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Wednesday June 19th, 2024

Sri Lanka schedules power cuts of 3 hours for March 01

ECONOMYNEXT – Energy and forex crisis-riddled Sri Lanka will see yet another scheduled power outage on March 01, this time at a stretch of three hours between 8.30am and 5.30pm, with a possible unscheduled interruption of 30 minutes at night.

The Public Utilities Commission of Sri Lanka (PUCSL) said it has approved a request by the Ceylon Electricity Board (CEB) to go for the scheduled load shedding.

In A,B,C areas, power cuts of 2 hours will be imposed from 8.30am to 17.30pm .

Also in P,Q,R,S,T,U,V,W areas power cuts of 3 hours will be imposed from 8.30am to 17.30pm.

“In those areas 300 MW to be shed from areas in P,Q,R and U,V,W groups while 200 MW to be shed from areas in S, T groups,” the CEB said.

“It is to be noted that above schedule shall not be adequate to cater the required deficit and additional hydro generation shall be utilized to meet the demand.”

Download the March 01, power cut schedule here: 01-03-2022-Power-Interruption-Schedule

Owing to a crippling forex shortage in the country, the state-run Ceylon Petroleum Corporation (CPC) has failed to maintain a continuous  supply of fuel to the CEB to run its thermal power plants, forcing the utility provider to go for power cuts, causing much inconvenience to the public.

Monday (28) saw the PUCSL approving power cuts that extended up to five hours and 15 minutes in many areas.

Analysts say the power cuts can extend till April- May depending on the fuel supply.

Due to the unavailability of fuel, the CEB said in a statement on Tuesday, the Kelanitissa power plant, the Kelanitissa combined cycle power station and the barge-based power plant at the Colombo port were all shut down while supplementary power stations in Mathugama, Thulhiriya, Kolonnawa were also unavailable due to lack of fuel.

According to the CEB, currently only the Sojitz and Uthuru Janani power plants have enough fuel to run for another 6.3 days and 8.1 days respectively.

The CEB said in order to supply the demand for March 01, the board needs 1,120 metric tons of furnace oil,  950 metric tons of naphtha and 2,640 metric tons of diesel. However, only  167 metric tons of furnace oil and 650 metric tons of diesel are in stock and no naphtha stocks are currently in store.

There is a deficit of 349 megawatts (MW) for the day peak, 479 MW for the evening peak and 49 MW for night peak for March 01.

Therefore, 100 MW will be shed as per the following schedule: from Kosgama, Seethawaka, Athurugiriya, Kegalle, Thulhiriya, Maliboda, Kurunegala, Pallekele, Kiribathkumbura, Ukuwela, New Galle, Balangoda, Deniyaya, Embilipitiya, Hambanthota, Rathnapura, Matara and Beliatta GSS. Refer annex 01 for feeder list. (Southern, Sabaragamuwa, Part of the Central, part of the North West and part of the Western provinces. (Colombo/Feb 28/2022)

 

Comments (4)

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  1. A.G.Roshan says:

    Gonapinuwala what is the group

  2. Susantha says:

    Inform the time to turn off the electricity in the Galewela ,kudawewa area

  3. Thavachelvi says:

    Could you please check our area schedule (uthayanagar west)

  4. Astrid Surber says:

    I am a tourist and would like to see what is on my plate for dinner! Come here since 15 years 3 months every year but this, sorry, is too much!!!

View all comments (4)

Comments (4)

Cancel reply

Your email address will not be published. Required fields are marked *

  1. A.G.Roshan says:

    Gonapinuwala what is the group

  2. Susantha says:

    Inform the time to turn off the electricity in the Galewela ,kudawewa area

  3. Thavachelvi says:

    Could you please check our area schedule (uthayanagar west)

  4. Astrid Surber says:

    I am a tourist and would like to see what is on my plate for dinner! Come here since 15 years 3 months every year but this, sorry, is too much!!!

Central banks expect to increase gold reserves after buying 1,037 tonnes in 2023: Survey

ECONOMYNEXT – About 29 percent of central banks in the world intended to increase their gold reserves in 2023, up from 24 percent in 2023 and just 8 percent in 2019, a survey by the World Gold Council showed.

“The planned purchases are chiefly motivated by a desire to rebalance to a more preferred strategic level of gold holdings, domestic gold production, and financial market concerns including higher crisis risks and rising inflation,” the WGC said.

About 81 percent of 70 central banks that responded to the survey expected global central bank holdings of gold to go up, from 71 percent in 2023.

While in prior years, gold’s “historical position” was the top reason for central banks to hold gold, this factor dropped significantly to number five this year.

This year, the top reason for central banks to hold gold is “long-term store of value / inflation hedge” (88%), followed by “performance during times of crisis” (82%), “effective portfolio diversifier” (75%) and “no default risk” (72%).

Concerns about sanctions were listed as by 23 percent of emerging market central banks (0 advanced).

De-dollarization as a reason to hold gold gained ground, but was not among the main reasons.

