CEB signs PPA aimed at stabilizing electricity tariffs

In a strategic move to stabilize electricity tariffs and bolster investor confidence, the Ceylon Electricity Board (CEB) yesterday signed a Power Purchase Agreement (PPA) for the 350 MW Sahasdhanavi Combined Cycle Power Plant. The plant, set to run on regasified liquefied natural gas (R-LNG), is positioned as a cornerstone in Sri Lanka’s transition to a cleaner and more economically viable energy mix.

“The Sahasdhanavi project represents a crucial turning point in our journey towards energy security and cost-effective electricity generation, said Eng. Dhammike Wimalaratne, Chief Engineer at Kelanitissa and Media Spokesman for the CEB. “With R-LNG, we expect to cut fuel costs by nearly 50%, which directly translates to lower tariffs for domestic, commercial, and industrial consumers.”

Currently, renewable sources account for over 55% of Sri Lanka’s electricity generation, yet the country grapples with intermittent supply due to weather-dependent hydropower and solar. The Sahasdhanavi plant, once operational, will deliver flexible, on-demand power, especially during peak hours and low renewable output periods.

The CEB aims to commence power delivery within 30 months under Open Cycle operation and reach full Combined Cycle functionality a year later. The power will be supplied at a competitive rate of approximately Rs. 37 per kilowatt-hour.

“The energy sector’s modernization is not just about environmental benefits. It’s about economic resilience,” Wimalaratne emphasized. “Affordable, reliable power attracts investment, stabilizes the economy, and supports sustainable growth.”

By Ifham Nizam .