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The government’s attempt to abolish the Public Utilities Commission (PUCSL) came under strong protest from electricians as it will affect the future sustenance of their employment.

The Sri Lanka Association of Electricians’ Association (SLAE) on Saturday (19) revealed the forces that influence the authorities to do away with the Public Utilities Commission.

The secretary to the president has requested for the PUCSL to be abolished, according to Sanjeewa Dhammika, the convenor of the Sri Lanka Electricians’ Association.

He noted that the licence system being implemented by the PUCSL for electricians to operate under the CEB will be cancelled after the abolition of the commission. 

"Today, he has crippled the PUCSL. Does this secretary have a right to do this? Doesn’t the subject minister know about this? There is a mafia within the Ceylon Electricity Board," he claimed.  

The CEB Engineers’ Association is a part of this. These people are engaged in a coordinated effort to cripple this system”, he accused.

During 2019 alone, the PUCSL had enabled the country to save up to Rs.400 billion by halting untimely power purchases and dubious power generation projects, Dhammika revealed.

Meanwhile, the Employees’ Union of the Public Utilities Commission has refuted allegations made by certain quarters that it had delayed the implementation of power generation plans in the country.

According to a recent media release, the CEB has sought approval from the PUCSL for three major power plants with a capacity of 300 MW during the period 2016-2020 under the Long-term low-cost power generation plans.

However, the union claims although approval had been granted to these projects which would largely benefit the general public, the CEB had delayed these projects for many years.

Related News: PUCSL didn't cause a delay in implementing the power generation plan of the president of the employees union

He pointed out that according to the Sri Lanka Electricity Act, the Commission is responsible for approving power generation plans and approving the calling for proposals to build power plants (Request for Proposals) and Power Purchasing Agreements. Accordingly, the Commission has given its fullest cooperation and approval to the Ceylon Electricity Board for implementing the Least Cost Long Term Generation Plans.

He further stated that,

"The Ceylon Electricity Board has sought the approval from the Public Utilities Commission of Sri Lanka for three major power plants with the capacity of 300 MW during the period 2016-2020 under the Least Cost Long Term Generation Plan and the steps taken by the Commission in this regard are as follows;

01. The first liquefied natural gas (LNG) power plant of 300 MW

The Ceylon Electricity Board (CEB) submitted the request for proposal (RFP) of the above plant for the approval of the Commission 15.11.2016 and the approval was granted by the Commission on 17.11.2016 within two days. However, after a delay of four (04) years of the bidding process, the Power Purchasing Agreement (PPA) has been referred to the Commission for approval on 09.10.2020. The Public Utilities Commission of Sri Lanka gave the approval on 25.11.2020 in the first meeting that was convened after submitting the PPA.

02. 300 MW Second Liquefied Natural Gas (LNG) Power Plant

Although the Board of Directors of the Ceylon Electricity Board had decided on 29.06.2017 to call for bids for the construction of the above-mentioned power plant which has been delayed for more than three years and which was approved by the Public Utilities Commission of Sri Lanka under the Long-Term Generation Expansion Plan, the request for proposal (RFP) was submitted to the Commission on 18.09.2020. Accordingly, the Commission has given its approval within one month on 22.10.2020 and yet the Ceylon Electricity Board has not called for bids for the plant.

In both cases mentioned in No 1 and No 2, the approvals were granted after the Ceylon Electricity Board (CEB) agreed to incorporate the necessary amendments proposed by the Commission for the benefit of the country and the public.

03. Norochcholai Coal Power Plant Extension of 300 MW

According to the long-term power generation plan 2018-2037 approved by the Commission, if a 300 MW coal power plant is to be completed by 31/12/22, the approval of the Commission should be obtained by the middle of the year 2018.

However, after a delay of two years, the relevant tender has been submitted on 04.09.2020 to award the construction of this power plant to one party in a non-competitive manner.

In a letter dated 15.10.2020, the Commission requested the Ceylon Electricity Board to comply with the provisions of the Electricity Act  and Procurement rules  and to submit explanations/justifications in purchasing the power plant.

The CEB has submitted a reply letter to the Commission on 27.10.2020. However, as the members of the Commission have not yet been appointed to the PUCSL, it has not been possible to submit it to the Commission to take necessary action regarding the reply letter.

The Commission has also supervised the implementation of generation plans without being limited to approving the generation plans and approving the request for proposals (RFPs) for the same plans.

The Commission has informed the Cabinet, the Ministry of National Policies and Economic Affairs and the Ministry of Power and Renewable Energy in writing that there is a delay in the construction of power plants from 2016.

