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The Darker Side and the Light at the end of the Energy Tunnel

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Eng Parakrama Jayasinghe

Those of us who were hoping for some sanity to emerge in the energy sector were given a severe jolt on Dec. 15 on reading the press release from the Presidential Secretariat, presumably after the Presidents meeting with the Ministers and senior officials of the energy sector. This stated that His Excellency had given instructions to develop action plans to achieve the target of 70% contribution to the electricity sector by 2030 using Hydro, Solar Wind and LNG resources.

This was indeed a shock, as this portends an attempt to constrain the space available for the future development of true renewable energy, thus scuttling the President’s declared target.

Fortunately, good sense has prevailed and an amended press release appeared next day without the reference to LNG as part of the 70% R E Target by 2030. It is also a matter of comfort to listen to the recordings of the above meeting, where the president was very clear in his instructions citing only Hydro, Wind and Solar as the renewable energy sources. But it is a matter of concern to us why Bio Energy which has none of the impediments of Solar and Wind, but has multiple spin off benefits, and has all the attributes of a source of firm power available 24/7 throughout the year, continues to be ignored. Fortunately there is an interest to accelerate the implementation of the many stalled renewable energy projects, thus setting the country on the correct path.

 

Role and Acceptability of LNG

Natural Gas is certainly not a renewable energy resource. But is it a “Clean” source of energy? Certainly it is a lot “Cleaner” than both coal and oil and is free from some most toxic components such as sulfur, lead, mercury and a plethora of heavy metals and radioactive nucleoids present in coal. But it will certainly emit

* 50% of carbon emissions compared to Coal not zero carbon as in case of Solar and Wind

* Significant amounts of Oxides of Nitrogen

* Potential fugitive emissions of Methane prior to combustion which is 23 time more potent than Carbon Dioxide.

In Sri Lanka’s context, what is even more important is the fact it is an imported resource subject to the vagaries of price fluctuations and the parity rate of exchange, continuing to compromise our energy security. LNG is the lesser evil, and in the light of the CEBs reluctance accept the vast strides in technology which has made it possible for both wind and solar to be upgraded to firm sources of electricity generation, and due to the lack of any significant additions to the generation capacity for over five years, limited use of Natural Gas may have to be viewed as an interim option.

Questions Needing Urgent Answers

However, a very severe uncertainty of the source and the means of supplying the LNG necessary to operate the 300 MW LNG plant remains unresolved, and appears to be ignored, according to the information available to the general public. Sri Lanka escaped a potential disaster by not proceeding with an unsolicited proposal to set up a Floating Storage and Re-gasification Unit (FSRU) and a contract to supply LNG for 20 years on terms totally disadvantageous to us. But the million dollar questions remains unanswered:

1. What is the means of supplying LNG to the proposed 300 MW power plant at Kerawalapitiya?

2. Under whose control will such supplies, presumably from an FSRU operate, and which is the location chosen?

3. If the gas supplies are not available by the time the power plant is commissioned, will the plant be operated with diesel or some other oil and for how long?

4. What will be the extra cost of using such alternate fuels and who will bear the extra cost above the tendered price of Rs 14.85 per unit?

5. In the absence of any plans of resolving such issues, is the government still pursuing options for more LNG plants with India and Japan and now with the USA?

With such a plethora of unanswered questions, even assuming that Sri Lanka will be obliged to proceed with the first 300 MW LNG plant, at least as a means of avoiding any more ruinous emergency power options, isn’t it time to take a very close look at the need or the justification for any further use of LNG ?

As usual Sri Lanka has missed the bus in this instance too. If the first LNG plant was initiated and a viable means of supplying the LNG was initiated in 2016, we could have avoided depending on emergency power for at least two years up to now, and it would have improved the space for greater level of integration of Solar and Wind to the national grid and the consequent reduction of the huge losses incurred by the CEB annually.

 

Hope for the Future

But on a happier note, the world did not stand still, and technologies are now available to iron out variability and seasonal and diurnal nature of wind and solar energy . For example the State Minister is keen to launch the 100 MW Solar park at Siyambalanduwa and a further 100 MW of solar and 150 MW of wind power in Pooneryn very early. It is very likely that all these projects will generate electricity at costs less than Rs 10.00 per unit. Therefore the addition of adequate battery storage is feasible to at least serve the peak loads as well as to make them sources of firm power. The resultant cost may not surpass the Rs 14.85 per unit expected from the LNG plant.

 

A place for Prosumers and Electricity as a National Industry

In addition the innovative program of State Minister Duminda Dissanayake to provide 5 kW rooftop solar systems to 100,000 Samurdhi recipients without burdening the treasury is a major paradigm shift in the electricity sector whereby the smallest level of consumer becomes a generator of electricity for his own consumption with a significant surplus and thus becomes a PROSUMER whereby the Electricity Industry becomes a contributor to the GDP instead of being a mere facility for other sectors to grow. With a total of 1.6 Million Samurdhi recipients, the future potential for growth of this program is immense

As a further step in this direction the program to install micro Solar Parks of 100 kW linked to 10,000 distribution transformers will make the Electricity generation a national industry adding further to the GDP. These two programs would add 1,500 MW of Solar PV and create vast employment opportunities.

