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Energy expert Ralapanawa comes out swinging against proposed detrimental amendments to block small-scale renewable energy projects

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Dr. Vidura Ralapanawa

By Ifham Nizam

Energy expert Dr. Vidura Ralapanawa has raised concerns over proposed amendments to Sri Lanka’s Electricity Act by the government, highlighting particularly two key changes that could significantly hinder the growth of small-scale renewable energy projects.

In his blog, he has stated that the proposed revision seeks to decrease the maximum capacity of renewable energy projects eligible for the Feed in Tariffs (FIT) mechanism from 10 megawatts (MW) to 1 MW.

Ralapanawa argues that this reduction would render the development of new mini-hydro and biomass projects unfeasible, as these technologies typically require capacities exceeding 1 MW to be economically viable. For wind energy, where individual turbines often have capacities between 3 to 4 MW, the proposed limit is particularly impractical.

Even for solar power projects, the inclusion of transmission line costs makes 1 MW installations financially unviable.

He points out that suggestions to locate such projects near substations are impractical due to land scarcity and high costs in those areas.

He emphasizes that the current 10 MW threshold has been instrumental in the success of various renewable energy projects in Sri Lanka, including utility-scale solar, wind, biomass, and mini-hydro developments. Reducing this limit could lead to increased transaction costs and implementation delays, as tendering small capacities becomes inefficient.

Another proposed change involves shifting the responsibility of setting tariffs, including FIT rates, from the PUCSL to the Ministry. Ralapanawa contends that this move is regressive, noting that in many jurisdictions, including India, tariff-setting is managed by independent regulatory bodies to ensure transparency and technical accuracy.

Drawing from his experience in the consultative process of FIT setting, Ralapanawa expresses concern that ministry-led tariff determinations have historically lacked the technical expertise necessary to establish economically viable rates. He cites instances where arbitrary pricing decisions were made without proper consideration of return on investment expectations or economic principles.

He warns that these amendments could deprive Sri Lankans of low-cost power in the future. Currently, FIT-based renewable energy procurement is the second-lowest cost power source in the country, after major hydroelectric projects. Additionally, FIT projects are contracted in Sri Lankan Rupees, providing a hedge against currency depreciation, unlike larger renewable projects contracted in U.S. dollars.

He also highlights the broader economic benefits of FIT-supported projects, which are typically developed by local entrepreneurs and small to medium-sized enterprises. These projects utilize local capital, generate significant employment opportunities, and ensure that financial benefits remain within the country, thereby contributing to a higher GDP multiplier effect.

He expressed disappointment that individuals known for their opposition to renewable energy initiatives were involved in drafting the proposed amendments.

He stressed that legislation should serve the nation’s interests and not be influenced by personal biases or ideologies.

Ralapanawa urges policymakers to reconsider these proposed changes, advocating for a legislative framework that supports the continued growth of renewable energy in Sri Lanka, ensuring energy security, economic development, and environmental sustainability.



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Former first lady Shiranthi Rajapaksa arrested by CIABOC

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Former first lady Shiranthi Rajapaksa, wife of former President Mahinda Rajapaksa was  produced before the Hulftsdorp court, after  being  arrested by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and produce

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U.S. Navy ship USS Tulsa arrives in Colombo for replenishment visit

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The U.S. Navy ship USS Tulsa (LCS 16) arrived at the Port of Colombo this morning, 7 October 2026 for replenishment purposes.

The visiting ship was welcomed by the Sri Lanka Navy in accordance with naval traditions.

The 127.7-metre-long platform is a Littoral Combat Ship commanded by Commander BM Wanier. Commissioned on 16 February 2019, USS Tulsa has since been in service with the US Navy.

The ship previously made a port call in Sri Lanka on 27 August 2025.

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Fuel crunch looms

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Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies

by Saman Indrajith and Norman Palihawadane

The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).

Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.

The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.

The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.

“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.

Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.

The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.

The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.

“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.

He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,

along with President Anura Kumara Dissanayake.

Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.

He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.

The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.

The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.

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