The Public Utilities Commission of Sri Lanka has decided not to pass additional costs arising from coal-related issues onto electricity consumers during tariff revisions. The Commission noted that only reasonable costs related to electricity generation, transmission and distribution will be considered in tariff proposals. It stated that similar additional or unjustified costs were not approved in previous tariff revisions. The Commission unanimously decided that such costs will not be included in future electricity tariff adjustments.

Coal-related costs will not be passed to electricity consumers – PUCSL

The Department of Meteorology Sri Lanka stated that showers or thundershowers are expected in several provinces after 1.00 p.m. today (12). Fairly heavy rainfall of around 75 mm is likely in parts of Western, Sabaragamuwa and Southern provinces, and in Kandy and Nuwara Eliya districts. Showers may also occur in some areas in the morning, particularly in the Southern Province and parts of the Eastern region. Misty conditions are expected in parts of Central, Sabaragamuwa and Uva provinces during early hours. The public is advised to take precautions against lightning and strong winds.

Fairly heavy rainfall expected in several areas

<ul><li>153 against, 49 in favour</li><li>Govt. announces PCoI</li></ul> The No-Confidence Motion (NCM) against Energy Minister Kumara Jayakody, linked to the substandard coal import controversy, was defeated by a majority of 104 votes on Friday (10).A total of 153 MPs voted against the motion, while 49 Opposition members voted in favour when the division was held on Friday evening following the debate.The motion was spearheaded by the Opposition, led by the Samagi Jana Balawegaya (SJB), and was formally handed over to the Speaker on 19 March.The Opposition’s case against Minister Jayakody centred on two primary issues: alleged irregularities in coal procurement for the Lakvijaya Power Plant in Norochcholai and a criminal case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).During the debate, the Government stated that a Presidential Commission of Inquiry (PCoI), headed by a Supreme Court justice, would be appointed to investigate the entire coal procurement process since 2009. The announcement was made by Leader of the House Bimal Rathnayake.The debate was opened in Parliament by SJB MP Ajith P. Perera, who cited alleged irregularities in coal procurement and charges filed against the Minister before the Colombo High Court.Presenting the motion, Perera alleged that Jayakody had violated public trust and failed to fulfil his constitutional duties, particularly in ensuring the procurement of adequate and quality coal for the Lakvijaya Power Plant. He argued that this amounted to a serious neglect of responsibility in managing a critical national asset.“The Auditor General’s report has confirmed that the coal is substandard, the tender procedure is flawed, and the selected methodology is wrong,” Perera charged.He further claimed that despite the issue being raised in Parliament, the Minister had failed to respond adequately, pointing to what he described as “a lack of sensitivity and accountability”.Highlighting the scale of losses, Perera told Parliament: “They said nine coal shipments arrived, all nine were substandard. The losses are estimated between Rs. 8.4 billion and Rs. 9 billion. At the time, they admitted there was a loss, but said there was no fraud. That position has now been contradicted by the Auditor General.”The motion also refers to indictments filed before the Colombo High Court under the Bribery Act over alleged procurement-related corruption during Jayakody’s tenure at the Lanka Fertilizer Company. Perera maintained that these charges formed a key basis for seeking the Minister’s removal.“A person facing corruption charges has no place in the Cabinet,” he said, referring to the High Court case (HC 481/2026).He also questioned the suitability of the selected coal supplier, alleging that it had a “questionable track record” and had previously been blacklisted.Citing findings by the Public Utilities Commission of Sri Lanka (PUCSL), Perera said the regulator had outlined “potential financial losses, environmental damage, and a clear failure of ministerial responsibility,” adding that the Minister had failed to challenge those findings.He further revealed that the Chairman of the State-owned coal company had resigned citing irregularities in the tender process. “He clearly stated he could not bear future legal responsibility over this tender process,” Perera added.Responding on behalf of the Government, Chief Government Whip Dr. Nalinda Jayatissa said a fully empowered inquiry committee would be appointed to investigate all coal shipments imported to Sri Lanka to date, with legal action to follow based on its findings.He noted that a total of 462 coal shipments had been imported so far and that the Government would examine any shortcomings in the procurement process, while also alleging that irregularities had taken place under previous administrations.He stressed that coal procurement had been ongoing for over 15 years and had not been initiated by the present administration. “For years, there was no proper tender process. Contracts were awarded through Cabinet decisions midway through procurement processes,” he said.Rejecting allegations of interference, he added: “If anyone claims that a company was brought in through ministerial influence, I challenge them to prove it.”Addressing concerns over coal quality, Jayatissa said: “There is a clear issue when the load port report shows higher calorific value, while the discharge report shows lower. We are investigating this.”