<ul><li>CEB proposes 6.8% hike to PUCSL</li><li>PUCSL to announce details this week</li><li>CEB reports Rs. 5.31 b profit in Q2 2025</li><li>PUCSL approved 15% tariff hike in June</li></ul>Despite ongoing trade union actions and the ongoing restructuring process, the State-run Ceylon Electricity Board (CEB) submitted its proposal for the next tariff revision to the Public Utilities Commission of Sri Lanka (PUCSL) last week, according to highly-placed sources.A senior PUCSL official confirmed receipt of the proposal but would not discuss the details of the CEB’s suggested tariffs. The commission is expected to release the proposal this week.However, a senior CEB official confirmed to The Sunday Morning that the board had requested a 6.8% increase, which has not been approved by the PUCSL yet.The CEB reported a profit of Rs. 5.31 billion for the quarter ending 30 June, a major improvement from the Rs. 18.47 billion losses in the previous quarter. This turnaround is attributed to the electricity tariff revision in June this year.However, the profit still represents an 85% decline compared to Rs. 34.53 billion in the same quarter of 2024. Earlier tariff cuts of around 20% in January 2025 contributed to first-quarter losses. The tariff adjustment aligns with the International Monetary Fund’s (IMF) recommendation to restore cost-reflective electricity pricing for Sri Lanka’s next Extended Fund Facility tranche.The PUCSL stated that the CEB’s first-quarter 2025 loss could not be included in the June–December 2025 tariff calculation. Any deficit or surplus from January–June 2025 will be adjusted in January–June 2026. A surplus of Rs. 51,098 million from the first half of 2024 is sufficient to offset the first-quarter loss, so no financial deficit needs to be accommodated.&nbsp;The PUCSL also rejected a negative revenue adjustment of Rs. 8,283 million queried by the Auditor General. For June–December 2025, the CEB forecasts total electricity sales of 9,329 GWh, generating Rs. 230,714 million, mostly from domestic end-users (8,490 GWh, Rs. 210,673 million) with smaller sales to the Lanka Electricity Company (LECO) (840 GWh, Rs. 20,040 million).The PUCSL approved a 15% increase in electricity tariffs for the second half of 2025, effective from 12 June. The CEB had initially proposed an 18.3% increase, but after public consultations and review, the final revision was set at 15%.&nbsp;Domestic tariffs were raised across all consumption categories, with smaller users (&lt;30 units) seeing an 8% increase in unit price (Rs. 4 to Rs. 4.50) and a Rs. 5 rise in fixed charges. Higher consumption brackets experienced larger unit price increases, while fixed charges largely remained unchanged for most categories. Tariffs for religious, charitable, industrial, hotel, and general-purpose categories were also increased.Attempts made to contact CEB Chairman Prof. Udayanga Hemapala, CEB General Manager Wasantha Edussuriya, and CEB Spokesperson Dhammike Wimalaratne regarding the proposal were futile.&nbsp;

Electricity: Another tariff hike ahead?

