to leave Sri Lanka via the Bandaranaike International Airport (BIA) on Wednesday (7).She was intercepted by Airport Police and handed over to the Cinnamon Gardens Police. On Thursday (8), the suspect was produced before the Hulftsdorp Magistrate’s Court No. 1 and released on bail.Acting Police Spokesperson ASP Fredrick Wootler, speaking to The Sunday Morning, said that one of the bail conditions required her to unlock the laptop, with which she had complied.&nbsp;The Police now has the device in its custody and is analysing its contents. So far, no security threat has been identified.ASP Wootler confirmed: “So far we have not identified any security threat. The Cinnamon Gardens Police has taken over investigations and the matter is being looked into thoroughly. Despite her initial hesitation to unlock the laptop, she complied with the court’s bail condition. The contents of the laptop are being scrutinised, but no threat has emerged so far.”Recently a call alerting the Police emergency hotline (119) about a bomb at the Ruwanweliseya proved to be a false alarm, while last week a SriLankan Airlines flight was thoroughly inspected upon arrival at the BIA following an alert from Indian authorities that a suspect in an Indian terror plot was aboard the flight.Minister of Public Security Ananda Wijepala urged the public to remain calm.“We have to investigate everything and we are doing what we can to ensure a safe environment,” he said.“We investigated the Ruwanweliseya bomb threat and discovered that the information was a false flag. Likewise, when the Indian authorities alerted us about a suspected terrorist travelling on a SriLankan Airlines flight, we searched the flight thoroughly and found nothing. Even in the case of the German lady, we are taking every measure to get to the bottom of it.&nbsp;“Information is being gathered and intelligence is being studied. There’s no necessity to spread panic because no threat has been detected so far. I assure you that there’s no threat,” he said.Deputy Minister of Public Security Sunil Watagala added that assumptions of a public threat were premature.“There cannot be an assumption of a public threat because there has been no incident to trigger such alarm. However, considering that these matters can prove to be serious, I am certain the National Security Council (NSC) is paying heed to these factors and will be discussing it at its meetings.”Ministry of Defence Spokesperson Col. Nalin Herath said: “These matters are serious, so it will definitely be taken up at the next NSC meeting.”

Public and national security: NSC to address recent incidents?

Amid concerns over Sri Lanka’s dwindling foreign exchange reserves, the Central Bank of Sri Lanka (CBSL) has clarified that vehicle imports are not directly responsible for the decline.It noted that such transactions were funded through the domestic foreign exchange market rather than through official reserves.As confirmed by Sri Lanka Customs Spokesperson Seevali Arukgoda, the Government had earned Rs. 92 billion in tax revenue as of Friday (9), following the lifting of the import ban on 1 February.Sri Lanka’s Gross Official Reserves (GOR) fell from $ 6,531 million in March to $ 6,326 million in April, reflecting a drop of $ 205 million in a month, bringing forth doubts about whether vehicle imports had contributed to the dip in the reserves.A high-ranking official of the CBSL explained that the country’s GOR fluctuated based on inflows and outflows involving the Government and the Central Bank itself.“In general, there are inflows and outflows to reserves. Inflows include CBSL foreign exchange purchases and loan receipts of the Government, while outflows include loan repayments and foreign exchange sales by the CBSL,” the official said. “Depending on the net inflow or outflow, the GOR will increase or decrease.”With the lifting of the long-standing ban on vehicle imports in 2024, speculation has arisen about a potential strain on the country’s fragile economic recovery. However, the official noted that the CBSL remained committed to building up reserves.“It depends on future flows, but the CBSL will continue its effort for reserves buildup through foreign exchange purchases,” the official added.

Vehicle imports: Rs. 92 b earned in two months

<ul><li>Market value cumulatively estimated at around Rs. 600 m</li></ul>The second phase of the Government vehicle auction seeking to auction 27 luxury vehicles conducted by the Presidential Secretariat is currently underway, with sealed bids scheduled to be opened on Thursday (15), according to Additional Secretary to the President (Transport) Mahesh Hewawitharana.The Sunday Morning estimates that the current market value of these vehicles can be cumulatively valued at around Rs. 600 million.Speaking to The Sunday Morning, Hewawitharana confirmed that the vehicles would be awarded to the highest bidders, in line with standard Government tender procedures.“These are Government-imported vehicles and although they were brand new at the time of acquisition, most are now over 10 years old,” he explained.“Some were manufactured before 2006 and several are no longer in running condition,” he added.Despite their age, the vehicles are largely high-end models, with engine capacities exceeding 1,800 cc for petrol and 2,300 cc for diesel.&nbsp;“They are primarily luxury vehicles,” Hewawitharana noted.&nbsp;These vehicles are available for inspection at the Salusala premises on Jawatte Road in Colombo 5 until Wednesday (14) and tender documents can be obtained from the Finance Division at the Presidential Secretariat (Sema Building, second floor) between 9 a.m. and 3 p.m. on working days, also until Wednesday.While each vehicle has been assigned a market value, those figures remain confidential and will only be revealed when the sealed bids are opened.“Valuations were carried out by a committee comprising officials from the Government Valuation Department, along with accountants, engineers, and subject matter experts,” he said. “They assessed the vehicles based on their physical condition, usage history, and comparisons with similar models in the current market.”When asked about the total revenue expected from the auction, Hewawitharana said it was difficult to estimate due to the wide range in vehicle conditions and types. “Given the age and status of the vehicles, we cannot provide an exact forecast,” he noted.