“We have taken steps to impose fines amounting to $ 17 million due to deviations in specifications. We will recover the losses,” he added.He assured that the financial burden would not be passed on to the public, adding that uninterrupted electricity supply would be maintained.&nbsp;Sarvajana Balaya MP Dilith Jayaweera described the transaction as the “largest fraud in the long history of Sri Lanka,” citing the Auditor General’s findings.&nbsp;He said the motion was intended to expose what he called the Government’s “cloak of anti-corruption” and urged the CIABOC and the Attorney General to take immediate legal action against those responsible.&nbsp;Prime Minister Harini Amarasuriya rejected the Opposition’s claims, asserting that the Government was more committed to uncovering wrongdoing than its critics.&nbsp;“If corruption is proven, we will not hesitate to act,” she said, adding that the Government was duty-bound to reform what she described as a “corrupt system” inherited from previous administrations.&nbsp;The Prime Minister noted that investigations were already underway through the Committee on Public Enterprises (COPE) and the audit process, with action to follow based on their findings.&nbsp;Meanwhile, SJB MP and Committee on Public Finance (COPF) Chairman Dr. Harsha de Silva said financial losses from inferior coal shipments had significantly contributed to the proposed electricity tariff increase.He revealed that the Ceylon Electricity Board (CEB) had incurred a loss of Rs. 19 billion due to reduced coal power generation.&nbsp;Expected generation of 1,381 GWh had dropped to approximately 1,131.59 GWh, creating a shortfall of 250 GWh. To compensate, the CEB had turned to diesel power, which costs around Rs. 95 per unit compared to Rs. 20 per unit for coal.Dr. de Silva said the Rs. 19 billion loss accounted for 57% of the CEB’s proposed Rs. 33 billion tariff increase.He added that even the International Monetary Fund (IMF) had acknowledged the impact of coal import issues on CEB finances, noting that cost recovery was a key condition for releasing a $ 700 million instalment.Minister Jayakody, addressing Parliament, rejected all allegations and defended the Government’s record. “If it can be proven that we have stolen even a single rupee of public funds, we are prepared to give up not just our positions, but anything requested,” he said.He insisted that reforms had already been introduced to halt irregular procurement practices, including spot tenders.&nbsp;He described the allegations against him as politically motivated retaliation by those whose interests had been affected by recent reforms. “They are trying to weaken the NPP by targeting individual ministers, but we are a movement that cannot be shaken by these false noises,” he said.Outside Parliament, protests demanding the Minister’s resignation were held near Polduwa Junction in the morning, causing heavy traffic congestion as demonstrators blocked access roads.Opposition MPs, including Sajith Premadasa, Ranjith Madduma Bandara, Harsha de Silva, and Mujibur Rahman, were present at the protest.&nbsp;Demonstrators alleged that the substandard coal issue had resulted in billions of rupees in losses and called for immediate action against those responsible.

Coal crisis: Energy Minister survives NCM

The Iranian Navy replenishment ship IRIS Bushehr, which was anchored off the Sri Lankan west coast following the vessel’s crew being interned in Sri Lanka, has finally commenced its journey to Trincomalee under tow, The Sunday Morning reliably learns.Highly-placed Government sources close to the matter told The Sunday Morning on terms of anonymity that the Bushehr had commenced its journey to the Trincomalee Bay under tow of a private salvage tug which had been contracted for the task.&nbsp;“The vessel towing started on Friday (10) and is slowly progressing. There were some technical difficulties and procedural issues which needed to be ironed out before the task was commenced and that’s why it took so long to begin. However, things are now underway,” a senior official close to the matter said.The Bushehr, a 3,300-tonne, 108-metre-long West German-built replenishment vessel sought urgent refuge at the Port of Colombo on the night of 4 March, following the sinking of the light frigate IRIS Dena by a United States Navy submarine off the territorial waters south of Sri Lanka.Over 200 Iranian crew members and naval cadets who were aboard the vessel were brought ashore and interned in Sri Lankan military installations in March. Sri Lanka cited principles of neutrality, international law, and the desire to save lives at sea when it took in the Iranian crew.