We look forward to providing information on the amount of money saved for the public by the Commission due to the non-approval of emergency power purchases and about the emergency purchases requests that the Commission received," he added.

State Minister of Fisheries Kanchana Wijesekera has been removed from the post of Chairman of the Matara District Regional Development Committee and National List MP Jayantha Ketagoda has been appointed.

At a discussion held recently at the Temple Trees, Wijesekera was appointed as the Chairman of the Matara District Regional Development Committee by Basil Rajapaksa, the founder of Sri Lanka Podujana Peramuna (SLPP)

Power Minister Dullas Alahapperuma, State Minister Kanchana Wijesekera, parliamentarians Weerasumana Weerasinghe and SLPP General Secretary Sagara Kariyawasam had also participated in the discussion.

However, Basil Rajapaksa had announced last week that Jayantha Ketagoda had been appointed as the Chairman of the Matara District Regional Development Committee as a decision had been taken to assign specific responsibilities to SLPP National List parliamentarians.

Jayantha Ketagoda is considered to be one of Basil Rajapaksa's most loyal confidants. Furthermore, he was tipped to resign from his parliamentary seat and make way for Basil Rajapaksa if the latter had decided to enter parliament, SLPP internal sources said. 

President Gotabaya Rajapaksa had previously appointed his nephew Nipuna Ranawaka as the Chairman of the Matara District Development Committee.

Meanwhile, a group of lawyers representing the victims of the Mahara prison riot had lodged a complaint with Chief Justice Jayantha Jayasuriya and the Attorney General yesterday (17) calling for an inquiry into the statement made by the Coordinating Officer to the Attorney General and State Counsel, Nishara Jayaratne, where she has reportedly stated that cases can't be heard based on the instructions of NGOs.

Former President Chandrika Kumaratunga has released a statement through her official Facebook page urging the government to change the decision to not permit any burial of COVID-19 victims.

She said she did not want to make any statement until she had all the facts related to the burial of COVID-19 victims and she believes that the reasons given justifying the mandatory cremation is baseless after having consulted scientists and researchers in Sri Lanka and overseas.

Former President Kumaratunga further stated that this is a practice Muslims have been following for centuries and there is a legitimate right for Muslim community to follow their religious practice of burying dead, which doesn't harm anyone.

The World Health Organization (WHO) country office for Sri Lanka, with financial support worth EUR 2 million from the European Union (EU), will help improve emergency response capacities in Sri Lanka to mitigate the impact of COVID-19.

The support will focus on several key areas, including enhancing the effectiveness of COVID-19 case management as well as preventing infection.

Developing the system’s case management processes will enable better planning, coordination, and decision-making; additionally, a key component of the grant, the advancement of a learning management system, will sustainably increase the health system’s capacity to respond to public health emergencies in the future.

The funding will also advance existing communication and community engagement efforts, ensuring the generation of relevant and accessible communication materials and supporting the mobilization of vulnerable individuals, young people, and community-based organizations to lead community-level prevention and control measures.

In recognition of the importance of continuing essential services, EU support will also empower communities to access mental health and psychosocial services, addressing inequities exacerbated by the pandemic.

“The funding for Sri Lanka is part of the EU’s global response to the coronavirus pandemic,” said Ambassador of the Delegation of the European Union to Sri Lanka and the Maldives H.E. Denis Chaibi.

"The EU partnership with the WHO will not just address the impact on the health sector but also pay special attention to vulnerable populations, working hand-in-hand with local communities. Strengthening response capacities of countries in the South Asian region is an important part of ensuring that we all recover from this crisis together and ‘build back better," he said.

Dr. Razia Pendse, WHO Representative to Sri Lanka, stated that as cases continue to increase globally and locally, the world is reminded that the pandemic is far from over.

She said that the EU’s timely and strategic support will boost implementation of the Sri Lanka Preparedness and Response Plan to COVID-19, focusing on the pillars of case management, risk communication and community engagement, infection prevention and control, and maintaining essential services.

Dr. Razia Pendse said the expansion of digital technology for capacity strengthening and continuous learning, through the development of the learning management system will go a long way in responding not only to the current COVID-19 pandemic but also to a better prepared and resilient health system for the future

Former Speaker Karu Jayasuriya stated that the parliament has been reduced to a level of a post office after the passage of the 20th Amendment.

Noting that many dictators, autocrats, monarchists and fascists, have from time to time, tried to assert their power by suppressing anti-parliamentary traditions, the former Speaker said that all such attempts throughout history have been defeated through the will and sacrifices made by the public.

