The Hon. Hesha Withanage Ankumbura Arachchi

¶ 01 Hon. Presiding Member, thank you for the opportunity to speak on a Budget Head the public is watching closely. Water and electricity, our basic needs, have faced serious issues; trust in uninterrupted supply remains shaken, as does confidence in orderly access to diesel and petrol. People want to know this Ministry’s policies and what steps will be taken when crises arise.

¶ 02 As Hon. Dayasiri Jayasekara said, when problems arise, the responsible subject Minister must answer in Parliament; otherwise the dignity of the Cabinet office is diminished. Recently, after a major power outage, Hon. Bimal Rathnayake responded, but the subject Minister did not. The public deserves answers.

¶ 03 I cite a statement attributed to the Hambantota District Coordinating Committee Chairman, Hon. Nihal Galappaththi, that “no solar projects will be allowed in Hambantota; existing ones will be stopped.” To my knowledge, he has no authority to make such a declaration; such decisions must come from the Cabinet Minister. Investors observe our policy signals. First, some boasted “we sent Adani away,” and now say “we will bring Adani back in balance.” Investors will study our policy consistency before committing capital.

¶ 04 In 2022 when people suffered 10–12 hour blackouts, the Government scrambled to get power from anywhere. We have long managed with hydro, fuel oil, and coal, but failed to move beyond to a modern mix. The Sri Lanka Sustainable Energy Authority was set up under Act No. 35 of 2007, yet implementation lagged. After the 2021 crisis, a Renewable Energy Resource Development Plan was presented by the SLSEA—whoever gets political credit, it is a serious plan the sector should read.

¶ 05 Now, however, solar projects are reportedly being halted. Minister Wasantha Samarasinghe acknowledged this has become a prime topic. Why have we come to this? If the goal is the lowest possible tariff, then in addition to lowering solar tariffs, the Government should commit to ending reliance on emergency diesel generation, with a roadmap.

¶ 06 Near my home in Embilipitiya there is a private power plant. If such plants generate in the daytime and feed the grid, we should be pushing solar to the maximum during the day. If not happening, there is either a management failure or a “mafia,” as many in the country believe—or conflicts of interest.

¶ 07 Following the 2021 crisis, by Gazette 2246/24 of 24 September 2022, expressions of interest were called for RE projects, many investors applied, and 49 were selected and are progressing. If that selection was wrong, say so publicly and attribute it to the then Government. Do not let past errors be forgotten. If there are major issues, explain them.

¶ 08 CEB officers met and set tariffs and moved projects forward. In the absence of a clear long-term plan, projects are now being abruptly halted—particularly those adding solar to the grid. Hon. Ajith P. Perera will recall that in a past incident the CEB had to pay large compensation after an FR case; ultimately, taxpayers and bill-payers bear that cost. Can the Minister guarantee that cancelling procurements now will not trigger compensation that hurts consumers? If you can, then the changes may be justified.

¶ 09 Currently 49 companies are implementing projects; to start, they must invest tens of millions. In India, basic facilitation is often provided; here, developers must do everything up to the grid-connection point. If, after progressing, they are suddenly shown a red light, will investors keep coming? Re-tendering after others have already secured land raises fairness concerns—will the original developer lose out while another takes over? This discourages investment.

¶ 10 I also caution about “advisers” with conflicts—past examples in telecom showed how non-salaried advisers protected incumbents and blocked competition. Is something similar happening here? If we cancel major renewable projects, the result is fewer investors and lost opportunities to bring down grid costs.

¶ 11 Finally, on rooftop solar: if tariffs are reduced fairly, ensure loan-backed consumers can still service their debts. Do not discourage households while propping up a diesel generation lobby. Tenders not being implemented properly, and emergency plant owners benefitting, must end. I hope the Minister will have the strength to stop this corruption.

¶ 12 Thank you.