Towing of IRIS Bushehr begins

<ul><li>No burden on public, Treasury to cover the gap</li><li>CPC retains cost-reflective pricing</li></ul>﻿Financial losses incurred by the State-owned fuel sector due to global crude oil price volatility will not be transferred to the public through future fuel price adjustments, according to the Treasury, with authorities maintaining that the intervention is fully contained within the approved fiscal framework.Treasury Deputy Secretary Ananda Kithsiri Seneviratne outlined the composition of the overall relief package, noting that a total of Rs. 60 billion had been allocated for fuel subsidies under the Rs. 100 billion national relief packages.“The remaining Rs. 40 billion is distributed across multiple sectors, including approximately Rs. 8 billion for consumer relief, around Rs. 15 billion for electricity subsidies, and allocations for agriculture and fisheries. The agriculture component ensures the distribution of fertiliser through 10,200 packages for the Yala season, while additional support has also been extended to the fisheries sector,” Seneviratne explained.&nbsp;Addressing concerns that the State-owned fuel sector may be reverting to an unsustainable subsidy model, Ceylon Petroleum Corporation (CPC) Managing Director Dr. Mayura Neththikumarage clarified that the cost-reflective pricing mechanism remained fully operational.&nbsp;“There is no situation where the CPC has moved away from the cost-reflective pricing mechanism. The CPC continues to operate under the same pricing formula. For example, if the actual cost of a litre of fuel is Rs. 500, the Treasury may instruct us to retail it at Rs. 400, while reimbursing the Rs. 100 difference directly to the CPC,” Dr. Neththikumarage said.&nbsp;He further noted that the subsidy mechanism was uniformly applied across all fuel distributors, ensuring a level playing field within the domestic market.&nbsp;“It is not only the CPC. Lanka IOC, RM Parks, and Sinopec too are covered under this framework. The Government has instructed all distributors to sell at the controlled price, with the Treasury reimbursing the difference. Therefore, it is the Government providing the relief, not the companies operating at a loss,” he added.&nbsp;The subsidy currently applies exclusively to octane 92 petrol and standard auto diesel, which together account for approximately 95% of domestic fuel consumption. Premium fuel categories, including octane 95 petrol and super diesel, remain priced at full cost-recovery levels.&nbsp;Seneviratne indicated that the continuation of the subsidy would depend on global oil price trends, with the Treasury expected to reassess the scheme once the initial Rs. 60 billion allocation was exhausted.He reiterated that the subsidy programme did not require future recovery from the public, as it was already incorporated into the National Budget.