He pointed out that the most serious blow and insult to parliament in recent times has been the attempt by external forces to shutdown the Public Utilities Commission, which was created with the blessings of the parliament. "Attempts are being made by the Secretary to the Treasury to abolish it on the instructions of the Secretary to the President. They are also urging the Hon. Members of the Commission to resign. Such attempts are not only arbitrary and anti-democratic, but also an undue interference of the executive on the legislature," he said. The full statement issued by Karu Jayasuriya is found below.

"The National Movement for a Just Society pays attention to the socio-political, cultural and economic issues of this country as we have a national responsibility to focus on such issues. As an organisation, we have no political ambitions to seek power. Therefore, the National Movement for a Just Society will always stand to protect democracy and the rights of the people in this country.

It is with that responsibility in mind that we present these facts to you today.

In modern advanced democracies, the people are represented through the parliament. The parliamentary system is not built on the hegemony of a dictatorship.

This is a result of the relentless struggles carried out by the erudite citizens against the oppressive and authoritarian monarchies. It embodies and represents the aspirations of the people. It also reflects the nature of the state built on the aspirations of the people. This is the reason why the parliament is considered to be the supreme body of representation of the people with regard to democratic governance.

Many dictators, autocrats, monarchists and fascists, have from time to time, tried to assert their power by suppressing anti-parliamentary traditions. All such attempts throughout history have been defeated through the will and sacrifices made by the public. We still have to bear that responsibility.

The Parliament of Sri Lanka symbolizes the sovereignty of the people and the democratic nature of the state. Our parliament has a distinguished history. Our parliamentary system has earned the respect and admiration of the world, for producing eminent politicians who have championed the traditions of democratic governance.

But what is the status of the current parliament? As we have pointed out previously, the parliament has been reduced to a level of a post office after the passage of the 20th Amendment.

The intellectuals of this country, including the Maha Sangha and other religious leaders, have warned that with the passage of the 20th Amendment, democracy in this country would be destroyed and the legislative supremacy of parliament would be damaged.

We also warned that the transfer of the freedoms and rights of 21 million people to one individual could create fear and misery in the country. That is the present situation today.

The most serious blow and insult to parliament in recent times has been the attempt by external forces to shutdown the Public Utilities Commission, which was created with the blessings of the parliament.

Attempts are being made by the Secretary to the Treasury to abolish it on the instructions of the Secretary to the President. They are also urging the Hon. Members of the Commission to resign. Such attempts are not only arbitrary and anti-democratic, but also an undue interference of the executive on the legislature.

If the government wanted to amend the Act which established the Public Utilities Commission, the changes should have been made in parliament with the approval of the cabinet.

But what is happening today? As a former Speaker, I am deeply concerned by these incidents.

This is also shameful. The behavior of certain senior government officials in this country is appalling and sullies the reputation of the parliament.

All Hon. Members of Parliament across the political spectrum must pay attention to this. We also believe that the Hon. Speaker should clarify his stance regarding this.

The Public Utilities Commission was created by an Act of Parliament. The bill was brought for the benefit of the people. The PUCSL will protect the consumer against abrupt and unfair price increases. It will also prevent huge losses to the government with regard to the purchase of electricity at exorbitant prices.

This institution has done its duty for the last 19 years. Eminent professionals were appointed as members of this commission.  The members who had submitted their resignations recently were part of a distinguished team. So what are the reasons for destroying such an effective institution? People are likely to assume that this was done with bad intentions.

It was reported that the executive hopes to make new appointments to replace the members who have resigned. If such a process is carried out, the people of the country as well as the National Movement for a Just Society would strongly oppose these efforts. This is clearly an attempt to deceive the public. Similar to the appointments made recently to commissions, they will appoint their own political allies.

The Parliamentary Council recently appointed members to a various independent institutions. It is a well known fact that among them were individuals who have engaged in politics on behalf of the incumbent government. Government officials should understand that the public strongly opposes such appointments.

People are starting to question whether these members appointed by the Parliamentary Council in a highly partisan manner can actually function with independence?

We also recall how two Hon. Members of Parliament resigned when the 18th Amendment paved the way for such arbitrary appointments. Public perception, including our organisation, is that there should be no changes made to the existing Public Utilities Commission and its former members. I would like to bring this matter to the attention of the Hon. Members of Parliament. The public hopes that they will act boldly according to their conscience.

We hope that the government is aware of the fact that the public is mindful of the current state of affairs.  We urge the authorities not to insult the intelligence of the people.

We are an independent institution. We call for the protection of the democratic rights that were affirmed by the 19th Amendment but were destroyed by the 20th Amendment. Despite many obstacles, we will carry out this programme that was initiated by the Ven. Sobitha Thero with the most noble intentions. However, it seems that we do not have the support of the mainstream media in this country.

