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Mess in energy sector

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By Eng. Parakrama Jayasinghe
parajayasinghe@gmail.com

Over the years, I have published articles, originally addressing particular segments of the energy sector, in the hope of some sanity emerging in the sector in the broader interest of the consumers and Sri Lanka in general. But, of late, I have tried to focus on the entire sector, which is vital to the national interest by the very nature of the Sri Lankan energy scene and its ramifications that are unfolding. A major flaw in the thinking and actions of the energy authorities is their inability to understand that the Energy Sector is not limited to Electricity, but spans a much wider scope.  Focusing on individual segments is a recipe for disaster, which has been proven more than once and are staring in our faces right now.

A few of these articles are listed below, which is only a small fraction of all I have published:

CEB wants to be a follower of old technology – August 2018

Losses due to blockage of RE Projects

– February 2020

The Origin and Way out of the Energy Crisis

– April 2019

The Sri Lankan Energy Sector – A Mill Stone –

August 2023

The focus on particular aspects individually, which is the present practice, is not logical for a visionary and sustainable development and maintenance of this vital sector of the economy. The responsibility of the two major sectors of Electricity and Petroleum being under a single Minister has not yielded the desired outcome.

I feel obliged to provide some justification for the events that led to my conclusion and the validity of my title for this article, to pre-empt the loud objections that are bound to be levelled against me, by those whose noses would burn in recognizing their culpability of taking Sri Lanka to this abyss.

A cost reflective electricity tariff?

The massive hike in consumer tariff in February 2023 was the most socially-insensitive proposal. Fortunately, it was corrected somewhat in the July revision. But everyone is apprehensive about what will happen in January 2024.  This massive hike, touted as a cost-reflective tariff, obviously at the behest of the IMF, was supposed to be an essential adjustment to make CEB financially independent of the annual rescue moves by the Treasury (read rescue by the consumers, who have been carrying this burden indirectly year after year). But did this happen?

We see news reports on the CEB demanding further tariff hikes immediately, purportedly to avert losses for the current year, too, amounting to 50 Billion rupees or more.  So, who will be held responsible and accountable for this highway robbery?

The answer is obvious, judging by the past practices. Who should be held responsible for running up a financial deficit of near a trillion rupees over the past decade, all of which were passed on to the public with no one held accountable or made to feel any slightest pain of their own?

Continued dependence on Emergency Power

One may think the need for dependence on expensive emergency power occurs only in case of emergencies. But whoever heard of adding emergency power as a component of future energy plans?  What price the least-cost option being the primary principle of the 20-year-long-term generation plan?  If that is the only solution that can be offered by the planners or the designers, they lack competence to continue to serve in such positions. Even more damaging is the fact that those who are supposed to govern the sector, both at the CEB and at the Ministry, accept such retrogressive and damaging solutions to meet the national electricity demand, which is predicted many years in advance.  A substantial amount of emergency power, at highly enhanced cost, has been approved by the Cabinet and even by the PUCSL for the year 2024 already.  Obviously, no one is demanding nor the CEB is offering any viable alternative. The easy solution has been to pass the burden of the added cost on to the public, as has been done for years in the past. Uninterrupted supply of electricity 24/7 irrespective of cost?

The unprecedented power crisis in early 2022 made Sri Lankans realise the dangers of over dependence on imported resources for energy. The two major streams of energy demand ground to a halt for want of foreign exchange to pay for imports. In parallel, even the kitchen fires went out due to lack of LPG.  Everyone had to accept the many hours of power cuts and long queues for fuel. The efforts of the government to mitigate the crisis must be appreciated. But the consumers are burdened with tariff hikes as the price.

However, the role of any responsible government and those in authority on the entire energy sector, regardless of which Ministry they serve under, should be much more visionary and proactive, at least to minimize this danger in the short term and then eliminate it entirely in the medium term.

