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Monday October 19th, 2026

Sri Lanka CEB system control ‘amazing’ in coping with invisible rooftop solar: energy expert

ECONOMYNEXT – An international expert who prophetically warned about power system instability from a large rooftop solar power share, barely two weeks before a cascading power failure, expressed amazement about how Sri Lanka system operators are coping.

The CEB’s system control was unable to stop an outage from a suspected wildlife intrusion into a major cascading failure due to lack of ‘intertia’ in the system to withstand disturbance due to large share of solar on February 09.

Inertia comes from large rotating generators which are shut in Sri Lanka as solar power peaks in daytime, and the problem is bad on weekends when factories and offices are closed.

“They don’t have flexibility to control because they have limited inertia,” Jaimes Kolantharaj, Principal Energy Specialist, Asian Development Bank told a forum in Colombo on January 30, less than two weeks before a cascading failure.

“It is amazing to see how system control operates. The system is totally in darkness during the daytime.”

Related Sri Lanka cascading power failure fanned by big rooftop solar share: CEBEU

Sri Lanka’s power utility has been cash-strapped for years, due to a failure in price regulation due to various reasons. as the rupee collapsed from flexible inflation targeting and coal plants were blocked by activists.

The utility owed hundreds of billions of rupees to fuel and power suppliers when the International Monetary Fund stepped in with a stabilization program after a sovereign default in 2022, forcing the regulator to hike prices.

Sri Lanka had an estimated 1,400 MegaWatts of distributed solar units which was about half the daytime demand and very much more on weekends on which the system control had no data.

“The solar PV is not at all visible to the system operator, but this peak capacity may be much higher because the installed capacity is reaching almost 1.4 gigawatt and it may grow in the future in 2025,” Kolantharaj said.

“So over 50 percent of daytime demand will be met through distributed RE. And there is no visibility for system control, limited predictability. There is no forecasting tool available in system control, limited control.”

The Asian Development Bank recently approved a loan, which will give an initial control desk for system control to monitor renewable.

Widespread smart metering is needed to monitor the rooftops and other renewables which the CEB can neither see nor switch on or off at the moment.

The only option is to shut entire feeders.

Sri Lanka’s system control “needs immediate recovery”, Kolantharaj said.

After Sri Lanka’s debt was declared unsustainable by the International Monetary Fund five years ago in 2020 following rate and tax cuts by macroeconomists, multilateral lenders were forced to stop new lending.

After the IMF program started they focused initially on budget support, not project loans.

The Asian Development Bank recently approved a project loan of 200 million dollars to upgrade the grid and do the first battery storage unit.

The loan has allocation for a renewable energy center and a well as grid-scale BESS and urgent action was needed to implement the loan and bidding for equipment,

READ ADB approves $200mn Sri Lanka loan for battery storage, grid upgrade
 
In addition to the first battery storage unit which will only be 100MW/100MWh, the ADB and Sri Lanka authorities were working on a roadmap for Advanced Metering Infrastructure. New batteries can also respond to voltage changes in milliseconds.

At the moment the CEB’s low tension network is tripping due to over-voltage from solar rooftops. The CEB was reluctant to approve a new rooftop as a result and tripping in any case reduced the generation of solar power.

Discussions were ongoing on the statutory voltage response settings, and statutory voltage, he said.  (Colombo/Feb10/2025)

Sri Lanka rupee closes weaker at 331.60/70 to US dollar spot, bond yields higher

ECONOMYNEXT – Sri Lanka’s rupee closed at 331.60/770 to the US dollar in the spot market on Monday, weaker from 331.25/35 the previous day, while bond yields closed higher, dealers said.

A bond maturing on 15.09.2029 closed at 11.10/25 percent, up from 11.05/15 percent.

A bond maturing on 01.08.2030 closed at 11.50/60 percent, up from 11.40/50 percent.

A bond maturing on 15.10.2030 closed at 11.65/75 percent, up from 11.50/55 percent.

A bond maturing on 01.02.2031 closed at 11.75/80 percent, up from 11.55/65 percent.

A bond maturing on 15.12.2032 closed at 11.90/12.10 percent, up from 11.80/90 percent.

A bond maturing on 15.01.2033 closed at 12.25/30 percent, up from 11.95/12.05 percent.

