The Hon. Ravi Karunanayake

¶ 01 Thank you, Hon. Presiding Member.

¶ 02 We can use this opportunity to shift to sources cheaper than fuel. Over the next decade, thermal will not produce a unit for under Rs. 60. If we strengthen renewables, we can stabilize costs. Do not bake a fanciful 7 percent cost of capital into the formulas; that is unrealistic for Sri Lanka. Firm generation from gas turbines runs 24/7; wind can be firmed with proper integration and balancing. When you pay Rs. 27 and then try to cut to Rs. 19 or Rs. 23, while diesel-based units cost around Rs. 150 per unit at peak, problems arise. With imported fuels, for every Rs. 100 we pay, Rs. 83 leaves to the Middle East. With renewables we can generate at Rs. 28–30 per unit domestically, 100 percent local value retention, enabling local entrepreneurs to invest.

¶ 03 Further, with battery-operated energy systems and a 20-year life cycle, the levelized cost could be about Rs. 55 per unit compared to around Rs. 70 for oil-fired generation, yielding savings. If you want to reduce tariffs, do it now. Hydro is seasonal.