The developments in the energy sector, worldwide, and the much-delayed recognition of the bounty that mother nature has bestowed on Sri Lanka, should have been the greatest incentive for this process to be expedited.  The fact that on some days  Sri Lanka was powered with zero dependence on oil-based generation and much-reduced use of coal as well as the drain on exchange for import of transport fuels saw a significant reduction was the best driver for a government with the longer term interests of the country at heart to initiate and follow that path. The people would have come to terms with a two-and-a-half-hour power cut and the rationing of fuel longer if they had been convinced that there was plan to achieve energy security. (See figure 1)

However, the Ministry of Power and Energy, or the state institutions under it, does not seem to have recognised this as their responsibility or has chosen to ignore it entirely. Instead, its actions appear to be driven purely by a political agenda. The present practice of ensuring an uninterrupted electricity supply by using the most expensive option of oil-based power, and removing all controls on supply of transport fuels with no consideration of costs, both in rupees and even more prodigal expenditure of dollars that we don’t have, is deplorable.

The public is to face a heavier burden, going by the media reports appearing, which predicts a loss of over Rs 50 Billion for the CEB, in 2023, in spite of the massive hike in consumer tariff.  The increase in the country’s foreign debt due to this kind of expenditure is not yet known.

Is Sri Lanka helpless?

In spite of the many problems and difficulties, one area where Sri Lanka has been endowed with ample resources is energy.  While issues of costs and lack of funds and technologies prevented harnessing this bounty in the past, the circumstances have changed in our favour during the past decade or so. While some enterprising individuals and companies came to the forefront and practically demonstrated this viability, several state organisations with monopoly rights and the lack of governance by the Ministries and the government have landed Sri Lanka’s energy sector in the present sorry state. It is being claimed in some quarters that Sri Lanka cannot raise the funds for renewable energy projects and does not have the technical capability to develop them. But this is an untruth aimed at bringing in foreign entities to the sector. Even a 100 MW solar plant consists of about 175,000 of individual solar panels, a pair of panels with capacity 1 kW being viable as a unit. There is absolutely no reason to lump them together to capacities over say 10 MW just to shut out the local entrepreneurs and technology companies and add the long transmission lines as an added infrastructure requiring more investments by the state. In case of wind power, the unit size has grown up to about 5.0 MW only. The success of the Suryabala Sangramaya, which has already led to the development of over 700 MW of solar energy to the grid is a case in point. That source alone could provide 5,000 MW of generation capacity and 7,000 GWh of energy to the national grid, if the CEB takes it upon themselves to champion it rather than finding excuses to deter the potential “prosumers”. ([RJ4])

There is a need to attract foreign investments and tap the many green funds already available. But these must be done on our terms. Any attempt to pay dollars for the supply of electricity for our consumption cannot be accepted under any circumstances.

Are we to buy our solar energy with dollars?

Are we to buy our solar energy with dollars?

It is feared that this is what may have been agreed with the Indian investor for the project in Mannar and Purnaryn, the agreements on it being totally in violation of the provisions of the Electricity Act. But all state officials are bending over backwards to help this company; they are even obstructing the processing of projects nearby by local developers.

(Sri Lankan energy sector as millstone around nation’s neck

https://island.lk/sri-lankan-energy-sector-as-millstone-around-nations-neck/)

These resources are sufficient to meet our renewable energy needs forever and earn foreign exchange. The much-talked about power link to India is technically and financially viable, provided it is designed and executed to meet Sri Lanka’s interests and not as part of the ongoing privatization programme. The government’s move to hand over large tracts of lands to foreigners cannot be accepted under any circumstances.

Under these bleak conditions the award of the 100 MW solar project in Siyambalanduwa to two local companies provides a ray of hope. As we proposed some time ago, it should have been a 4 x 25 MW system, which could have been funded locally.

It is time Sri Lankans insisted that the energy sector remain an indigenous industry geared to develop its own indigenous renewable resources so as to ensure long-term national energy security and also to be a major driver of economic growth. Our capability to do so has already been proven. (See Figure 2)

It is the duty of all chambers of commerce and industrial associations and most importantly for the media to highlight this without delay, before our resources are handed over to foreigners just for the benefit of the few individuals or companies.

The recent court ruling on the Solar Project in Vavuniya exposes the mismanagement and misuse of powers by the two state institutions mandated to develop the sector, rather than obstructing it. The company concerned deserves praise for its perseverance and eventual success of the legal battle.