A bond maturing on 15.06.2034 closed at 12.40/50 percent, up from 12.20/25 percent. (Colombo/Oct19/2026)

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Sri Lanka shares close down on Monday; ASPI falls 0.62-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Monday, CSE data showed, with the benchmark All Share Price Index falling 0.62 percent.

The ASPI was down 125.63 points at 20,059.42, while the more liquid S&P SL20 was down 0.51 percent, or 29.36 points, at 5,709.47.

Raynal Wickremeratne, Head of Research and Strategy at NDB Securities, noted that market turnover remained low, with local sentiment reflecting the recent volatility and declines across regional Asian markets.

Positive contributors to the ASPI were Watawala Plantations (up 2.43 percent at 46.40 rupees), Richard Pieris and Company (up 1.54 percent at 26.40 rupees), Ceylon Cold Stores (up 0.62 percent at 122.00 rupees), and Commercial Bank of Ceylon (up 0.13 percent at 198.25 rupees).

Dialog Axiata (down 2.27 percent at 43.00 rupees), Overseas Realty (Ceylon) (down 2.00 percent at 49.00 rupees), John Keells Holdings (down 1.67 percent at 17.70 rupees), Hemas Holdings (down 1.29 percent at 30.50 rupees), and Hatton National Bank (down 0.79 percent at 375.00 rupees) were top negative contributors.

Market turnover was 680.32 million rupees. The banking sector led turnover with 188.71 million rupees, followed by capital goods with 177.78 million rupees.

Crossings were recorded in Seylan Bank for 98 million rupees and John Keells Holdings for 26 million rupees. (Colombo/Oct19/2026)

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Sri Lanka drops $280mn Colombo Port logistics JV with China Merchants, calls new PPP bids

ECONOMYNEXT  – The Sri Lanka Ports Authority (SLPA) will seek a private partner through competitive bidding to build a new logistics hub at the Port of Colombo, after scrapping an earlier 280 million US dollar joint venture with China Merchants Port Holdings and Access Engineering PLC.

The earlier project was formed in 2023 under South Asia Commercial and Logistics Hub (SACLH), with China Merchants holding a 70 percent stake, while the SLPA and Access Engineering held 15 percent each.

The consortium planned to build a 150,000-square-metre modern logistics complex.

However, following a review of external circumstances, commercial considerations, and shareholder interests, the parties decided to discontinue the venture.

As part of the exit arrangement, approximately 29.8 million US dollars in equity contributions will be refunded to the three shareholders in proportion to their stakes.

The port authority emphasized that walking away from the joint venture does not mean it is abandoning logistics infrastructure.

“The decision not to proceed with the earlier joint venture does not represent a departure from its commitment to logistics infrastructure development. Rather, it provides an opportunity to pursue an alternative development model,” the SLPA said.

The authority will now launch an open competitive bidding process to set up the facility under a Public–Private Partnership (PPP) model, subject to relevant approvals.

The project will utilize a large land area inside the port to host integrated, value-added logistics services, bring in private investment, and earn long-term revenue.

Officials said the hub will help transform Colombo from purely a container transshipment terminal into a full maritime center, serving shipping lines, cargo owners, and logistics operators.

“The SLPA remains firmly committed to positioning the Port of Colombo as a leading maritime, transshipment and logistics hub in South Asia, while ensuring that future port development initiatives are commercially viable,” the SLPA said.  (Colombo/Oct19/2026)

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Sri Lanka IRD urges 1.2-mn taxpayers to file returns before Nov 30 deadline

ECONOMYNEXT – Sri Lanka’s Inland Revenue Department (IRD) has urged close to 1.2 million registered individual taxpayers to file their 2025/2026 income tax returns online before the November 30 deadline, warning of penalties and legal action for non-compliance.

Officials said that all registered individuals must submit their annual returns.

This includes individuals who do not have taxable income, as well as those whose taxes have already been deducted at source through Pay-As-You-Earn (PAYE), Advance Personal Income Tax (APIT), or withholding tax on bank interest.

Failure to submit returns empowers the Commissioner General to impose financial penalties, issue estimated assessments or initiate legal proceedings against defaulters.

“Even if withholding tax has been deducted from your salary, or even if withholding tax has been deducted from your interest, we expect all of you to submit the return relevant to the 2025/2026 Year of Assessment by November 30,” Inland Revenue Deputy Commissioner General J M S S Rathnawardana said.

