Hon. Ravi Karunanayake

¶ 01 Hon. Presiding Member, I consider it a privilege to speak on electricity and petroleum—vital sectors that also determine our path to smart cities and modernization. Prices of electricity and fuel are critical for production and competitive selling.

¶ 02 After bankruptcy, the CEB made a loss of Rs. 377 billion; in 2024 it made a profit of Rs. 211 billion, with Rs. 177 billion prior losses remaining. CPC lost Rs. 352 billion; today it has a profit of Rs. 115 billion. Sri Lanka now has one of the highest electricity tariffs in Asia, but this has instilled fiscal discipline. Due to the bold approach of President Ranil Wickremesinghe, Kanchana Wijesekera and D.V. Chanaka, there is now financial discipline. While some still talk of 76 years, I ask: how do we take the country forward?

¶ 03 President J.R. Jayewardene launched Accelerated Mahaweli: Victoria, Kotmale, Randenigala, Maduru Oya, Rantembe; earlier Samanalawewa. In 2015, as Finance Minister, I opened Moragahakanda; also Uma Oya proceeded. All this strengthened electricity. With 5 per cent growth targeted and working with the IMF, we are now on a path. This year’s GDP is expected at Rs. 33 trillion; 2026 Rs. 38 trillion; 2027 Rs. 44 trillion. Power and petroleum are essential to that.

¶ 04 To the Minister: the world is moving—India is starting new power lines with Singapore and the UAE. Imagination is the beginning of creation. We are happy that President Anura Dissanayake has moved on India–Sri Lanka grid connectivity—initiated in 2018–2019 when I was Minister under Ranil. It must be expedited. India is moving into nuclear-powered hydrogen; they will export at 3–5 US cents per unit. Our own Minister Anil Jayanta said: if we buy Adani’s wind at 8 cents, and India sells at 3.5 cents, there is an issue; they can export at 5–6 cents. Therefore grid connectivity is essential.

¶ 05 On oil pipelines: from India to Mannar, then to Trincomalee, using the 99 tanks—this is necessary. I have a photograph of the then PM with the President of Singapore signing an agreement; countries are moving ahead. When India goes ahead, we must too.

¶ 06 To the Minister: about June 27. Power sector reforms—bring the new Bill. Only a few months remain. You have the intent, but I feel officials are delaying. Be bold. The reforms envisage changes in transmission and distribution. If IPPs are good for generation, why not for transmission and distribution too? The capital base is the issue. With a 13 per cent cap on primary expenditure to GDP, you cannot allocate much to the sector over five years. Therefore, consider models that allow private participation in distribution and transmission—or at least do not waste scarce capital.

¶ 07 India sells power to Bangladesh at 7 cents, and to Nepal and others at similar rates. Our current unit cost is Rs. 23–24; in two months, if hydro falls, it may rise to around Rs. 40. We need contingency steps. Now hydro is Rs. 2–3 per unit; renewables Rs. 12–30 (US 5–10 cents); coal Rs. 25–30; LNG Rs. 35–40; oil/IPPs Rs. 70–80. If we pursue PPPs for generation, we must consider all factors.

¶ 08 On LNG: the PUCSL has rejected your generation plan. Then how will you proceed? Sobadanavi’s 350 MW will be commissioned in April. As I understand, about 200 MW thermal and the rest combined cycle. But no clarity on LNG starting. An FSRU takes 2–3 years; without LNG in time, Sobadanavi will cost around Rs. 70 per unit for 200 MW on oil. I also ask why we are not doing carbon trading. When I was Minister, with Secretary Batagoda, we approved moving forward. Now, with about USD 5 per ton available, and with 3,500–4,000 MW of installed renewable capacity in the region, we could earn USD 100 million (Rs. 30 billion). PUCSL also says: do not discourage renewables; adopt BESS.

¶ 09 We must act with a forward plan. Selling at Rs. 23 per unit now will need change in two months due to IMF parameters. I raised this before. With 5 per cent growth, the biggest bottleneck is electricity—e.g., clay tiles now imported from India due to power constraints. Demand rises 12 per cent while supply additions are 2–3 per cent. If you want 5 per cent growth, how will you supply power? If you fix generation, transmission will be the next bottleneck. Do not discourage renewables.

¶ 10 Local producers survived due to 2015 measures I introduced as Finance Minister, with Hon. Ajith P. Perera as State Minister. That yielded great benefits. Local content is near 100 per cent for certain technologies. Do not touch their favourable tariffs. If coal power costs Rs. 35 per unit and oil IPPs Rs. 70–75, why undermine lower-cost options? Keep tariffs that encourage domestic producers.

¶ 11 You have two more minutes.

¶ 12 Thank you; I will conclude in two or three minutes.

¶ 13 To the Minister: on Panadura’s “water battery”—good idea, but five to six years to implement. Do not apply temporary plasters. Pumped storage has been discussed for 10–15 years; even with enabling laws, practical reality was lacking; it has a 50-year life. Better to pair with battery storage. At 2–3 US cents marginal for curtailed energy stored, system contribution can reach 5–8 per cent from renewables reliably. That would be a significant contribution you deliver to Sri Lanka. You must take political decisions. The biggest issue is decisions being blamed on monkeys, cats, or peacocks. Do not do that—take the necessary decisions.