Business

‘The devil is in the details’ in electricity sector reforms

Published

1 year ago

2025/02/11

Thilina Walpola

Prof. Asanka Rodrigo: ‘Precision needed in reforms

By Ifham Nizam

Sri Lanka’s electricity sector is undergoing a seismic transformation with the proposed amendments in the Electricity Act No. 36 of 2024. With the primary aim of restructuring the Ceylon Electricity Board (CEB), these reforms promise to reshape the country’s energy landscape. But experts, including Professor Asanka Rodrigo from the Department of Electrical Engineering at the University of Moratuwa, caution that while the reforms hold potential, they could also lead to unintended consequences if not executed with clarity and precision.

The Institution of Engineers, Sri Lanka (IESL) initiated an open dialogue on the Ministry of Energy’s proposed amendments to the Electricity Act. Aiming to engage diverse stakeholders, the workshop titled ‘Power Sector Reforms: IESL Perspective’, was held last Friday at the IESL auditorium.

Rodrigo said that the proposed changes seek to restructure the current CEB into 12 independent entities, including four generation companies, a 100% government-owned National System Operator (NSO), a National Transmission and Network Service (NTNS) company, and four independent distribution companies. This restructuring intends to pave the way for a competitive wholesale electricity market within five years. However, despite the Act’s ambitious goals, the transition remains murky, with critics arguing that it lacks the comprehensive guidelines needed to ensure smooth implementation.

Rodrigo, an authority on electrical engineering, acknowledges the need for reform but emphasizes the importance of strategic planning. “The reform is undoubtedly necessary to foster competition and improve operational efficiency. But the devil is in the details, and right now, we lack the specifics on how to achieve these lofty objectives,” he states. One of his key concerns is the weak clauses within the Act regarding the transformation process, which could potentially undermine the very competition the reforms aim to establish.

In addition to restructuring, the Act also calls for the formation of a National Electricity Advisory Council tasked with advising the minister on energy policy. However, Rodrigo warns that certain provisions may allow for direct ministerial interference in regulatory affairs, raising concerns about the independence of the sector. “While governance should certainly be accountable, excessive ministerial control over the National System Operator is troubling. The sector needs an independent regulator to ensure impartiality and the long-term sustainability of the market,” he says.

The complexities deepen with the concept paper’s more intricate proposal, which suggests creating 14 state-owned companies instead of the initial 12. These include holding companies for generation, transmission, and distribution, along with a company for the CEB fund. Yet, questions remain about the necessity of additional holding companies that do not engage in core electricity sector operations. “Introducing more layers of bureaucracy without clear functions risks complicating the system instead of simplifying it,” he notes. “We need to ensure that each new entity has a distinct role and contributes to sector efficiency rather than creating redundancy.”

Perhaps one of the most contentious proposals is the reduction of the standardized power purchase agreement (SPPA) limit to plants not exceeding 1 MW, down from the current 10 MW. This decision has raised alarms among renewable energy advocates, who fear it will hinder the integration of solar, wind, and other renewable sources into the grid. “Renewable energy investments require stability and long-term planning, says Rodrigo. “By reducing the SPPA limit too drastically, we risk stalling progress and discouraging future investments in renewable energy.”

Rodrigo believes that the country must maintain a balanced approach to renewable energy integration. “While the reduction of the SPPA limit is intended to support smaller-scale projects, it should not come at the expense of larger, more impactful renewable energy investments, he advises. A gradual approach to reducing the SPPA limit, with clear incentives for renewable energy developers, would create a more favorable environment for long-term investment.

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Business

Sri Lanka Climate Summit flags need to ‘mainstream climate action into country’s growth story’

Published

9 hours ago

2026/06/10

Sahan Weerasooriya

CCC Chairman Krishan Balendra (L) and Minister Dr. Dhammika Patabendi at the summit.

Sri Lanka has reached a critical juncture where climate action must evolve from policy discussions into tangible investments capable of driving economic growth, strengthening competitiveness and attracting international capital, speakers at the second Sri Lanka Climate Summit 2026 organised by the Ceylon Chamber of Commerce said.

Held under the theme “From Risk to Opportunity: Mainstreaming Climate Action into Sri Lanka’s Growth Story,” the summit at Taj Samudra yesterday brought together policymakers, multilateral agencies, financiers and private sector leaders to assess whether Sri Lanka is climate-ready for investment and how climate resilience can be transformed into an economic advantage.

Delivering the welcome address, Chairman of the Ceylon Chamber of Commerce, Krishan Balendra, said climate action could no longer be treated as a separate sustainability agenda.

“As Sri Lanka enters its next phase of economic growth and recovery, climate action must become part of our competitiveness agenda, our investment agenda and ultimately our national growth story, Balendra said.

He noted that since the inaugural Climate Summit in 2024, the Chamber had moved beyond advocacy to practical implementation through initiatives promoting Environmental, Social and Governance (ESG) practices, climate disclosures, green innovation and public-private collaboration.