Govt. to shoulder fuel subsidy

The Public Utilities Commission of Sri Lanka (PUCSL) is not considering an electricity tariff increase to offset losses stemming from the recent coal procurement crisis, The Sunday Morning learns.A senior PUCSL official, speaking on condition of anonymity, said that the regulator would not entertain tariff revisions linked to the procurement failures.“If the coal is of low quality, the loss must be borne by the responsible parties, including the supplier. We will not pass it on to the public,” the official said, adding that this stance would remain consistent in future reviews.The official also refuted claims by the Ministry of Energy that the relevant electricity companies had sought a 15% quarterly tariff hike.“The Ceylon Electricity Board (CEB) has not submitted a proposal with a specific increase. It has only provided revised cost data. We have already completed the quarterly review and will not consider another until the third quarter. It is expected to submit data by mid-May, and until then, there is no basis to consider any increase,” the official noted.In contrast, Ministry of Energy Secretary Prof. Udayanga Hemapala indicated that the sector may still face financial strain due to the losses, though immediate recovery through tariffs was unlikely.“The company cannot operate without funds. Losses must be recovered, but not immediately, as that takes time,” Prof. Hemapala said.“The Lanka Coal Company (LCC) is assessing whether losses can be recovered through penalties. If most of it is recovered, the issue may be mitigated. However, this cannot be confirmed at present, as the process is ongoing. We have requested a full report after the shipment season concludes,” he said.Prof. Hemapala acknowledged that an Auditor General’s report had estimated losses at Rs. 2.24 billion due to procurement issues. However, broader system impacts could be significantly higher. Internal estimates suggest that substituting lost coal generation with diesel-based power could cost around Rs. 25 billion, while projections from the National System Operator (NSO) indicate an additional Rs. 42 billion burden for the quarter.“These figures are not final yet. A committee has been appointed to verify the calculations and we expect a report by end-April. Only then can we determine the total loss and the extent of recoveries,” Prof. Hemapala said.He further said that a critical 40-day gap in coal shipments between November and December had contributed to the crisis, forcing reliance on costly emergency procurement.“There were initial plans to proceed with spot tenders, but this was cancelled by the Minister in favour of term tenders. Due to procedural constraints, the required shipments could not be secured under the term tender process, leading to the delay,” he explained.Addressing allegations involving supplier Trident Chemphar Ltd., Prof. Hemapala said the ministry had initiated a verification process regarding testing standards. Concerns had been raised over the use of the Indonesian laboratory PT Mitra SK Analisa Testama Samarinda, with questions surrounding its accreditation status.“According to the LCC, the primary laboratory is accredited. However, certain testing components were conducted at another facility where accreditation had lapsed. We have instructed the CEB to verify this through the relevant accreditation body to determine the validity of the test reports,” he said.Despite the operational and financial strain, Prof. Hemapala maintained that the Government remained committed to the least-cost procurement principle.“Our objective is always to procure at the lowest possible cost. While there may be procedural challenges, the overall policy direction remains unchanged. Ultimately, we aim to ensure cost efficiency in electricity generation,” he added.&nbsp;

Coal crisis: PUCSL opposed to tariff hike?

<ul><li>No disruptions during Avurudu: NWSDB</li></ul> The National Water Supply and Drainage Board (NWSDB) is set to hold a critical review on 15 April to determine whether water restrictions will need to be re-imposed in several areas following the Sinhala and Tamil New Year.&nbsp;NWSDB Chairman Chandana Bandara told The Sunday Morning that while water cuts had been temporarily lifted to accommodate the festive season, the longer-term supply situation would depend heavily on rainfall.&nbsp;“We will have to conduct a review again after 15 April to see if we need to go back to some restrictions,” he said, noting that the decision would hinge on whether the country received adequate rainfall by that date.&nbsp;Bandara explained that a water management plan had been implemented from 2 April, involving 12-hour water cuts across five zones. The measures were introduced due to a sharp drop in water levels at the Labugama and Kalatuwawa Reservoirs, caused by a prolonged dry spell and increased demand amid high temperatures.&nbsp;However, the NWSDB has temporarily restored normal supply for the festive period.&nbsp;“We started water cuts on 2 April. For four days, 11–14 April, we will provide water completely without any restrictions because it is the festive season,” Bandara said.&nbsp;He added that production at the Labugama and Kalatuwawa treatment plants would increase to normal levels during this period.&nbsp;The restrictions primarily affected areas supplied by the Labugama and Kalatuwawa systems, including Hanwella, Padukka, Homagama, Godagama, Meegoda, Magammana, Piliyandala, Kesbewa, and Pannipitiya.&nbsp;In contrast, most parts of the city of Colombo remained largely unaffected, as around 80% of its water supply is sourced from the Ambatale treatment plant, which draws from the Kelani River.&nbsp;“There was no effect on Ambatale because the Kelani River has enough water,” Bandara noted. He added that the remaining 20% of supply, which depends on the declining reservoir levels, was where the management plan had been implemented.&nbsp;“Between the 2019 Easter Sunday attacks, the Covid-19 issue, and the 2022 economic crisis, funding for our projects stopped completely. In the last five years, not even one cubic metre of water has been added to our system. The levels at Ambatale, Labugama, and Kalatuwawa have stayed the same for 10 years.”To address the recurring shortages, the NWSDB is planning several long-term projects. These include a new 500,000 cubic metre per day treatment plant at Ambatale, expected to be tendered by May, and a 72,000 cubic metre per day project at Kalu Ganga, also slated to commence in 2026.&nbsp;While these projects are expected to strengthen supply capacity by 2028 or 2029, Bandara stressed that the immediate priority was managing existing resources.&nbsp;He urged the public to minimise water wastage, particularly in schools and public institutions, in order to help sustain supply during the ongoing dry period.&nbsp;Earlier this month, the NWSDB appointed a special operations committee to monitor and manage the ongoing drinking water shortage, amid rapidly depleting sources caused by prevailing dry weather and diminished production capacity.&nbsp;The committee, comprising relevant officials, has been tasked with overseeing water distribution and ensuring the effective management of limited resources.The NWSDB said that the committee would continuously monitor existing water sources, production capacity, and supply patterns. It added that daily and weekly reviews would be conducted within set timeframes to assess conditions and respond to emerging issues.&nbsp;Meanwhile, the Department of Meteorology has warned that a possible El Niño event during the upcoming southwest monsoon could prolong drought conditions in Sri Lanka until September.&nbsp;Meteorology Department Additional Director General Ajith Wijemanna stated that below-average rainfall was likely during June, July, and August if El Niño developed, heightening the risk of extended dry conditions.“Owing to this situation, comprehensive water management measures must be implemented across all sectors, particularly for drinking water and irrigation systems,” he said.Wijemanna also noted that high temperatures were expected to persist throughout April, with only gradual relief in the following weeks. While the southwest monsoon is forecast to begin within the next few weeks, he said that the severe conditions at present were likely to ease significantly only after the third week of May.