We earnestly request Minster Dulles Alahapperuma and State Minister Duminda Dissanayake to very seriously evaluate this possibility. This will enable the president to plan for the next goal of 100 % RE

E Mail parajayasingle@gmail.com



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SL’s economic outlook for 2026 being shaped by M-E conflict

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The top table at the ADB media briefing

Sri Lanka’s economic growth is expected to moderate to 4.0% in 2026 and climb to 4.2% in 2027, following two consecutive years of strong 5.0% growth.

This forecast is based on an early stabilization scenario for the Middle East conflict, according to the Asian Development Outlook (ADO) April 2026, Asian Development Bank’s (ADB) flagship economic publication. Sri Lanka’s recovery held firm in 2025 despite the late-year disruption of Cyclone Ditwah. Private consumption surged amid low inflation and easing interest rates, while remittances hit a record high, as did the primary budget surplus. The current account posted a third consecutive surplus, and official reserves climbed to their strongest level in years.

The outlook for 2026 is increasingly shaped by the conflict in the Middle East, even as post-Ditwah reconstruction spending provides some support for growth. Private consumption will remain the main growth driver, though higher inflation will temper household spending power, and private investment is expected to recover only gradually amid heightened uncertainty.

Higher energy costs, potentially weaker remittance inflows, and disruptions to trade and tourism will weigh on household incomes and external buffers and drag on economic growth. Inflation is projected to accelerate sharply to 5.2% in 2026, driven largely by the Middle East conflict.

“Sri Lanka has come a long way since the recent economic crisis, and its economic performance over the last two years is a major achievement,” said ADB Country Director for Sri Lanka Shannon Cowlin. “However, the risks ahead are real and significant. This is not the moment to ease up on reforms. Fiscal discipline must be maintained and resilience must be strengthened against the external shocks that will keep testing this economy. At the same time, scaling up and executing public investment will be essential to sustaining the recovery.”

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.(ADB)

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Hameedia unveils “Threads of Culture”

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This Avurudu season, Hameedia introduces its latest campaign, “Threads of Culture,” celebrating the traditions that connect generations while embracing a more conscious and forward-thinking approach to fashion.

Rooted in the spirit of Sinhala and Hindu New Year, the campaign highlights the importance of preserving culture while evolving with modern values. This year, Hameedia places a strong emphasis on ethical and sustainable fashion, encouraging customers to move away from fast and imitation fashion towards quality, authenticity, and responsible choices.

As part of this shift, Hameedia presents a refreshed festive collection crafted using lightweight cotton and linen fabrics, designed specifically for Sri Lanka’s climate. The collection focuses on breathability, comfort, and timeless style, offering customers clothing that is both practical and refined for the season.

Commenting on the campaign, Fouzul Hameed, Managing Director of Hameedia, stated, “Avurudu is a time of renewal, reflection, and meaningful connection. With ‘Threads of Culture,’ we wanted to go beyond celebration and inspire a shift in mindset, encouraging Sri Lankans to choose authenticity over imitation, quality over quantity, and responsibility over convenience. As a homegrown brand, we take pride in upholding craftsmanship and ethical practices, and we believe fashion should not only look good but also do good.”

Marking a key milestone in its expansion, Hameedia is also set to open its newest outlet in Galle, further strengthening its presence across the island and making its signature craftsmanship more accessible to customers in the southern region.

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Colombo Shopping Festival 2026 declared open for 5 days of Avurudu Shopping

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The much-anticipated 41st Edition of the Colombo Shopping Festival (CSF) – Avurudu Fair was ceremonially declared open at the BMICH Exhibition Centre, marking the beginning of five exciting days of festive shopping in celebration of the Sinhala and Tamil New Year.

The ceremonial opening commenced with the traditional lighting of the oil lamp on 8th April 2026, in the presence of guests, industry leaders, and invitees. Organized by Aitken Spence Conventions and Exhibitions, the event continues to reinforce its position as one of Sri Lanka’s premier consumer exhibitions.

Running from 8th to 12th April 2026, from 10:00 a.m. to 10:00 p.m. daily, the Colombo Shopping Festival brings together over 200+ Micro, Small, and Medium Enterprises (MSMEs) from across the island, offering a vibrant marketplace that supports local businesses while delivering exceptional value to shoppers.

This year’s Avurudu Fair promises an unmatched retail experience, featuring a wide range of products including fashion, lifestyle, homeware, beauty, and more. Visitors can shop top brands such as Boss, EL Holdings, Vantage, Miniso, Governor Shirts, Edge Casual, Avirate, Cetaphil, Phoenix, Rite Shu and many more top brands, alongside a diverse selection of Indian stalls offering exclusive collections at massive discounts.

The festival creates the perfect opportunity for families and shoppers to prepare for the New Year with unbeatable deals, festive offers, and a lively atmosphere filled with seasonal excitement.

With its strong legacy and continued commitment to empowering local entrepreneurs, the Colombo Shopping Festival stands as a key highlight in Sri Lanka’s event calendar—bringing together commerce, culture, and celebration under one roof.

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