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Energy expert advises against country walking into fossil fuel trap
By Rathindra Kuruwita
The unit cost of a regasified liquefied natural gas (R-LNG) power plant will be Rs. 19 at the current exchange rate (Rs. 200 per dollar) and will further increase as the rupee depreciates, energy expert Vidhura Ralapanawe told The Island yesterday.
However, according to the CEB, the average selling price of a unit of electricity is around Rs.16.88.
Ralapanawe said that some experts were arguing for natural gas for electricity generation in Sri Lanka as a ‘low-cost option’. However, it would only be feasible if Sri Lanka printed US dollars, he said.
“I have taken the CEB’s own cost calculation for the 300MW LNG power plant (originally tendered in 2016) and is awaiting the PPA approval. The tender used a fixed exchange rate for 20 years at Rs 150 per USD. No other assumptions of the CEB (including fuel costs) has been changed.
“Revising the rate to 200 (January 2021) gives the RLNG-based power cost to be Rs 19 per unit. Using a 3% YoY depreciation moves exchange rate to Rs 225 in 2024 – the year we are likely to get RLNG (if it comes), and the cost moves to Rs. 21.70. According to the CEB, the average selling price is around Rs. 16.88.”
Ralapanawe said that the price would increase with transmission, distribution and other costs, making the CEB increase electricity tariff by a significant margin
“There is a recommendation by an expert associated with the CEB to increase tariffs by Rs. 2.30 per unit, per year. To meet the losses incurred by the Board.”
Ralapanawe said that the CEB could either increase tariffs to meet the losses or look at cheaper sources of electricity. Renewable energy was tendered in rupee between 9 – 13 Rupees per kWh, he added.
“As a country full of renewables, we should ask why we are purposefully walking into this fossil fuel trap.”
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Establishment of an Institutional Framework to Inagurate Upper Hydro Catchment Areas Management Authority
Policy approval of the Cabinet of Ministers was granted at their meeting held on 08.06.2026 to establish the Upper Hydro Catchment Areas Management Authority for identification and
execution of a formal and long – lasting remedy to secure the central hills including the upper hydro catchment areas enabling them to sustain amidst extreme weather conditions
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institutional structure, activities, powers, active subject area as well as administrative and coordination mechanism for the proposed authority by an expert technical committee appointed by the Secretary to the President.
Based on the said concept paper, the Cabinet of Ministers granted approval to the resolution furnished by the President to instruct the Legal Draftsman to prepare a draft bill including legal provisions required for the establishment of Upper Hydro Catchment Areas Management Authority.
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With the objective of securing the traditional livelihood and the eco system of the indigenous community, it has been recognized the necessity of introducing a formal regulation methodology to secure their engagement in livelihood activities by being more sensitive to the existing laws.
Thereby, the Fauna and Flora (regularizing) regulations under the Fauna and Flora Protection Ordinance (Authority 469) have been prepared so that nominated activities within the prescribed area to a member of the indigenous community
who has been registered for securing the rights acquired from law or custom or usage or traditional stance to execute an act within a certain state land that is fundamental to the survival of the indigenous community permission can be granted
Accordingly, the Cabinet of Ministers granted approval to the resolution furnished by the Minister of Environment to publish the said regulations in the government gazette notification and thereby submit to the Parliament for its concurrence.
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