Utilities: Decision on water cuts on 15 April

<ul><li>Multinational GSF to be made up of 5,500 personnel&nbsp;</li></ul> The Government is currently evaluating prospects of contributing to an United Nations (UN)-backed multinational mission in the Caribbean island nation of Haiti, according to the Ministry of Defence.&nbsp;Responding to a question by The Sunday Morning, Deputy Minister of Defence Maj. Gen. (Retd) Aruna Jayasekara said that Sri Lanka was currently in discussions regarding the possibility of dispatching a contingent of Sri Lankan blue helmets to join the ongoing UN-backed Gang Suppression Force (GSF) to combat gang violence in the troubled nation in line with UN Resolution 2793.&nbsp;“We are considering a prospective mission in Haiti and there is a discussion regarding the matter, which is ongoing. We have sought advice and clarification regarding the proposed mission parameters,” Jayasekara said.&nbsp;While no decision has been made regarding the GSF mission yet, Sri Lanka has been advocating for expanding its contribution to Peacekeeping missions over the last decade.&nbsp;Jayasekara noted that contributing to Peacekeeping missions would benefit the armed forces and help develop Sri Lanka’s standing in the international arena.&nbsp;UN Security Council Resolution 2793 calls for the multinational GSF mission to work in close cooperation with the Haitian Government, in compliance with international law, including international human rights law, as applicable, and the UN’s Human Rights Policy.&nbsp;The mission aims to help the Haitian authorities regain control of the nation, which is in a state of lawlessness and has not held elections for some time. Troops from Chad are reportedly already in Haiti to join the GSF, which is taking over from the previous mission, Multinational Security Support (MSS).&nbsp;According to Resolution 2793, the GSF will be larger than its predecessor with a force structure of nearly 5,500 uniformed personnel – comprising military, police, and civilian personnel – envisaged to make up the structure.&nbsp;MSS forces, a Kenyan-led and US-backed UN mission to Haiti, drew criticism about human rights violations, which have been contested by Kenyan officials. Historically, multiple UN missions to Haiti have drawn such allegations, including one from Sri Lanka in the early 2000s.&nbsp;