<ul><li>India to keep monopoly</li><li>G2G medicine plan faces industry pushback</li><li>Low-volume imports from Pakistan, China, others limited</li><li>Fatal incidents spark quality concerns over Indian meds</li></ul>The Government’s well-publicised plan to diversify Sri Lanka’s medicine imports appears to be in limbo, as months after receiving Cabinet approval, the proposal to source medicines from countries such as Pakistan, China, Indonesia, Turkey, and Bangladesh has yet to move beyond discussion, The Sunday Morning learns.While the Health Ministry insists the initiative is aimed at securing life-saving medicines amid chronic shortages, insiders reveal that India will continue to enjoy a virtual monopoly, commanding nearly 80% of Sri Lanka’s pharmaceutical imports.A special committee was recently appointed to facilitate direct Government-to-Government (G2G) medicine procurement. The move, however, has triggered strong opposition from pharmaceutical industry stakeholders, who accuse the Government of bypassing established procurement mechanisms in favour of opaque deals.Despite the Cabinet’s greenlight, the Health Ministry is still waiting on the National Procurement Commission’s blessing before presenting a final plan.In the meantime, it is also learnt that diplomatic letters have been dispatched to several regional governments, accompanied by a list of around 100 urgently required medicines.&nbsp;Yet, officials quietly admit that imports from these countries will be limited to medicines with no registered suppliers in Sri Lanka — mostly low-volume medicines with minimal commercial interest.In 2023, Sri Lanka faced growing concerns over the quality of Indian-imported medicines after a series of alarming health incidents. Several patients died following the alleged use of the Indian-made anaesthetic bupivacaine, which had been brought into the country under emergency import provisions without full regulatory approval.&nbsp;Around the same time, a batch of Indian-manufactured prednisolone eye drops was allegedly linked to bacterial contamination that left cataract patients with serious vision impairment.In response, the Health Ministry and the National Medicines Regulatory Authority (NMRA) withdrew the medicines and began investigations, while a special Government committee was appointed to review the cases and consider compensation for affected individuals.These incidents also triggered legal challenges against the waivers that allowed unregistered medicines to enter Sri Lanka under India’s credit line.“For the last two to three years, deliveries have been pending due to various issues,” NMRA Chairman Dr. Ananda Wijewickrama told The Sunday Morning. “Every week we meet with the Deputy Minister of Health, Medical Supplies Division (MSD), and State Pharmaceuticals Corporation (SPC) to review delays in registration. The process is now fairly formalised and we expect progress within the next two to three months.”He added that around 80% of Sri Lanka’s medicine supplies still came from India, which had long been the primary source.“We also import from Pakistan and Bangladesh, but for certain medicines, no registered suppliers exist in Sri Lanka. In such cases, we have waived registration fees, but since the required quantities are small, most suppliers are reluctant to apply.”According to Dr. Wijewickrama, these are usually essential medicines imported in limited quantities. “Because volumes are low, suppliers show little interest, but we still encourage registration. We have now begun implementing a new pricing mechanism and issuing approvals accordingly,” he said.

Diversification plan for med imports stalled

<ul><li>Teams sent to Sabaragamuwa, Central, Uva</li><li>Kandy submits 150 accident-reduction proposals</li><li>Ella crash buses unregistered, many more like it</li></ul>The Ministry of Transport and Highways is scrambling to improve road safety in the hill country amid expert warnings that current roadside guide rails and barriers cannot prevent buses from toppling.The move comes after a deadly bus crash in Ella claimed 15 lives, highlighting the pressing need to improve road infrastructure, enforce vehicle regulations, and enhance traffic safety measures.&nbsp;The bus, which toppled off a cliffside near Ella, had been recently withdrawn from proper inspection after it had been unregistered for trans-district travel, it was revealed.Deputy Minister of Transport and Highways Dr. Prasanna Gunasena’s Public Relations Officer Damian Weerakkody said the ministry would consult experts from Australia and Canada to recommend upgrades in high-risk mountainous areas.The Ministry of Transport and Highways has launched an urgent nationwide road safety initiative following alarming statistics showing 1,757 accidents, 1,862 deaths, and thousands of injuries across the country between January and early September this year.According to statistics released by the Police Media Division, between January and 4 September, there have been 1,757 road accidents reported across the country.&nbsp;These incidents have resulted in 1,862 deaths, 3,532 serious injuries, and 6,444 minor injuries, while 2,721 persons have been recorded as being involved in accidents without injuries.In response to these figures, the Ministry of Transport and Highways has announced that it is prioritising the implementation of the ‘Go Safe – Road Safety Action Plan 2025–2026’ to reduce the number of accidents and improve road safety standards nationwide. The initiative has gained added urgency following the recent accident in Ella.Weerakkody explained that the ministry had already commenced work in several high-risk regions. He stated that teams had visited three provinces identified as being among the most dangerous, namely Sabaragamuwa, Central, and Uva, covering seven key districts. He added that particular attention was being given to areas with mountainous terrain and hazardous road conditions.District transport and road safety committees are being established as part of the programme, comprising the district secretary, Members of Parliament, local authorities, and representatives from transport associations such as three-wheeler and school van operators. Their task is to identify the main causes of accidents and recommend practical, localised solutions.&nbsp;Weerakkody noted that the Kandy District Committee alone had compiled approximately 150 proposals. A workshop is scheduled to be held in Kandy in mid-October to review these proposals.&nbsp;“We will prioritise around 30 of the most urgent proposals and develop an implementation plan with assigned responsibilities, timelines, and budget allocations,” Weerakkody said. He confirmed that funding would come from the ministry as well as from the United Nations Development Programme (UNDP), the Asian Development Bank (ADB), and private sector partners.Weerakkody also highlighted the issue of unregulated private buses operating in the hill country. “The bus involved in the Ella accident was not registered under the National Transport Commission (NTC). Many such buses are not registered for passenger transport and therefore fall outside the jurisdiction of the NTC,” he said.As a result, there is no official data on their numbers or their mechanical condition, including brake safety. He stressed that future regulations must ensure all such vehicles undergo technical inspections before being allowed to operate in high-risk areas. The revelation points to significant gaps in legislation and accountability.In addition to infrastructure and vehicle regulation, the ministry has introduced new seatbelt requirements for buses. From 1 July, all drivers were required to wear seatbelts on all roads. From 1 August, rear-seat passengers were required to wear seatbelts on expressways, and from 1 September, the rule was extended to all passengers on expressways.Weerakkody acknowledged that compliance remained a challenge, as many buses had not been fitted with passenger seatbelts yet. For this reason, a grace period has been introduced during which the Police has been instructed not to issue fines.&nbsp;He also raised concerns about the sharp increase in the price of seat belts, which have risen from Rs. 2,500 to between Rs. 16,000 and 17,000. He confirmed that the ministry planned to meet with importers to establish a fixed and reasonable price.