About 13 percent of emerging market central banks listed de-dollarization as one of the reasons to buy gold up from 11 percent last year and 6 advanced nations said the same from zero last year.

Around 49 percent of central banks expected gold reserves to be moderately lower five year from now in the 2024 survey, against 49 percent in 2023 and 38 percent in 2022.

About 13 percent of central banks surveyed said US dollar reserves would be significantly lower in the 2024 survey, up from 5 percent in 2023 and 4 percent in 2022. (Colombo/June18/2024)

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Sri Lanka rupee closes weaker at 304.75/305.40 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed weaker at 304.75/305.40 to the US dollar Tuesday, down from 304.15 to the US dollar Friday, dealer said, while some bond yields edged up.

Sri Lanka’s rupee has weakened amid unsterilized excess liquidity from earlier dollar purchases.

Excess liquidity fell from as high as 200 billion rupees, helped by some sales of maturing bills and also allowing some term contracts to run out.

However the central bank has started to inject liquidity again below its policy rate to suppress interest rates.

On Tuesday 30 billion rupees was printed overnight at an average yield of only 8.73 percent.

Separately another 25 billion rupees was printed till June 25 at 8.09 percent to 9.05 percent, which was still below overnight the policy rate of 9.5 percent.

Nobody has so far taken the central bank to court for printing money beyond overnight at rates lower than the overnight rate.

Sri Lanka operates an ad hoc exchange rate regime called ‘flexible exchange rate’ which triggers panic among market participants, as the central bank stays away when spikes in credit either creates import demand or unsterilized credit is used up.

“If large volumes of unsterilized liquidity is left, the exchange rate has to be closely defended to prevent speculation involving early covering of import bills and late selling of exports proceeds,” EN’s economic columnist Bellwether says.

“Just as an appreciating or stable exchange rate leads to late covering of import bills, a falling rates leads to immediate covering of import bills.

“Keeping exchange rates stable is a relatively simple exercise but it is difficult to do so if short term rates are also closely targeted with printed money, as liquidity runs out, as if the country had a free float and no reserve target.”

“When there is a large volume of excess liquidity remaining (except those voluntary deposited for long periods by risk averse banks) the the interest rates structure is under-stated compared to the reported reserves.

“Interest rates would be a little higher than seen in the market if the liquidity was mopped up and domestic credit and imports were blocked to prevent the reserves from being used up.”

In East Asia there is greater knowledge of central bank operational frameworks, though International Monetary Fund driven flawed doctrine are also threatening the monetary stability of those countries, critics say.

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Vietnam selling SBV bills to stabilize the Dong, as Sri Lanka rupee also weakens

Sri Lanka’s rupee started to collapse steeply after the IMF’s Second Amendment in 1978 along with many other countries as flawed operational frameworks gained ground without a credible anchor.

A bond maturing on 15.12.2026 closed at 10.10/30 percent up from 10.05/30 percent Friday.

A bond maturing on 15.10.2027 closed at 10.60/57 flat from 10.60/80 percent.

A bond maturing on 01.07.2028 closed at 11.15/35 percent, up from 11.05/20 percent.

A bond maturing on 15.09.2029 closed at 11.80/90 percent unchanged.

A bond maturing on 15.10.2030 closed at 11.90/12.00 percent.

A maturing on 10.12.2031 closed at 11.95/12.10 percent.

A bond maturing on 01.10.2032 closed at down at 11.95/12.10 percent, down from 12.00/10 percent. (Colombo/Jun14/2024)

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Sri Lanka’s Ceylon Chamber links up with Gujarat Chamber

ECONOMYNEXT – The Ceylon Chamber of Commerce has signed an agreement with the Southern Gujarat Chamber of Commerce and Industry (SGCCI) to increase trade cooperation between India and Sri Lanka.

The MOU was signed by CCC CEO Buwanekabahu Perera, SGCCI President Ramesh Vaghasia, in the presence of Dr Valsan Vethody, Consul General for Sri Lanka in Mumbai, India.

“With the signing of the MoU, … the Ceylon Chamber of Commerce and SGCCI aim to facilitate trade between the two countries via initiatives such as trade fairs and delegations, business networking events, training programmes,” the Ceylon Chamber said in a statement.

“This partnership will open doors for Sri Lankan businesses to explore opportunities in Surat’s dynamic market and enable the sharing of expertise and resources between the two regions.”

Established in 1940, SGCCI engages with over 12,000 members and indirect ties with more than 2,00,000 members via 150 associations. It promotes trade, commerce, and industry in South Gujarat.

The region’s commercial and economic centre Surat has risen to prominence as the global epicenter for diamond cutting and as India’s textile hub, and is ranked the world’s 4th fastest growing city with a GDP growth rate of 11.5%

Surat’s economic landscape is vibrant and diverse. As India’s 8th largest and Gujarat’s 2nd largest city, it boasts the highest average annual household income in the country.

The nearby Hazira Industrial Area hosts major corporations like Reliance, ESSAR, SHELL, and L&T. (Colombo/Jun18/2024)

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