SL in discussion for new Peacekeeping mission

<ul><li>Elderly population rises to 18%</li><li>Colombo records lowest fertility</li></ul>Sri Lanka’s Total Fertility Rate (TFR) dropped to 1.3, well below the replacement level of 2.1, according to the final report of the 15th Census of Population and Housing, signalling a deepening demographic shift towards an ageing society.&nbsp;The report was officially launched on Friday (10) at a media briefing by the Department of Census and Statistics (DCS), in collaboration with the United Nations Population Fund (UNFPA).The DCS released the report, marking the completion of the country’s most technologically advanced population count to date. For the first time, the census was conducted as a fully digital operation, using smartphones and tablets to collect data from more than 21.7 million people.The latest figures confirmed a sustained decline in fertility, continuing a downward trend from 3.3 in 1981 and 2.4 in 2012.Colombo recorded the lowest TFR in Sri Lanka at 1.0, significantly below the national average of 1.3. According to the report, a combination of the country’s highest female age at marriage, higher levels of education, and an employment-focused urban environment were the primary drivers of Colombo’s low fertility rate.The estate rural sector recorded a TFR of 1.6 and a Total Marital Fertility Rate (TMFR) of 3.2 – both the highest among all residential sectors. This was attributed to earlier entry into marriage, lower levels of educational attainment, and cultural norms within predominant ethnic groups that favoured larger family structures.While overall fertility remained low, the report indicated that childbearing in Sri Lanka continued largely within marriage. The TMFR stood at 2.7, suggesting that married women, on average, had more children than the national rate.At the same time, broader social trends appeared to have influenced overall fertility. While 33.3% of ever-married women had given birth to two children, around 10.6% had not had a live birth.The data also highlighted clear regional and ethnic variations. Sri Lanka Moor women recorded the highest fertility rate at 2.0, followed by women in the estate rural sector at 1.6. In contrast, Sinhalese women recorded the lowest rate at 1.2.Sri Lanka’s total population stood at 21,781,800, with 28.1% residing in the Western Province. The report pointed to a significant shift in the country’s age structure, with those aged 60 and above accounting for 18% of the population.&nbsp;Meanwhile, the proportion of children aged 0–4 had more than halved since 1946, falling to 5.6%. This shift was expected to increase the old-age dependency burden on the working population.&nbsp;Labour force participation stood at 47.3%, though a notable gender disparity remained. More than half of economically inactive females were engaged in domestic and caregiving responsibilities, while over 40% of inactive males remained outside the workforce due to education or training.&nbsp;In a major social milestone, the national literacy rate had reached 97.4%, with the gender gap effectively closing for the first time since 1881. Male literacy stood at 97.9%, while female literacy was recorded at 97%.&nbsp;The report also reflected rapid digital adoption, with computer literacy at 34.7% and digital literacy among those aged five and above reaching 67.6%.Health data showed a growing burden of non-communicable diseases, with 19.2% of the population reporting at least one chronic condition, including hypertension and diabetes. The prevalence was higher among females at 21.8%, compared to 16.4% among males.&nbsp;The census further highlighted changes in household technology and lifestyle. While the use of radios and fixed-line telephones continued to decline, 93.8% of households used mobile phones, and nearly 20% reported using laptops. Motorcycles and scooters had emerged as the most common form of private transport nationwide.&nbsp;The report was first presented on Monday (6) at the Presidential Secretariat to President Anura Kumara Dissanayake by DCS Director General K.M.D.S.D. Karunaratne.Karunaratne stated that extensive measures had been taken to ensure data accuracy. “The census was conducted in a manner that ensured that not a single person would be overlooked or missed, nor would there be any double counting,” she said.She added that the data had been reviewed multiple times by relevant officials, noting that while no process was entirely free of error, the likelihood of inaccuracies had been minimised.&nbsp;The 15th Census of Population and Housing was conducted in 2024 under the legal authority of the Census Ordinance.

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Fairly heavy rainfall expected in several areas

Fairly heavy rainfall expected ...

Coal crisis: Energy Minister survives NCM

Coal crisis: Energy Minister s ...

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Towing of IRIS Bushehr begins

Towing of IRIS Bushehr begins

Govt. to shoulder fuel subsidy

Govt. to shoulder fuel subsidy

Coal crisis: PUCSL opposed to tariff hike?

Coal crisis: PUCSL opposed to ...

Utilities: Decision on water cuts on 15 April

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