The intellectuals, especially the members of the Maha Sangha in this country, inquire from us about this. When we ask about it, journalists tell us that they cannot be held accountable for the decisions that are made by people above them. However, as the National Movement for a Just Society, we are committed to fulfilling our responsibility on behalf of our country.

The first investment within the Port City Colombo has been realised with the launching of  one billion dollar Colombo International Finance Centre (CIFC) Mixed Development Project in a land mark ceremony   on Thursday 17 December .

The momentous agreement between Browns Investments, the strategic investment arm of the LOLC Group, and China Harbour Engineering Company Limited (CHEC) was signed this morning in the presence of Prime Minister Mahinda Rajapaksa and Ambassador of China to Sri Lanka Qi Zhenhong.

“Attracting foreign direct investment is a key priority for the Government, and this landmark project is a strong indicator that Sri Lanka is now back in business,” Prime Minister Rajapaksa said.

He invited investors from around the world to explore the multitude of investment opportunities that Sri Lanka presents with its strategic location and human resource capabilities.”

The Port City Colombo was the brainchild of Prime Minister Rajapaksa, launched during his presidency together with Chinese President Xi Jinping during his state visit to Sri Lanka in 2014.

With an initial investment of US$ 1.4 billion and an expected overall investment of US$ 15 billion when completed, the Port City is set to be the leading business, retail, residential and tourist destination in South Asia.

The project comprises a total land area of 6.8 hectares, implemented under two phases. The first phase of the CIFC Mixed Development Project, with an investment of USD 450 million and comprising a land area of 3.06 hectares, will consist of the incorporation of a Special Purpose Vehicle (SPV) company, will be jointly managed by Browns Investments and CHEC.

The overall project, which will be implemented in a sustainable and socially-responsible manner, expects to create significant quality employment opportunities across a variety of sectors.

The reclamation of 269 hectares of land from the Indian Ocean was completed in January 2019 and was declared part of Sri Lanka in July 2019 after complying with all necessary formalities including a Parliament resolution.

Infrastructure development covering internal road network, water channel, utility connectivity, 2 km long public beach front and a 14-hectare large Central Park is currently in full-swing and on schedule for completion in 2021 where the PCC is well set to be the leading retail, residential and business destination in South Asia.

Built as an extension of the existing Colombo Central Business District, the PCC had an initial investment of USD 1.4 billion and an expected overall investment of USD 15 billion when completed.

There will be five different precincts in the completed Mixed Development scheme, namely the Financial District, Central Park Living, Island Living, The Marina and the International Island.

 Using the latest sustainable city designs and smart city concepts, PCC will be at the cutting-edge of global standards and is anticipated to be a focal point of South Asia.

President Gotabaya Rajapaksa has appointed an active pro-government politician to lead the Human Rights Commission of Sri Lanka (HRCSL). He has replaced the current Commission with new commissioners. The new chairman, Mr. Jagath Balasuriya, is a close relative of the Rajapaksa family and has long been involved in pro-Rajapaksa politics.

According to SJB MP Mujibur Rahman, Jagath Balasuriya is also the SLPP organiser of the Kegalle district. Chairman appointed Jagath Balasuriya was the Minister of National Heritage in the Sri Lankan government in the previous Rajapaksa Government.

He was the acting Governor of Central Province in 2005 from September to December and was appointed by President Mahinda Rajapaksa. His wife, Neranjala Pushpa Kumari Balasuriya, is the former Governor of the Southern Province of Sri Lanka since October 2006. Now, she is the personal secretary to her son, State Minster Tharaka Balasuriya.

Tharaka Balasuriya was appointed as the State Minister for Regional Cooperation by president Gotabaya Rajapaksa.

The European Union will be extending its support to set up One Stop Business Service Centres in rural areas countrywide, a high official of the EU residential delegation said in Colombo this week.

One such Business Service Centre designed under this project was opened recently in Monaragala and similar centres will be set up in several other rural areas as well, Thorsten Bargfrede Deputy Head, European Union Delegation to Sri Lanka said.

Addressing a webinar on women participation in Sri Lanka’s Micro, Small, Medium Enterprises (MSMEs) on Wednesday, he noted that it is essential to improve the quality standard of local products to face trade competitiveness both locally and internationally.

This online panel discussion was organised by Chrysalis, a Sri Lankan organization working to empower women and youth in collaboration with the European Union delegation office in Colombo.

Small businesses are essential for the country’s development and the EU has already extended assistance to SME sector export competitiveness, he pointed out.

Women are heavily involved in trade and are therefore a target group when it comes to capacity building of SMEs and exporters; he said.