Rathnawardana said that while the online submission portal has been open since July 1, taxpayers should file well in advance rather than waiting for the final deadline.

To complete the filing, taxpayers must log into the IRD’s RAMIS system via ird.gov.lk using a password or one-time password (OTP) sent to their registered email or postal address.

Taxpayers needing to update their email can send a written request and a copy of their National Identity Card to ci@ird.gov.lk.

The department has provided an auto-filled, simplified return for individuals whose earnings come solely from employment and interest.

Taxpayers with business income are required to complete the standard return.

“What we earnestly request from everyone—since a large volume of returns is expected to be submitted in the coming month—is not to wait until the very last moment. We have technical constraints, and we can only facilitate submissions within those system capacities,” Inland Revenue Commissioner Nandana Kumara said.

Once submitted, taxpayers will immediately receive an official electronic acknowledgment as proof of filing. The department has also set up advisory desks at its head office and regional branches, alongside call centre support on 1944, to assist filers. (Colombo/Oct19/2026)

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Sri Lanka holds pre-bid meeting ahead of Domestic Dollar Bond issue

ECONOMYNEXT – Sri Lanka’s Public Debt Management Office (PDMO) has held a pre-bid meeting with designated agents ahead of the planned issuance of a new Domestic Dollar Bond (DDB) 2026, a US dollar-denominated debt instrument aimed at diversifying government funding sources and deepening the local government securities market.

The PDMO, under the Ministry of Finance, said the DDB 2026 will be offered in the domestic market through 15 designated agents comprising primary dealers and licensed commercial banks.

A pre-bid meeting was held on October 16, with all 15 designated agents and the paying agent participating, the ministry said.

According to the PDMO, the meeting was held to provide clarification on the operational and regulatory aspects of the upcoming bond issuance.

Officials from the Central Bank of Sri Lanka’s Foreign Exchange Department, as well as the Fiscal Policy Department and Treasury Operations Department of the General Treasury, were present.

The government said the bond issue forms part of broader efforts to diversify its financing base while supporting the development of the domestic market for government securities. (Colombo/Oct19/2026)

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Dialog cuts controlling stake in Doc990 operator Digital Health to 45-pct

ECONOMYNEXT – Dialog Axiata PLC has reduced its controlling stake in Doc990 operator Digital Health (Private) Limited, meaning the digital platform will cease to be a subsidiary and will become an associate company, a stock exchange filing showed.

Under the ownership reorganisation, Dialog’s wholly owned unit, Digital Holdings Lanka (Private) Limited, sold a 16.65 percent stake (3,747,132 shares) to Sunshine Healthcare Lanka Limited for 312.17 million rupees.

Digital Holdings also sold a 3.35 percent stake (752,868 shares) to Nawaloka Hospitals PLC for 62.72 million rupees, after Nawaloka exercised its right of first refusal under the shareholders’ agreement.

“The transaction enables the Company to partially monetise its investment in Digital Health while introducing Sunshine Health as a strategic healthcare partner,” Dialog Axiata Director and Group Chief Executive Supun Weerasinghe said in a regulatory filing.

Separately, Ceylon Hospitals PLC (Durdans Hospital) sold its entire 5.26 percent holding of 1,184,211 shares to Sunshine Health through tag-along rights.

Following the transactions, Sunshine Healthcare, a subsidiary of Sunshine Holdings PLC, entered the company with a 21.92 percent stake.

The share sales reduced Dialog Group’s combined stake from 64.66 percent to 44.66 percent, held through Digital Holdings and the Dialog Axiata Digital Innovation Fund.

Consequently, Digital Health will cease to be a subsidiary of Dialog and will be accounted for as an associate in its consolidated financial statements under Sri Lanka Accounting Standards.

“The transaction is expected to support the continued growth of the Doc990 platform by combining its digital healthcare capabilities with Sunshine Health’s presence across the pharmaceutical, healthcare distribution, manufacturing and retail sectors,” Weerasinghe said.

Among the remaining shareholders, Nawaloka Hospitals increased its shareholding to 12.12 percent, while Asiri Hospital Holdings PLC retains 13.33 percent and Aartiz Technologies (Private) Limited holds 7.98 percent. (Colombo/Oct19/2026)

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