Hon. Kumara Jayakody - Minister of Energy

¶ 01 Hon. Chairman, first I thank Hon. Ajith P. Perera for understanding some of our work. Let us go beyond politics and include technology; much that you dreamt of and could not do then, we have started and are doing now. This is about developing the country’s energy sector, not mere politics. You can closely observe where we are going.

¶ 02 Presenting the Estimates of the Ministry of Energy for 2026, I note that we began safeguarding the CEB for future generations by amending the CEB Act last month—against plans to split into 12 companies for sale and to send 12,000 employees home with Cabinet approval. In this reform, I, as Minister, intervened to secure employee rights. After successful discussions with trade unions—there are 42 unions; 25 main unions—most employees now agree, and we are in the final phase.

¶ 03 The National Electricity Policy, including modern HR plans, institutional strategies and a fair pricing framework, is ready and will soon go for legal and then public consultation before Cabinet. By end-January, the sector will be operated by four fully state-owned entities: Generation, Transmission, Distribution, and a System Operator. Many public servants, policy committee members, directors, local and foreign advisors, and Sri Lankan experts abroad are voluntarily assisting—our gratitude to all.

¶ 04 I also especially thank CEB trade unions. Understanding the purpose and direction at the last moment, they ceased unnecessary industrial action and now cooperate irrespective of party lines.

¶ 05 There are two opposing camps. One asks how to bring investment without selling assets; the other asks how bills reduce when six entities replace one. Initially, institutional and O&M costs may temporarily rise, but the impact on the bill will be less than one per cent because institutional, transmission, distribution and system operation together are under 20 per cent of the bill; over 80 per cent is generation cost. The current informal synergies that obscure true generation cost will be opened up by reform, bringing transparency to diagnose and treat the real disease. We will open the sector to private investment through PPPs—no sale of people’s assets—improving transparency and competition, thereby progressively reducing consumer tariffs.

¶ 06 We are accused of fencing off renewables for unscrupulous businessmen. In September 2024 we pledged to add 2,000 MW of solar in five years via rooftops alone. By October 2025, 800 MW have been added—up from 533 MW in 2024—largely rooftop and some ground-mounted. By year-end we may reach 900–1,000 MW. Over the next four years we will complete 1,200 MW—300 MW per year—fulfilling our policy. Our distinction is buying at the right price—fair to investors and the public.

¶ 07 We will procure all future energy via competitive processes, enabling large and small investors to participate through an online window. We have tendered two 50 MW wind projects at Silavathurai and Mullikulam; one price is USD cents 3.77 per kWh.

¶ 08 To those repeating one lie Goebbels-style and to self-styled analysts, we invite you to point out our real shortcomings and stop baseless accusations.

¶ 09 Due to low demand early this year and expected early next year alongside high solar output, system instability is possible. Our battery tender for 160 MW concluded with a record 153 bids. Recharge cost is around Rs. 17 per unit; evaluation is ongoing. We will use batteries primarily for system balancing.

¶ 10 With ADB support we are rolling out smart meters and a smart grid. Two million smart meters will be installed; by March 2026, 650 feeders and 2,000 meters will be operational, with necessary data forecasting and operations.

¶ 11 Under the President’s leadership and guidance of honest, capable experts, we are preparing for a new leap in the power sector next year. We seek everyone’s positive cooperation.

¶ 12 On petroleum: the Ceylon Petroleum Corporation (CPC) recorded Rs. 32 billion profit by October; despite reduced income in some areas, other segments improved. All taxes are paid on time; Rs. 5 billion has been remitted to the Treasury from profits. We pass on global price reductions to the public whenever possible. Contrary to claims that the State cannot run business, CPC together with the Ministry of Energy is setting an example.

¶ 13 On the refinery modernization, we called for Expressions of Interest amid skepticism; 20 international entities have expressed interest. We are proceeding to evaluations and RFPs.

¶ 14 At Trincomalee, CPC owns 24 tanks. Out of 99 tanks—14 were practically given away 100-to-1 by your Government. Of the remaining 85, 61 are under a CPC–IOC joint venture. We have 24 left; we have started rehabilitating them. Two have been completed; two more are underway. We have Cabinet approval and are procuring a pipeline from the Port. We will meet this need—another of your “dreams,” I might add.

¶ 15 Aviation fuel services are being rapidly improved; with prices reduced to Singapore/Dubai levels, 13 international aviation fuel supply contracts have been signed. We also expect to develop bunkering.

¶ 16 This year, the kerosene business has grown by 55 per cent; we supply the fisheries sector at the lowest prices. We obtained Cabinet approval to reconstruct the over 80-year-old pipeline from Colombo Port to Kolonnawa. We opened tenders on the 17th of this month for a 21-km pipeline from Muthurajawela to Katunayake to supply aviation fuel.

¶ 17 We are rationalizing staffing scientifically, reducing politically-influenced excess cadres, with KPIs aligned to our policy goals.

¶ 18 Finally, the Presidential Special Investigation Committee (CIABOC referral): 18 trade union members were released from duty up to 17 days and unlawfully paid Rs. 1,067,000 in salaries, overtime and allowances for union promotion activities. This has been referred to the Commission to Investigate Allegations of Bribery or Corruption for further inquiry.

¶ 19 Thank you.