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Expert: Mismanagement of CEB hydro resources increases costly oil-powered electricity generation

Published

12 months ago

2025/05/13

Vidura

The Ceylon Electricity Board (CEB) is in one of the strongest hydro storage positions in recent memory, but it has mismanaged key hydropower complexes, causing an increase in oil-powered electricity generation and and costs.

Energy expert Dr. Vidura Ralapanawe has raised serious concerns over CEB’s operational decisions, particularly the skewed use of the Mahaweli and Laxapana hydropower complexes. “By mid-May, the system had ample storage — about 60% overall — which is actually a very good position to be in just before the South-West monsoon rains,” he said. “But within that headline figure is a huge imbalance. Mahaweli reservoirs are near 75%, while Laxapana is languishing at 30%.”

This lopsided storage has already caused direct operational problems. The Canyon power station, which is fed by the Maussakele Reservoir in the Laxapana complex, has been forced to reduce its output. The 60MW plant is now operating at just 40MW due to limited water availability. Downstream, the 100MW New Laxapana station is similarly constrained.

The Laxapana complex is not just another hydropower asset — it plays a vital role in Colombo’s drinking water supply. It is required to run continuously to maintain flows for water treatment plants. “That means the CEB must generate from Laxapana 24/7, no matter what,” Ralapanawe said. “So how did they allow it to reach such a critically low level, especially when Mahaweli reservoirs are full?”

Ralpanawe said: “Instead of making adjustments to maintain operational flexibility, the CEB appears to have run the Laxapana complex harder than necessary in previous months while underutilising Mahaweli, where Victoria and Randenigala are sitting comfortably. The consequence? More reliance on oil-based thermal generation, even as the country’s dams remain well-stocked.”

“This is not just a technical problem — it’s an economic one,” he stressed. “Oil is expensive. When you underutilise hydropower in a year like this, you’re actively choosing to drive up the cost of generation.”

The apparent lack of coordination between the Mahaweli and Laxapana systems is especially baffling given the CEB’s long-standing familiarity with both. “The CEB has operated these systems for over 40 years. They know the inflows, the rainfall patterns, the seasonal irrigation releases — none of this is new,” Ralapanawe said.

Moreover, the growing integration of AI and data-driven forecasting tools in the global energy sector makes such mismanagement increasingly indefensible. “If, in the age of AI, we’re still hearing that ‘it’s too complex’ to manage these reservoirs in tandem, then something is seriously wrong,” he added.

Dr. Ralapanawe urges the CEB to provide an explanation: “Why was Mahaweli underdispatched when it was full? Why was Laxapana overused to the point that we now can’t get full capacity from critical plants like Canyon and New Laxapana? What is the economic impact of burning more oil than necessary?”

The missteps are already costing the public. Higher generation costs will ultimately be passed on to consumers in the form of increased tariffs, a burden made heavier in an already strained economy,” says Dr. Ralapanawe.

Ironically, 2025 was shaping up to be a strong hydro year, offering a rare opportunity for cost savings and reduced fossil fuel use. Instead, mismanagement has left key reservoirs unbalanced and locked the system into a more expensive operating mode — one that benefits oil suppliers but punishes the average household and industry.

Dr. Ralapanawe’s message is blunt: “This is not just about water and electricity. This is about public accountability and economic responsibility. If the CEB cannot manage two hydro systems properly with decades of data at its fingertips, then it must rethink its leadership and planning structures — or risk repeating the same costly mistakes year after year.”

Our efforts to contact CEB officials for comment were in vain.

By Ifham Nizam

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“Let’s move forward together in unity to build a country where all labour is valued, rights are protected, and equality prevails” -PM

Published

4 hours ago

2026/05/1

Priyan

Prime Minister Dr Harini Amarasuriya in her May Day message called upon the working people in Sri Lanka to move forward together in unity to build a country where all labour is valued, rights are protected, and equality prevails.

The full text of the PM’s message:

The history of the Sri Lankan labour movement is a remarkable journey, shaped over decades by the blood, sweat, and sacrifices made in the pursuit of rights, justice, and dignity.

Beginning with the printers’ strike of 1893, the working people of this country emerged as an organised force. Through the trade union movement led by A. E. Goonesinha and the emergence of the Lanka Sama Samaja Party, the voice of labour gained political strength. The Railway Workers’ Strike of 1923 and the public service strike of 1947 reaffirmed that the true ’driving force’ behind the country’s economic and social transformation was its working people. I respectfully acknowledge the invaluable contributions of workers in the plantation sector, ports, railways, and across both the public and private sectors, whose dedication laid the foundation for many of the labour rights we benefit from today.

As we commemorate International Workers’ Day with dignity once again, we pay tribute to all working people across the world, including the heroic workers who sacrificed their lives in the struggle for an eight-hour workday in Chicago in 1886. This year’s May Day holds special significance as it is being celebrated under a government built through the power of the people, in honour of the entire working community of Sri Lanka.

Granting due respect to labour and safeguarding the rights of all working people are core policy commitments of our government. Accordingly, we remain dedicated to creating a fair and safe working environment by expanding existing services and implementing new programmes aimed at improving the living standards of working people.

Ensuring fair and equal access for all citizens is a fundamental objective of the government. Following that, it is our responsibility to create an environment in which everyone can lead a dignified professional life. Establishing a national social protection system that recognises unpaid labour and guarantees social security for unpaid labours is among the foremost priorities of our government.

On this May Day, we must reaffirm the importance of moving forward together in unity to build a country where all labour is valued, rights are protected, and equality prevails. With the strength and dedication of all working people, may we soon achieve the vision we all share: “A Thriving Nation – A Beautiful Life

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Heat Index at Caution Level at some places in the Northern, North-central, Eastern, Sabaragamuwa and North-western provinces and in Monaragala district during the day time

Published

8 hours ago

2026/05/1

Priyan

Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 30 April 2026, valid for 01 May 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, Eastern, Sabaragamuwa, and North-western provinces and in Monaragala district during the day time.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

News

USD 2.5 mn fraud probe: Interdicted MoF official found dead at home

Published

8 hours ago

2026/05/1

Thilina Walpola

An Assistant Director of the External Resources Department (ERD) of the Ministry of Finance, interdicted pending an investigation into the diversion of US$2.5 million in Treasury funds to a rogue account was found dead at his residence in Kuliyapitiya.

The deceased has been identified as Ranga Nishantha, 50.

Police said the officer had been found in the garden of his house and they believed that the officila had committed suicide. However, investigators have not ruled out other possibilities, and inquiries are continuing.

The official was interdicted along with three other senior Finance Ministry officials over a cyber-enabled financial fraud.

Those interdicted include a Director and an Assistant Director from the ERD, as well as a Director and an Additional Director General from the Public Debt Management Office (PDMO).

Police sources said that the CID had on two occasions asked Nishantha to make a statement in connection with the ongoing investigation, but he had failed to comply.

Police said the CID probe into the alleged cyber fraud is continuing, with investigators examining the circumstances surrounding the diversion of funds through compromised communication channels.Kuliyapitiya Police said further investigations were underway to establish the exact cause of death.