Road safety: Experts warn barriers won’t stop buses from toppling

<ul><li>Multi-layered taxes make critical components for buses expensive</li><li>Wreckage of bus to be handed over to Govt. Analyst today</li></ul>In the wake of the devastating bus accident in Ella that claimed 15 lives, the Government is exploring a proposal to lower the prices of vehicle spare parts that will be discussed at a strategic meeting on road safety scheduled to be held tomorrow (8).The tragic incident, reportedly caused by a brake failure, has spurred the ministry to consider measures that will make road safety more accessible and affordable for vehicle owners.When contacted by The Sunday Morning, Deputy Minister of Transport and Highways Dr. Prasanna Gunasena’s Public Relations Officer Damian Weerakkody confirmed that the Government was exploring the proposal.The proposal aims to address the serious implications of the Ella accident by ensuring that proper maintenance standards are met, particularly for buses and school vans.&nbsp;By lowering the cost of spare parts, the Government hopes to encourage vehicle owners to replace faulty components and thereby enhance overall road safety.This initiative aligns with the ‘Safer Vehicles’ pillar of the ‘Go Safe – Road Safety Action Plan 2025–2026,’ which proposes measures like mandatory roadworthiness testing for all vehicles.According to Weerakkody, a significant challenge is the prevalence of unregulated private buses and the high cost of safety-related components.Initial investigations into the Ella bus accident suggest a possible mechanical defect, according to the Police. A Department of Motor Traffic expert has examined the wreckage and submitted a report indicating the fault. Further inquiries are ongoing to determine the exact cause.&nbsp;The bus, which went off the Ella-Wellawaya road on Thursday (4) night, has been recovered and will be handed to the Government Analyst for further examination tomorrow (8).The high price of imported spare parts is primarily due to a multi-layered tax structure. This includes a basic Import Duty ranging from 5–10%, a Value-Added Tax (VAT) of 18%, and other applicable levies. These taxes are calculated based on the Cost, Insurance, and Freight (CIF) value of the imported goods, significantly increasing the final price for consumers.