Govt. vehicle auction: Sealed bids to be opened on Thursday

Following the crash of a Sri Lanka Air Force (SLAF) helicopter on Friday (9), decisions on the airworthiness of the fleet are to be made following the findings of the investigations.However, the defence authorities have not observed reasons for concern so far.Speaking to The Sunday Morning yesterday (10), Deputy Minister of Defence Major General (Retd) Aruna Jayasekara said that the crash did not raise concerns about the airworthiness of the current SLAF fleet.“There are no issues with the current fleet. Investigations are ongoing, which will prove whether it was a technical error or some other error that caused the crash,” he added.A nine-member committee appointed by Air Force Commander Air Marshal Vasu Bandu Edirisinghe has been appointed to probe the crash of the Bell 212 helicopter into the Maduru Oya Reservoir.Despite all 12 personnel on board being rescued, six succumbed to their injuries upon admission to hospital.&nbsp;The deceased included two SLAF members and two Special Forces personnel.While efforts are ongoing to recover the submerged aircraft, SLAF Spokesperson Group Captain Eranda Geeganage told The Sunday Morning that the crashed aircraft was in good condition.“The helicopter was an in-condition aircraft, so there are no decisions to ground the fleet. If something comes up during the investigations, further decisions will be taken,” he said yesterday (10).Decisions regarding the fleet would be made with the Ministry of Defence if the investigations revealed such a requirement, he added.Reports claimed that the aircraft had met with a technical malfunction after taking off for a heli-rappelling demonstration at a passing-out ceremony at the Maduru Oya Army Training School. This had prompted the pilots to initiate an emergency landing.&nbsp;The helicopter subsequently crashed into the Maduru Oya Reservoir at approximately 8.17 a.m.The Bell 212 was a helicopter extensively used during the Vietnam War. The aircraft was inducted into the Sri Lanka Air Force in 1984.When asked about the readiness of the SLAF fleet in light of the emerging tensions in the South Asian region, the SLAF Spokesperson said that no special instructions had been received in this regard, adding that they maintained a neutral stance based on Sri Lanka’s non-aligned position.&nbsp;

Bell 212 helicopter crash: No concerns over SLAF fleet airworthiness

Dr. Tilak Siyambalapitiya has officially resigned from his post as Chairman of the Ceylon Electricity Board (CEB), concluding his tenure that began on 26 September 2024.&nbsp;The resignation took effect on Friday (9), with senior staff bidding him farewell.&nbsp;When contacted by The Sunday Morning, Dr. Siyambalapitiya confirmed his resignation.“I have resigned at the end of the period agreed upon when I accepted the position at the President’s request. I have many family commitments. There are very capable professionals already in the CEB who will continue the work,” he added.Meanwhile, the Energy Ministry Secretary, who is currently in Bhutan, said he was unaware of the resignation details.

Dr. Siyambalapitiya resigns as CEB Chairman

Audit reports for 2024 are to be issued by June, The Sunday Morning learns, with many still pending or being audited at the National Audit Office (NAO).The deadline for the NAO to issue the reports is set in May, with the relevant authorities set to send in their reports to the office for auditing within the first two months of the year.Acting Auditor General Dharmapala Gammanpila stated that there was a three-month delay when taking the process of auditing into account, assuring that reports would be issued by the time June rolled around.“We have always had issues with staff; usually when we take in say 500 for a year, we have to let go of 100 due to their resigning to seek job opportunities elsewhere,” he said.However, he said that the auditing process for a large number of reports was currently underway, with the staff split between districts and institutions.Gammanpila added: “We are conducting our activities as needed. Our progress will be seen after 31 May.”It was further noted that the Auditor General had issued a considerably lower number of reports in 2024 in relation to previous years.“Reports that have been audited are sent to Parliament to be tabled. We publish the reports only after that,” Gammanpila explained, pinning the lack of reports on Parliament not having approved the audits yet.The reports for 2023 have all been audited, prepared, and sent to Parliament as relevant procedure, with the office awaiting confirmation to publish them.To date, no more than 14 reports have been issued in 2024.