One may also recall that the CEB has blocked the development of all renewable energy projects from 2016, citing a lacuna in the Electricity Act of 2009, amended in 2013.  This did not deter them from allowing the Indian company to develop 500 MW wind and solar without any tender procedures.

Let us hope that the above judgement and some favourable changes seen in the management hierarchy of the CEB would lead to the much-desired paradigm shift in the mindset and actions of those mandated to serve the country and not individual interests.

Conclusion

We have ample indigenous renewable energy resources to meet all our energy needs, and surplus can be used to earn foreign exchange.

At a recent public lecture, the newly appointed General Manager of CEB, presented the essential elements that should be observed in a proper Energy Market…

Freedom of Choice

Economic Efficiency

Social Equity

Transparency

We hope that he will have the courage and strength to ensure that these principles are adopted in the CEB that he now heads.

I have confined my comments to the electricity sector. The bigger culprit, which is the transport energy, needs a separate analysis. Meanwhile, the readers are requested to refer my previous below.

https://www.bioenergysrilanka.lk/transport-policy-and-vision-for-the-future/[RJ5]

The Elephant in the Room – Transport Energy



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The challenge of being positive about SAARC

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The RCSS forum addressed by SAARC Secretary General Ambassador Md. Golam Sarwar in progress. (Pic courtesy RCSS)

It was a few years back that a former President of Sri Lanka took it on himself to pronounce SAARC ‘dead’. Since then there have been other sections of Sri Lankan opinion that have joined the critics of SAARC and taken the solemn stance that SAARC has indeed died what may be called a natural death.

Their fatalism is understandable. SAARC has failed to meet at heads of government or state level for the past several years to take the SAARC process notably forward. Regional cooperation has more or less been only an appealing idea. No substantive concrete projects have taken off to make the idea a hard reality. ‘Inner paralysis’ seems to be SAARC’s lot. Hence the fatalism in these circles.

However, being one of the worst cash-strapped regions of the world and a teemingly populated one with people virtually left to their devices, what choices do the ‘SAARC Eight’ have other than to try their best to band together and continue with their cooperation efforts, however small they may be?

There is no escaping the mounting debt trap for many of these countries and bankrupt Sri Lanka is a glaring example, but ‘throwing in the towel’ and abandoning themselves entirely to the diktats of the strongest economies and their agencies will prove a ‘living death’ for many countries in the SAARC fold.

The gains may be meagre but giving-up on SAARC cooperation in full would prove self-defeating for the organization and South Asia. Right now, the collective intention ought to be to salvage what the region could from the tenuous cooperative efforts. Moreover, such initiatives could go some distance to generate a degree of goodwill among the Eight and help in sustaining a dialogue process.

Given this backdrop it proved ‘a stich in time’ for the Regional Centre for Strategic Studies (RCSS), Colombo, to recently host the SAARC Secretary General Ambassador Md. Golam Sarwar to a round table discussion on the unifying potential of SAARC and its future possibilities, besides other related issue areas.

Held on June 24th and moderated by RCSS Executive Director and former ambassador Ravinatha Aryasinha, the forum brought together a vibrant, wide ranging audience comprising academicians, diplomats, senior public servants, civil society activists and many others. Following the presentation by Ambassador Golam Sarwar titled, ‘Reigniting SAARC: Achievements, Challenges and the Way Ahead’, a lively Q&A followed.

The above forum could be described as an act of lighting the proverbial ‘candle’ rather than ‘cursing the darkness.’ It surely is a ‘darkness’ that could be seen as daunting considering that the region’s pivotal powers, India and Pakistan, are failing to act in a spirit of accord but are engaged in bitter finger-pointing on a number of questions of vital importance to SAARC.

On the other hand, what is the rest of the region doing to bring the above sides together? It is disappointing that to date the rest of SAARC has failed to launch a major diplomatic drive to bring peace between the feuding regional heavyweights. It needs to act without delay and establish its earnestness and this effort would need to prove SAARC’s staying power in the unfolding months and even years.

In assessing SAARC’s seeming failure local opinion in particular has failed to factor in what could be described as weak leadership. Since Sheikh Mujibur Rahman of Bangladesh, the founding father of SAARC, the region has failed to produce a visionary leader who could advance the SAARC cause with charisma and drive.

