The Hon. (Dr.) Upali Pannilage - Minister of Rural Development, Social Security and Community Empowerment

¶ 01 Hon. Deputy Chairperson, I am pleased to join the debate on the vital Energy sector. For 76 years, who managed this sector and created today’s crisis? The people know. The National People's Power Government treats energy security as paramount and has organized its plans toward stability by maximizing domestic sources—renewables. Our hydropower is fully tapped. Hence we must rapidly expand solar, wind, and biomass (dendro) to meet fuel and electricity needs.

¶ 02 We import petroleum, spending up to USD 4 billion annually depending on world prices, which strains our economy. Annual electricity demand exceeds 16,000 GWh and grows about 5 percent per year. Transport uses about 29.3 percent of energy, residential/commercial 32.3 percent, and industry 34.5 percent. We initiated EV charging centres at seven main locations and will complete three more in 2026, and gradually install chargers at fuel stations nationwide.

¶ 03 Past politicization damaged CPC—bloated staffing, mismanagement, and debt, followed by shifting CPC’s debt to the Treasury and then slapping a Rs. 50 levy on fuel while bringing in foreign distributors with take-or-pay style burdens. We are reversing this. We have begun modernizing Sapugaskanda refinery by mobilizing investment. We also commenced rehabilitation of our Trincomalee tank farm—24 of our tanks and 61 of others’—to build strategic stocks against price shocks.

¶ 04 On petrol prices: on 15 August 2024 Octane 92 was Rs. 344 and Octane 95 was Rs. 379. After adjustments around the election period, as of November, Octane 92 is Rs. 294 (down Rs. 50) and Octane 95 is down Rs. 44. We do not claim this is sufficient, but we manage institutions efficiently and pass on relief in line with global prices.

¶ 05 In electricity, previous administrations signed 20-year PPAs for solar at Rs. 27–37 per unit. We have corrected this so new solar is around Rs. 19–20. This year we targeted 2,000 MW of solar capacity and have added roughly 700 MW to the main grid. For wind, we have tendered about 150 MW, reducing prices from 8.26 US cents to around 3.77–4.65 cents—a reduction over 50 percent. Savings from renewables and petroleum reforms will be passed to the people in the shortest possible time. Thank you.