2024 National Audit reports due by June

India and Pakistan have agreed to a ceasefire, Indian Foreign Secretary Vikram Misri said yesterday evening (10), while addressing a press briefing on Operation Sindoor by the Ministry of External Affairs.“The Director General of Military Operations (DGMO) of Pakistan called the DGMO of India at 1535 hours earlier this afternoon and it was agreed between them that both sides would stop all firing and military action on land, in the air, and sea, with effect from 1700 hours IST today. Instructions have been given on both sides to give effect to this understanding. The DGMOs will talk again on 12 May at 1200 hours,” Misri said.Meanwhile, Indian External Affairs Minister Dr. S. Jaishankar said: “India and Pakistan have today (10) worked out an understanding on stoppage of firing and military action. India has consistently maintained a firm and uncompromising stance against terrorism in all its forms and manifestations. It will continue to do so.”However, in a statement made yesterday morning, Misri denied Pakistani claims that Indian missiles had struck Afghanistan, calling the allegations “totally frivolous” and a continuation of misinformation spread by Pakistani State agencies.In a special media briefing in New Delhi, Misri vehemently rejected the claims and stated that such accusations were part of a larger pattern of lies, misinformation, and propaganda.“Afghan people don’t need to be reminded about which country has, on multiple occasions in the last year and a half, targeted civilian populations and infrastructure in Afghanistan,” Misri remarked.He pointed out that Pakistan’s claims regarding the destruction of several Indian military installations, including Air Force stations in Sirsa and Surat, as well as the S-400 base at Adampur, were entirely false.Misri urged media outlets and the public to refrain from believing these false narratives.He stated that the Pakistani claims about attacks on critical Indian infrastructure, including power systems and cyber networks, were fabricated. “This tissue of lies is being peddled by the Pakistani State for obvious purposes,” he added.In the same briefing, Misri also accused Pakistan of targeting civilians and civilian infrastructure in Indian states, particularly in Jammu and Kashmir and Punjab.&nbsp;He highlighted a recent incident where Pakistan shelled the town of Rajouri, resulting in the death of Additional District Development Commissioner Raj Kumar Thapa.&nbsp;Misri condemned these actions, which he described as part of Pakistan’s “execrable and wanton campaign”.He also addressed Pakistan’s attempts to sow discord among Indian communities. He pointed out that Pakistani officials had made baseless claims about India firing missiles towards the Amritsar Temple and emphasised that such efforts to divide India were destined to fail.Furthermore, the Foreign Secretary criticised the Pakistani Army Spokesman for taking pleasure in seeing Indian citizens criticise their own Government. “This is the hallmark of an open and functioning democracy,” Misri asserted, contrasting it with Pakistan’s authoritarian regime, which he claimed lacked the same freedoms.&nbsp;US President Donald Trump announced yesterday (10) that India and Pakistan had agreed to a “full and immediate ceasefire” after a period of escalating strikes and counter-strikes between the two countries’ military installations.&nbsp;“After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a full and immediate ceasefire,” Trump stated in a post on social media.However, social media posts last night noted blasts being reported from Srinagar.&nbsp;

300 MW Kerawalapitiya LNG Plant: Cabinet misled on LNG deal?

Electricity tariffs: Hike unlikely as CEB misses Q2 submission

Electricity tariffs: Hike unli ...

Public and national security: NSC to address recent incidents?

Public and national security: ...

Vehicle imports: Rs. 92 b earned in two months

Vehicle imports: Rs. 92 b earn ...

Govt. vehicle auction: Sealed bids to be opened on Thursday

Govt. vehicle auction: Sealed ...

Bell 212 helicopter crash: No concerns over SLAF fleet airworthiness

Bell 212 helicopter crash: No ...

Dr. Siyambalapitiya resigns as CEB Chairman

Dr. Siyambalapitiya resigns as ...

2024 National Audit reports due by June

2024 National Audit reports du ...

Operation Sindoor: India and Pakistan agree to ceasefire

Operation Sindoor: India and P ...

Electricity tariffs: Hike unlikely as CEB misses Q2 submission

Electricity tariffs: Hike unli ...

Public and national security: NSC to address recent incidents?

Public and national security: ...

Vehicle imports: Rs. 92 b earned in two months

Vehicle imports: Rs. 92 b earn ...

Govt. vehicle auction: Sealed bids to be opened on Thursday

Govt. vehicle auction: Sealed ...

Bell 212 helicopter crash: No concerns over SLAF fleet airworthiness

Bell 212 helicopter crash: No ...

Dr. Siyambalapitiya resigns as CEB Chairman

Dr. Siyambalapitiya resigns as ...

2024 National Audit reports due by June

2024 National Audit reports du ...

Operation Sindoor: India and Pakistan agree to ceasefire

Operation Sindoor: India and P ...

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Electricity tariffs: Hike unlikely as CEB misses Q2 submission

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Vehicle imports: Rs. 92 b earned in two months

Vehicle imports: Rs. 92 b earn ...

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Bell 212 helicopter crash: No concerns over SLAF fleet airworthiness

Bell 212 helicopter crash: No ...

Dr. Siyambalapitiya resigns as CEB Chairman

Dr. Siyambalapitiya resigns as ...