News
Solar industry warns of crisis amid power curtailment
President of the Grid Connected Solar Power Association of Sri Lanka (GCSPASL), Prabath Wickramasinghe, said the national grid is losing nearly four million units of electricity per day due to the continued curtailment of grid-connected solar power plants.
Addressing a press conference in Colombo last week, Wickramasinghe warned that Sri Lanka’s renewable energy sector is facing a deepening crisis as prolonged power curtailment threatens the viability of local solar developers. Industry representatives cautioned that continued uncertainty could lead to widespread financial losses and the eventual collapse of the sector.
He noted that local solar developers currently supply approximately 1,800 MW of clean energy to the national grid. However, the Association said that for more than nine months since February 2025, power generation from large renewable energy plants has been curtailed on weekends and public holidays. While the Ceylon Electricity Board (CEB) has described the measure as an “emergency,” industry stakeholders argue that a recurring practice over several months cannot reasonably be classified as such.
According to Wickramasinghe, the curtailment has reduced monthly revenues of ground-mounted solar power plant owners by around 15 percent, severely disrupting cash flows. He stressed that these plants operate under “Must Run” status as specified in their Power Purchase Agreements (PPAs), and that curtailment therefore constitutes a breach of contractual obligations.
The Association also highlighted delays in the implementation of Battery Energy Storage Systems (BESS), despite developers expressing readiness to invest in storage facilities to absorb excess daytime solar generation and supply power during night-time peak demand. Although the Cabinet approved a tariff of Rs. 45.80 per unit in June 2025 and granted tax concessions in September, the CEB has yet to issue implementation guidelines or amend PPAs, despite directives from the Ministry of Power. As a result, the country continues to rely on expensive diesel-based power generation, placing further pressure on foreign exchange reserves.
Concerns were also raised over the proposed National Electricity Policy (2025). The Association warned that the planned removal of the Feed-in Tariff (FIT) mechanism—under which 92 percent of projects below 10 MW currently operate—would marginalise small and medium-scale local developers. The proposed shift to fully competitive bidding, curtailment without compensation, and rupee-denominated contracts were cited as increasing financial and exchange rate risks for investors.
The Association cautioned that these policy changes could lead to a rise in non-performing loans in the banking sector, as many renewable energy projects are financed through local banks and are now struggling to meet repayment obligations.
Calling for urgent government intervention, the Association urged authorities to immediately issue BESS-related guidelines, compensate developers for past losses, and retain the FIT system. Industry leaders stressed that private sector participation is essential to achieving Sri Lanka’s renewable energy targets by 2030, warning that continued delays could have long-term consequences for the economy and national energy security.
The Ceylon Petroleum Corporation (CEYPETCO) has announced a revision of fuel prices, effective from midnight on Saturday (May 30).
Accordingly,
the price of Auto Diesel has been increased by Rs. 15 to Rs.407 per liter,
the price of Super Diesel has been increased by Rs. 20 to Rs. 478 per liter.
the price of Petrol 92 Octane has been increased by Rs. 24 to Rs. 434 per liter
the price of Petrol 95 Octane up by Rs. 25 to Rs. 495 per liter
the price of kerosene by Rs. 20 to Rs. 285 per liter.
Former President Chandrika Bandaranaike Kumaratunga has called for a comprehensive reform programme within Sri Lanka’s Buddhist clergy, warning that repeated efforts to strengthen the Sasana have in the past been derailed by opposition from within sections of the Sangha itself.
In a statement addressed to the Mahanayake Theras of the three Buddhist chapters, Kumaratunga stressed that the long-term preservation of Buddhism depends on safeguarding both the Dhamma and Vinaya, or disciplinary code, and urged urgent internal reform to address what she described as deep-rooted structural weaknesses.
She noted that Buddhist history has consistently demonstrated that periods of institutional crisis were addressed through reform processes, citing precedents from the First Buddhist Council to reforms during the Kandyan era under Welivita Sri Saranankara Thera.
Referring to post-independence efforts, Kumaratunga said initiatives taken during the 1956 Bandaranaike administration to strengthen Buddhism were left incomplete following the assassination of former Prime Minister S.W.R.D. Bandaranaike.
She further stated that during her own presidency, plans to convene a Buddhist Council under the guidance of the late Madihe Pannasiha Mahanayake Thera had received government backing but were ultimately abandoned due to resistance from certain sections within the clergy.
The former President alleged that, on both occasions, vested interests benefiting from existing weaknesses within the Buddhist establishment had worked to obstruct meaningful reform efforts.
Warning that Buddhism in Sri Lanka is currently facing serious challenges, she called for a broad internal dialogue within the Sangha to identify root causes and implement both short- and long-term corrective measures.
Kumaratunga urged the Mahanayake Theras to take the lead in convening a Dharma Sanghayana, or Buddhist Council, and said she was prepared to work with senior lay Buddhist leaders to support such an initiative.
The Colombo Fort Magistrate’s Court on Friday ordered the arrest of former Minister Basil Rajapaksa, Tourism Promotion Bureau Chairman Bhashwara Gunaratne, Managing Director Rumi Jauffer and several others over the alleged misuse of Rs. 7.8 million belonging to the Tourism Promotion Authority during the 2014 Uva Provincial Council election campaign.
Magistrate Pasan Amarasena directed the Criminal Investigation Department (CID) to arrest and produce the suspects before court, after it was informed that they would be named under the Public Property Act on the advice of the Attorney General.
The CID told court that attempts to take the suspects into custody from their residences had been unsuccessful as they were not present.
The Magistrate also imposed an overseas travel ban on the suspects and ordered that the Controller of Immigration and Emigration be notified.
Investigations have reportedly revealed that the funds were used to print 12,000 T-shirts bearing an image of former President Mahinda Rajapaksa on one side and the name of a political party on the other.
According to the CID, the T-shirts were later distributed at a political event held in the Monaragala District.
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