He added that they are focusing on livelihood development and capacity building of rural women in several ongoing EU funded projects.

The Business Service Centre model was conceptualized and implemented by Chrysalis and the Enterprise Project funded by the European Union in Sri Lanka.

The Centre is expected to provide a conducive environment for over 18,000 MSMEs in the district to access regulatory, business growth technical advice and links to state and private sector resources and services.

The Business Centre will ensure service delivery is devoid of much administrative inefficiency that significantly impacts the SME sector in Sri Lanka – including specific challenges faced by women entrepreneurs.

State Minister for Development Banks and Loans, Shehan Semasinghe said that his ministry is ready to discuss with Chrysalis representatives on the modalities of the ongoing EU Funded “One Stop Business Service Centres” as the government will initiate a similar countrywide programme shortly.

25 district level one-stop service centres are to be set up island-wide for the registration of micro, small, and medium-sized enterprises (MSMEs).

The US Department of State, Bureau of Democracy, Human Rights and Labor (DRL) has announced an open competition for organizations interested in submitting applications for projects that advance and protect freedom of association and freedom of assembly in Sri Lanka. DRL seeks proposals for programs that utilize legal mechanisms and the judicial system to ensure these legal protections are enforced and these rights are respected in Sri Lanka.

Proposals should assess the use of policies, laws and programs on democratic political competition, civil society, and media freedom that are being put into place in Sri Lanka under the new government.

Additionally, proposals should provide legal and organizational support to organizations and individuals facing undue government restrictions, pressure, inspections, and censorship to ensure they can continue to operate, as well as foster civil society-led strategic litigation to advance the protection, fulfillment, and respect of human rights.

The proposed program must also address how it will ensure coordination with existing civil society networks, as well as ongoing civil society-led strategic litigation and advocacy efforts.

Proposed programming must be responsive to immediate needs on the ground, must be in line with the U.S. Government’s democracy, governance, and human rights goals in Sri Lanka

It should contribute to and support Sri Lanka’s efforts to strengthen democracy, governance, and human rights in the country.

All programs should aim to have impact that leads to reforms and should have the potential for sustainability beyond DRL resources. 

DRL’s preference is to avoid duplicating past efforts by supporting new and creative approaches.

Investigators have unearthed a massive tax evasion of more than Rs.6 billion by W.M. Mendis & Co. Ltd, one of the renowned liquor manufacturers in Sri Lanka, owned by Central Bank bond scam suspect Arjun Aloysius.

It has also defaulted Rs. 1.1 billion in excise duty up to now inflicting a massive loss to the Excise Department, according to a recent investigation by the Inland Revenue Department (IRD). This company has not paid necessary corporate income tax payment amounting to Rs. 2.63 billion and payment of VAT amounting to Rs. 3.55 billion to IRD during the previous regime and the IRD has taken legal action to recover these dues.

It was also revealed that this company has defaulted the repayment of a loan of Rs. 5 billion from the People’s Bank, Rs.4 billion loan from the Bank of Ceylon and Rs. 800 million from the People’s Leasing Company. It is also indebted to various institutions amounting to over Rs. 2 billion for the services provided for the company, the investigation revealed adding that these details are contained in official documents of those banks and financial institutions and are now in the public domain.

Meanwhile the legal alcohol industry tax revenue is shrinking due to an increase in the illegal production of liquor and tax evasion of a few errant companies and some retailers countrywide, industry sources alleged.

However, a new Finance Ministry report has revealed that the drop in tax revenue was the result of the decline in liquor production and liquor sales during the COVID-19 pandemic period.

The Business Times reported that leading liquor company heads have stated that high taxes, weak enforcement of existing rules, and corruption have resulted in the increase in illicit moonshine and ‘artificial toddy’. Another reason was the sale of tax-avoidance alcohol through the legal distribution system, they pointed out.

Alcohol tax is very high and strict regulations have been enforced by the successive governments prompting people to avoid taxes, bend rules and find loopholes in tax rules, they added.

A well planned illicit liquor delivery racket had been carried out by avoiding tax, through the illegal control of alcohol retail licenses by some alcohol producers and persons with high political connections, a top industry official disclosed.

This was one of the reasons for outstanding tax revenue of the Excise Department for the period of five years ending December, 2019 which stood at Rs. 2,376.2 million, the Parliamentary Committee on Public Accounts (COPA) said recently.

The decline in revenue from liquor observed in the months of March to May was reversed in the months of June to July showing the recovery of its growth momentum.

This recovery, however, has failed to prevent the decline in revenue by 4.1% to Rs. 72.5 billion during the first eight months of 2020 from Rs. 75.6 billion in the same period of 2019.