Among other reasons, weak leadership accounts considerably for the faltering and stuttering status, as it were, of SAARC. Badly needed are leaders who could go the extra mile, think less of narrow national interests and work diligently towards the collective well being of the region but SAARC’s millions of ordinary people have been made to wait in vain for leaders of such stature. Instead, they have been burdened with politicians who seem to be relishing the apparently moribund state of SAARC.

Looking back, it could be said that it was the dynamic leadership factor that led to the launching of the Non-Aligned Movement and for its sustenance for a few decades. True, it could be seen in some quarters that NAM is no more, but as in the case of SAARC, the former too has been unfortunate to be burdened over the years with politicians who lack the vision and drive to unflaggingly advance the fortunes of the South. NAM and SAARC lack the dynamism and vision of leaders of the stature of Jawaharlal Nehru, for example, to give them the required guidance and intellectual depth.

The reasons are complex for there not being among us currently political leaders with the vision and the steadfast commitment to advance the legitimate interests of the South. However, it could be stated with conviction that the majority of Southern leaders have too easily caved in to the demands of the global North and its financial agencies.

These leaders have failed to see, for instance, that the largely market economy oriented Northern governments would not view with favour a centrist economic model that attaches priority to the interests of the dis-empowered publics of the South. This realization ought to have dawned on the current government in Sri Lanka, for instance, some while ago but it has no choice but to abide by IMF dictates since economic survival at present is unthinkable without the latter’s succour.

Accordingly for SAARC this should be the time for some soul-searching. Priority needs to be attached to ending the feuding between India and Pakistan since at present the material fortunes of the region hinge largely on these regional giants giving peaceful relations among them a try. This is no easy challenge to meet but some daring, visionary diplomacy needs to take hold among the rest of SAARC.

There is some sense in SAARC bringing the peoples of the region together through programs that address their best collective interests. A meeting of minds among SAARC nations could enable SAARC and its agencies to build a region-wide people’s movement for progressive political and economic change that could in turn lead to the region’s political leaders sensitizing themselves more to the neglected needs of their publics.

However, the time is ‘now’ for the initiation of these progressive changes and the voice of SAARC well wishers would need to drown out those of their critics.

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OPA seminar examines Sri Lanka’s economic recovery, resilience and growth pathways

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(L to R) Dr Achinthya Koswatte, Anushan Kapilan, Dr Harsha Aturupane, Bhanu Wijeyaratne, Vice President, OPA and moderator of the discussion, and Eng Chamil Edirimuny, General Secretary, OPA, at the head table.

A seminar, “Sri Lanka’s Economic Crossroads: Navigating Recovery, Resilience and Growth” was recently held by the Organisation of Professional Associations of Sri Lanka (OPA) at the OPA Auditorium, bringing together economists, OPA members, and professionals from diverse fields for an insightful discussion on Sri Lanka’s economic recovery and future growth prospects.

The event was held under the patronage of Jayantha Gallehewa, President of the OPA, and was jointly organised by the National Issues Committee (NIC) and the Seminars, Workshops and Programmes Committee of the OPA. The event reaffirmed the organisation’s commitment to advancing professional excellence, fostering insightful intellectual engagement, facilitating interdisciplinary knowledge exchange and creating a constructive platform for informed dialogue on issues of national importance.

The panel of speakers comprised Dr. Harsha Aturupane, Lead Economist and Programme Leader for Human Development at the World Bank for Sri Lanka and the Maldives; Dr. Achinthya Koswatta, Senior Lecturer in Economics at the Open University of Sri Lanka, and Anushan Kapilan, Lead Economist at Verité Research.

In his welcome address, the President of the OPA emphasised that Sri Lanka was at a critical juncture in its economic recovery journey where sustained reforms, effective implementation, and collective national commitment are essential to achieving long-term stability, resilience and inclusive growth. He noted that the country had experienced one of the most severe economic crises in its history with the economy contracting by 7.8 percent in 2022 and a further 11.5 percent in 2023, resulting in significant economic and social challenges.