The Chamber has also established a public-private working group jointly led by the Ministry of Environment and the Chamber to support implementation of Sri Lanka’s Nationally Determined Contributions (NDCs) and emerging carbon market frameworks.

Environment Minister Dr. Dhammika Patabendi, delivering the keynote address titled “Sri Lanka’s Climate State of the Nation 2026, said the government was positioning climate resilience as a cornerstone of economic transformation.

“We are working directly with the Chamber to transform global climate risks into Sri Lanka’s greatest competitive advantages, the minister said.

He highlighted landmark amendments to the National Environment Act aimed at modernising environmental governance while providing greater certainty to investors.

According to Patabendi, the reforms would shift environmental compliance from a reactive and punitive model to a proactive framework that provides businesses with greater operational clarity before projects commence.

The minister also stressed that environmental compliance is increasingly becoming a prerequisite for access to premium export markets.

“Enhanced environmental standards act as an economic shield for our exporters, validating the ‘Made in Sri Lanka’ brand as an ethically secure, low-carbon choice, he said.

Patabendi reaffirmed Sri Lanka’s comm

itment to achieving 70 percent renewable energy generation by 2030 and carbon neutrality by 2050, while highlighting significant opportunities in wind energy development, including an estimated 56 gigawatts of offshore wind potential.

Vimlendra Sharan, FAO Representative for Sri Lanka and the Maldives, described Sri Lanka as a country that is simultaneously “climate vulnerable and climate ambitious.”

“The real question is whether Sri Lanka is climate investment ready. That journey has only just begun, Sharan observed.

He argued that climate readiness required transforming vulnerabilities and ambitions into structured, financeable and scalable investments.

One of the country’s biggest challenges, according to Sharan, is the limited pipeline of bankable climate projects.

“The major gap is the lack of investment-ready projects. We also need stronger project preparation capacity, more data and better evidence to unlock larger volumes of climate finance, he said.

Speakers agreed that climate resilience is no longer merely an environmental issue but an economic imperative affecting trade, investment flows, supply chain access and long-term growth prospects.

By Ifham Nizam

Business

Australia-based company seeking to provide sustainable energy solutions to SL

Published

9 hours ago

2026/06/10

Sahan Weerasooriya

Isura Yapa (R) and Ludovico Finotto at the meeting in Colombo

A leading Australia-based sustainable energy solutions company, ‘365 Future Energy’, is now exploring possibilities to enter Sri Lanka to provide sustainable energy solutions to Sri Lanka at affordable prices.

‘365 Future Energy’ CEO, Isuru Yapa, together with internationally recognized energy technology entrepreneur Ludovico Finotto,visited Sri Lanka this week.

” If we could set up this plant here it would benefit Sri Lanka because it could store sustainable energy to stabilise the national grid, supply energy at an affordable operational cost and manage the energy supply system in a more stable manner, Ludovico Finotto, founder and CEO of ‘QiOn Technologies’ a globally recognized innovator in the energy, automotive and high-performance electronics sectors, said.

With over 18 years of international experience, Finotto has played a leading role in advanced developments related to electric mobility, energy storage, charging infrastructure, hydrogen technologies, marine electrification and smart energy systems in more than 24 countries.

Speaking to the Island Financial Review he said that the purpose of this strategic visit is to explore sustainable energy solutions, evaluate emerging opportunities within Sri Lanka’s energy sector and identify potential investment and technology partnerships that can contribute to the country’s future energy transformation.

‘365 Future Energy’ is focused on delivering innovative and environmentally responsible energy solutions, supporting the global transition toward renewable and sustainable power infrastructure. Through this visit, the company aims to better understand Sri Lanka’s growing energy demands and assess opportunities for collaboration in renewable energy technologies, energy storage systems, EV charging infrastructure and next-generation sustainable energy developments.

‘365 Future Energy’ believes Sri Lanka holds strong potential for future-focused sustainable infrastructure projects and clean energy investments. The company’s leadership team will engage with local stakeholders, businesses, and industry representatives during the visit to discuss opportunities for innovation, energy efficiency, and long-term sustainable growth, company sources said.

By Hiran H Senewiratne

Business

Celebrating Vesak, serendib Flour Mills Serves community through Dansala at Orugodawatta

Published

9 hours ago

2026/06/10

Sahan Weerasooriya

Celebrating the spirit of Vesak, Serendib Flour Mills served the community through a Tea Bun Dansala and Plain Tea Dansala held near the Orugodawatta Bridge on 29 May 2026, distributing 12,500 buns and 12,500 cups of tea to devotees and members of the public.

The Dansala commenced with the blessings and presence of a venerable monk, reflecting the values of compassion, generosity and service that define Vesak. The initiative was carried out through the collective commitment of the Serendib Flour Mills team, who came together to serve the community and support those observing the sacred occasion.

Through this initiative, Serendib Flour Mills reinforced its belief that nourishment extends beyond food, living in the kindness shared, the relationships built and the communities uplifted. Guided by its purpose of “Nourishing the Nation,” the company remains committed to creating nourished futures through meaningful acts of service and care.