Ella bus tragedy: Government to explore spare part price drop

<ul><li>Want demands met by 15 Sept.</li><li>Say Govt. must fulfil its promises</li></ul>Ceylon Electricity Board (CEB) trade unions yesterday (6) warned that if their demands were not met by 15 September, essential services such as breakdown repairs could be suspended.A group of CEB trade unions recently launched a work-to-rule campaign over ongoing disputes related to the State-Owned Enterprises (SOEs) restructuring process, which has been a long time coming.Currently, the unions say they are minimising the impact on consumers, attending to breakdowns and other critical services, while restricting communications with higher management and skipping district coordination meetings and other official events.CEB Engineers’ Union Executive Committee Member Dhanushka Parakramasinghe explained that the action stemmed from 16 demands, including objections to the alleged unlawful restructuring and calls for proper human resource policies.&nbsp;He stressed that the unions were not seeking salary increases but were pressing for settlement of outstanding payments, including unpaid wage adjustments from two years ago and a medical bonus from 2020.Under the new Electricity Act enforced in August, the CEB was divided into four separate entities: the National System Operator Ltd., the National Transmission Network Service Provider Ltd., Electricity Distribution Lanka Ltd., and Electricity Generation Lanka Ltd. Employees were given the chance to transfer to these companies, but the unions argue that the move fails to guarantee career progression, wage stability, or benefits.Parakramasinghe also noted that the legal prerequisites for transferring employees to the successor companies — such as formal establishment of boards, organisational structures, and defined roles — had not been fully satisfied.“The Government must fulfil the promises made to us,” he said, adding that while consumer services were being maintained for now, breakdown repairs may be halted if a solution was not reached before 15 September.The work-to-rule action began at midnight on Thursday (4) and continues to affect interactions with management, while day-to-day operations are being carried out with minor delays.

SOE reforms: CEB unions threaten to halt repairs

<ul><li>Case before Mediation Board</li><li>Less than 100 tourists arrested for breach of law in 2025: SLTDA&nbsp;</li></ul>The case involving two Israeli nationals accused of attacking a Sri Lankan surfer and his girlfriend in Arugam Bay will resume in court on Tuesday (9).The Sunday Morning was unable to confirm the veracity of claims that the two Israelis had been deported. However, a senior official told The Sunday Morning on condition of anonymity that the accused may have voluntarily left Sri Lanka.&nbsp;The source claimed that deportation would be the final step to be taken after the completion of investigations.&nbsp;An official confirmation on whether the accused are in Sri Lanka was not received as of last evening.When contacted yesterday (6), a delegate of Police Media Spokesperson Assistant Superintendent of Police F.U. Wootler told The Sunday Morning that the courts had directed the case to the Mediation Board and that the case would resume in court on 9 September after the Mediation Board report had been obtained.On 29 August, two Israeli nationals were arrested by the Police in Arugam Bay in connection with an assault on a local surfer and his girlfriend.It was reported that the incident had occurred when the vehicle of the Sri Lankan knocked on a bicycle causing the Israelis to fall in the midst of traffic. A report quoting the Sri Lankan surfer claimed that the Israelis had proceeded to throw a beer can at his girlfriend and physically assaulted him when he got off the vehicle.After being produced before court, the suspects had been released on bail.Meanwhile, amidst local outcry accusing foreigners on tourist visas of running businesses in tourist areas, a 29-year-old Russian national was arrested by the Unawatuna Tourist Police Unit. This arrest is unrelated to the Arugam Bay assault.According to preliminary investigations, the woman had been operating a hotel and a restaurant in the Unawatuna area as a night club, in violation of visa rules.Sri Lanka Tourism Development Authority (SLTDA) Chairman Buddhika Hewawasam said that for 2025, “not many” tourists had been arrested for wrongdoing. “It is not many, less than 100,” he said.According to him, the SLTDA, Tourist Police, and Department of Immigration and Emigration have launched a combined action to ascertain whether tourists are engaged in illegal activity. The arrests that had been made so far were in relation to illegally running businesses, visa issues, and altercations among tourists, the Chairman said.&nbsp;