Delivering his introductory remarks Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee, underscored the need to move beyond short-term economic stabilisation towards a comprehensive agenda of structural transformation. He observed that the economic crisis had revealed deep-rooted weaknesses within the economy, including persistent fiscal pressures, rising public debt, foreign exchange limitations, and insufficient diversification of the export base. He stressed that addressing these challenges through strategic reforms, institutional strengthening and long-term economic planning would be essential to establishing a more resilient and competitive economy.

While acknowledging recent positive developments, including improved inflation management, tourism recovery and signs of economic stabilisation, Wijeyaratne stressed the need to advance reforms aimed at strengthening fiscal discipline, enhancing productivity, improving competitiveness, developing human capital and reinforcing governance and institutional effectiveness.

He further highlighted the important role of professionals, businesses, academia and other stakeholders in contributing to evidence-based dialogue and supporting Sri Lanka’s journey towards a resilient, inclusive and sustainable economic future.

Delivering the keynote presentation, Dr. Harsha Aturupane provided a comprehensive assessment of Sri Lanka’s economic prospects within the broader context of global economic transformation. He argued that Sri Lanka functioned as a small open economy whose performance is significantly influenced by developments in the global marketplace. External factors could not be controlled, and the country must strengthen its domestic capacity and resilience to respond effectively to international economic shifts, he noted.

Tracing the evolution of global economic systems, Dr. Aturupane highlighted the transition from ideological divisions between state-controlled and market-oriented economies towards increasingly pragmatic approaches focused on growth, competitiveness and development. He noted that Sri Lanka’s own economic journey reflects a similar evolution, with contemporary policy debates now centred on practical solutions for sustainable economic progress.

The presentation also examined the transformative impact of globalisation. Dr. Aturupane observed that global economic integration had enabled several East Asian economies, including South Korea, Singapore, Taiwan and Hong Kong, to achieve remarkable economic advancement through export-led growth strategies. Sri Lanka similarly benefited from this process through the expansion of its apparel industry and increased integration into global value chains.

Turning to Sri Lanka’s recovery programme, Dr. Aturupane emphasised that the ongoing stabilisation process should be viewed as a national programme supported by the International Monetary Fund rather than solely as an IMF initiative. He observed that strong worker remittances, improved tourism earnings, enhanced government revenue mobilisation and prudent import management have contributed significantly to economic stabilisation.

Despite this progress, he cautioned that rebuilding foreign exchange reserves and meeting future debt obligations remain major challenges. He underscored the need to strengthen export performance, attract investment and generate sustainable foreign exchange earnings to ensure long-term economic resilience.

The discussion also focused on monetary stability, inflation management and exchange-rate policy. Dr. Aturupane stressed that maintaining price stability was fundamental to sustainable growth and household welfare, while sound monetary policy remains essential for preserving economic confidence.

Looking beyond stabilisation, he argued that Sri Lanka must transition towards a broader economic transformation agenda. Sustainable growth, he noted, will depend on expanding productive capacity through investment, technological advancement, innovation, skills development and structural reforms.

Among the key constraints identified was the high cost of energy, which continues to affect competitiveness and investment attractiveness. Dr. Aturupane emphasised the importance of improving efficiency and affordability within the energy sector to enhance Sri Lanka’s business environment.

He further highlighted the social dimensions of the crisis, noting the rise in poverty and economic vulnerability among households. Strengthening social protection systems and ensuring inclusive growth, he argued, must remain central components of the national development agenda.

Another critical challenge identified was Sri Lanka’s demographic transition. With an ageing population, outward migration and evolving labour market dynamics, the country is increasingly confronting labour shortages in several sectors. Dr. Aturupane suggested that greater automation, increased labour-force participation and strategic workforce planning would be necessary to address these emerging realities.

Concluding his presentation, he emphasised the need to improve governance, strengthen institutions, enhance competitiveness and create an enabling environment for private sector investment. Sri Lanka’s future success, he noted, will depend on its ability to move decisively beyond crisis management towards a development model founded on resilience, innovation, productivity and inclusive growth.

Dr. Achinthya Koswatta reiterated the importance of policy consistency and predictability in fostering investment and industrial development. She observed that frequent policy changes create uncertainty and discourage long-term investment decisions, whereas stable and coherent policy frameworks build confidence and support sustainable economic transformation.

Meanwhile, Anushan Kapilan highlighted the substantial progress achieved in restoring macroeconomic stability following the recent crisis. He noted significant improvements in fiscal performance, including increased government revenue, reduced reliance on debt financing and a historically low fiscal deficit.

He further observed that public debt levels are declining faster than anticipated, economic growth has exceeded expectations and inflation has been brought under control more rapidly than forecast. Nevertheless, he cautioned that the recovery remains uneven, particularly within the industrial sector and that many households have yet to experience a meaningful improvement in living standards.

The seminar was expertly coordinated by Eng. Chamil Edirimuni, Vice President of the OPA and Chairman of the Seminars, Workshops and Programmes Committee, while the technical moderation and interactive discussion session were facilitated by Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee.

The event was attended by Tisara De Silva, President-Elect of the OPA, Eng. Ravi Rupasinghe, General Secretary, Past Presidents, members of the Executive Council, representatives of the General Forum and professionals representing a wide range of disciplines.

The seminar concluded with a vibrant exchange of ideas and perspectives, reaffirming the importance of evidence-based policy dialogue, institutional collaboration and collective national commitment in advancing Sri Lanka’s economic recovery, resilience and sustainable growth.

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Her roots run deep in Sri Lanka

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Samantha Kay: Now based in the UK Samantha’s biggest passion is helping people, especially women, build confidence and believe in themselves Today, her focus is on radio, podcasting and coaching women Whenever she visits Sri Lanka, she says she loves spending time on the beautiful south coast, especially Hikkaduwa and Mirissa She released a song with 90s music icon Angie Brown, which reached No. 9 in the UK Club Charts

Yes, for UK-based presenter and artiste Samantha Kay, home is where the heart – and the roots – are. And her roots run deep in Sri Lanka.

In an exclusive interview with The Island, Samantha says “I’m proud to be Sri Lankan. My mum is from Kandy and my dad is from Colombo, so Sri Lanka has always held a very special place in my heart.

“Whenever I visit Sri Lanka, I love spending time on the beautiful south coast, especially Hikkaduwa and Mirissa. It’s somewhere I always feel connected to my roots and completely at peace.”

Now living in Bournemouth, on the south coast of England, where, she says, she is lucky to be close to some of the UK’s most beautiful beaches, including the iconic Sandbanks, Samantha has built a career that refuses to fit into one box.

She is a radio presenter, podcast host, singer-songwriter, personal trainer and life coach.

“I genuinely love the variety because every role allows me to connect with people and, hopefully, make a positive difference in someone’s day.”

Of course, music has taken her far.

One of her proudest achievements, she says, was releasing a song with 90s music icon Angie Brown, which reached No. 9 in the UK Club Charts.

She also reached the final stages of The X Factor and performed at Wembley Stadium in front of thousands.

Beyond music, Samantha competed in bikini bodybuilding across the UK, winning several titles. “It taught me discipline, resilience and self-belief,” she recalls.

Today, her focus is on radio, podcasting and coaching women. Her podcast encourages people to live life on their own terms rather than feeling pressured to follow society’s expectations.

Says Samantha: “Whether someone is single, changing careers, travelling solo or simply trying to find their purpose, I want them to know that it’s never too late to create a life that feels authentic. If you’ve ever felt like you don’t fit into the box, maybe you were never meant to.”

Samantha Kay also spent a year in Dubai, performing at five-star hotels, including FIVE, and coaching at the iconic outdoor gym on Palm Jumeirah.

“I taught strength and conditioning classes, and hosted wellness retreats, combining my passion for music, health and inspiring others.”

However, with family matters calling her back to the UK, she made the choice to return. “Family comes first,” she says.

Looking ahead, Samantha plans to grow her radio and podcast work, release more music, and expand her wellness retreats.

“My biggest passion is helping people, especially women, build confidence and believe in themselves,” she says.

“Wherever my career takes me, I hope to continue inspiring others to live with courage, kindness and authenticity, while never forgetting my Sri Lankan roots.”

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