Law and order: Arugam Bay assault case to resume

<ul><li>Says no plans to evict anyone to develop site</li><li>Plans to improve connectivity, religious tourism</li></ul> The Government will address concerns raised by the Catholic Church and community about the controversial Katchatheevu tourism project, The Sunday Morning learns.This, as the Government has reiterated its commitment to move forward with the project.Speaking to The Sunday Morning, Deputy Minister of Buddhasasana, Religious and Cultural Affairs Gamagedara Dissanayake said that the Government would take steps to address the concerns of the Catholic community regarding the proposed Katchatheevu tourism project.He stressed that the Government would not move forward with any aspect of the initiative that disregarded the religious significance of the island.“The Government will try to iron out the concerns of the Catholic community. A development project that does not complement the religious sanctity of the location is without purpose,” Dissanayake said.“We must and will respect the views of all worshippers. The Government has no intention of forcibly evicting anyone or proceeding with construction that would breach the sanctity of the site.”Dissanayake added that while protests were not unusual in relation to sensitive projects, the Presidential Secretariat was directly overseeing the initiative and had instructed that all reasonable demands made by stakeholders had to be considered during the planning and implementation stages.Ministry of Foreign Affairs Spokesperson Thushara Rodrigo described the initiative as “a policy decision undertaken in the best interest of the nation and its people”. He stressed that no work would begin until all required procedures were completed.Explaining the initiative as a project to uplift and benefit the people of the region, Rodrigo stated that the Katchatheevu project was a forward-thinking, development-oriented endeavour.&nbsp;“It is not merely a tourism development plan, but a comprehensive vision aimed at advancing the immense potential of the northern region for the benefit of all citizens. This project is aimed at improving regional connectivity, enhancing the potential of religious tourism, and advancing the lives of the people in the region,” he said.Commenting on the ongoing feasibility study, Rodrigo stated that a comprehensive technical impact assessment would be conducted before any part of the project began. “The implementation will adhere to all established protocols, including technical, social, and economic assessments, and follow all official procurement procedures to ensure compliance with the rule of law,” he added.The Catholic Church, led by the Jaffna Diocese, had strongly objected to the development proposal, warning that the project could undermine the religious significance of Katchatheevu.&nbsp;Bishop Rt. Rev. Dr. Justin Bernard Gnanapragasam said: “Turning this sacred island into a tourist destination would be an insult to religion. Katchatheevu is a place of worship and pilgrimage, not of entertainment.”The Bishop noted that the island was home to the historic St. Antony’s Shrine, which holds an annual feast attended by thousands of devotees from both Sri Lanka and India. He warned that any development that compromised this tradition would not be acceptable to the Catholic community.Fisheries, Aquatic and Ocean Resources Minister Ramalingam Chandrasekar, speaking in Katchatheevu recently, confirmed that a feasibility study was currently being conducted. He explained that the project included proposals to connect Neduntheevu (Delft) and Katchatheevu as part of a broader effort to boost regional tourism.President Anura Kumara Dissanayake, who also spoke in Katchatheevu recently, reiterated the Government’s stance that while the project aimed to improve economic opportunities, Sri Lanka’s territorial integrity and the religious sanctity of the island would not be compromised.&nbsp;Minister Chandrasekar could not be contacted for further comment.

Katchatheevu tourism project: Government to address community concerns

<ul><li>120 foreign personnel to join Lankan counterparts for ‘Pacific Angel 2025’</li><li>Aims to improve coordination, understanding, and preparedness for HADR</li></ul> Sri Lanka will this week host the multilateral exercise ‘Pacific Angel 2025,’ aimed at improving regional defence cooperation.The exercise, which will commence on Monday (8), will bring together the United States Air Force (USAF), Royal Australian Air Force, Japan Air Self-Defense Force, Indian Air Force, Maldivian National Defence Force, and Bangladesh Air Force as key participants.&nbsp;The three branches of the Sri Lankan armed forces will also take part during this iteration of the exercise.According to the Sri Lanka Air Force (SLAF), in total, 300 personnel are scheduled to participate, of which 123 will represent foreign contingents.“The scale and diversity of the participating forces reflect the growing importance of collaborative training in addressing Search and Rescue (SAR) and Humanitarian Assistance and Disaster Relief (HADR),” the SLAF said.The exercise highlights the enduring US-Sri Lanka partnership while underlining the broader strategic value of multinational military cooperation. By engaging in joint training, participating forces enhance mutual understanding, operational coherence, and shared preparedness – key factors in ensuring regional collective readiness.&nbsp;“A significant feature of the exercise will be its eight Subject Matter Expert Exchanges (SMEEs), which cover critical operational domains. These include Aircraft Maintenance and Aircrew Operations, SAR Open-Water and Helicopter Hoist Operations, Jungle Survival and Tracking, Aeromedical Patient Movement, Mass Casualty Medical Response (MASCAL), a Military Band Resilience Programme, and Airlift Cargo Handling.&nbsp;“The SMEEs will primarily take place at the SLAF Base, Katunayake, while the SLAF Academy, China Bay and the SLAF Regimental Training Centre, Ampara will serve as specialist facilitators. Through these activities, participants will not only refine tactical skills but also foster professional bonds that strengthen interoperability across forces,” the SLAF added.It is learnt that exercise will be supported by a wide array of air and naval platforms. The USAF is expected to deploy two C-130J aircraft, while the SLAF will contribute a Bell 412, a B-212 helicopter, and a King Air 350. Complementing the air assets, the Sri Lanka Navy will field selected naval platforms to support the maritime dimension of the training.&nbsp;

Regional security: 7-nation military exercise this week

<ul><li>85% of paddy in Ampara has been harvested</li></ul>The Paddy Marketing Board (PMB) has announced that over 40,000 MT of paddy have already been purchased under the Government’s procurement programme, with the country expecting a total production of 2 million MT this harvesting season.Speaking to The Sunday Morning, Ministry of Agriculture, Livestock, Land, and Irrigation Secretary D.P. Wickremasinghe reported that approximately 1.6 million MT of paddy had been harvested nationwide as of last week.The highest procurement volume was recorded in the Ampara District, where 85% of the paddy has already been reaped.&nbsp;Wickremasinghe assured that the current stock would be sufficient to meet domestic demand until the next harvesting season.“While some varieties, such as keeri samba, may experience slightly lower stock levels, staple varieties like nadu are available in adequate quantities,” he explained.The board is currently utilising 353 warehouses with a combined storage capacity of 326,710 MT. This includes 216 board-owned warehouses capable of storing 230,560 MT and 137 warehouses belonging to other institutions with a capacity of 96,150 MT.Despite the ample storage facilities, during the Yala season of 2023, only 2,153 MT of paddy was purchased and stored across 15 warehouses, leaving 93% of the board’s storage capacity unused. Furthermore, 146 of these warehouses were identified as needing repairs, but no maintenance work was carried out.Wickremasinghe highlighted that although this year’s harvest had been productive, the board would need to implement new strategies to recover from past financial losses and improve operational efficiency in the future.

Electricity: Another tariff hike ahead?

Diversification plan for med imports stalled

Diversification plan for med i ...

Road safety: Experts warn barriers won’t stop buses from toppling

Road safety: Experts warn barr ...

Ella bus tragedy: Government to explore spare part price drop

Ella bus tragedy: Government t ...

SOE reforms: CEB unions threaten to halt repairs

SOE reforms: CEB unions threat ...

Law and order: Arugam Bay assault case to resume

Law and order: Arugam Bay assa ...

Katchatheevu tourism project: Government to address community concerns

Katchatheevu tourism project: ...

Regional security: 7-nation military exercise this week

Regional security: 7-nation mi ...

Paddy purchasing: PMB buys 4,000 MT of 1.6 m MT harvest

Paddy purchasing: PMB buys 4,0 ...

Diversification plan for med imports stalled

Diversification plan for med i ...

Road safety: Experts warn barriers won’t stop buses from toppling

Road safety: Experts warn barr ...

Ella bus tragedy: Government to explore spare part price drop

Ella bus tragedy: Government t ...

SOE reforms: CEB unions threaten to halt repairs

SOE reforms: CEB unions threat ...

Law and order: Arugam Bay assault case to resume

Law and order: Arugam Bay assa ...

Katchatheevu tourism project: Government to address community concerns

Katchatheevu tourism project: ...

Regional security: 7-nation military exercise this week

Regional security: 7-nation mi ...

Paddy purchasing: PMB buys 4,000 MT of 1.6 m MT harvest

Paddy purchasing: PMB buys 4,0 ...

Bringing the news paper to your fingertips

Diversification plan for med imports stalled

Diversification plan for med i ...

Road safety: Experts warn barriers won’t stop buses from toppling

Road safety: Experts warn barr ...

Bringing the news paper to your fingertips

Ella bus tragedy: Government to explore spare part price drop

Ella bus tragedy: Government t ...

SOE reforms: CEB unions threaten to halt repairs

SOE reforms: CEB unions threat ...

Law and order: Arugam Bay assault case to resume

Law and order: Arugam Bay assa ...

Katchatheevu tourism project: Government to address community concerns

Katchatheevu tourism project: ...