The Hon. (Mrs.) Geetha Herath, Attorney-at-Law

¶ 01 Hon. Presiding Member, thank you for the opportunity to speak on the Vote of the Ministry of Power and Energy during the Budget debate.

¶ 02 The energy sector needs a transformative change suited to our country. In the past period, we amended the Sri Lanka Electricity Act and effected several reforms.

¶ 03 Hydropower remains our primary source, but we are steadily shifting to renewables like solar and wind, which is positive. As a Government, we are incentivizing that transition.

¶ 04 Within the past year, we marked significant steps. The Ministry is responsible for coherent sector policy, issuing policy directives for regulators such as the Public Utilities Commission of Sri Lanka and the Sri Lanka Atomic Energy Regulatory Council, and supervising state entities in electricity, petroleum, renewables, and nuclear.

¶ 05 Our mandate is to ensure a secure and reliable energy supply for economic growth and social development. The 2024 Electricity Act No. 36 was amended in 2025 to enable long-overdue structural change, while safeguarding national interests, employees’ rights, and consumer protection.

¶ 06 Through these amendments, the Ceylon Electricity Board’s functions are unbundled into four companies for generation, transmission, distribution, and system operation. This is not privatization; ownership remains fully with the State.

¶ 07 Our National Energy Policy also targets competitive, efficient supply for consumers by introducing multiple electricity markets and expanding private investment opportunities, within a state-owned framework.

¶ 08 The CEB employs about 23,000 staff. Their rights are protected: no job losses, appropriate reassignments, and no loss of benefits—pensions and provident funds continue unchanged. This is a progressive reform.

¶ 09 Under the Ministry fall the CEB, Lanka Electricity Company (Private) Ltd., Ceylon Petroleum Corporation, and others. The Atomic Energy Board and Atomic Energy Regulatory Council have been moved out of the Ministry’s purview. New state-owned companies—National System Operator Ltd., National Transmission Grid Services Provider Ltd., Lanka Electricity Distribution Company Ltd., and Lanka Electricity Generation Company Ltd.—are included under the Ministry.

¶ 10 In Budgets 2025 and 2026 we have proposed numerous initiatives across electricity and energy. In 2025, fossil fuels will still play a role in meeting demand, but our aim is energy security and contributing to global supply diversification.

¶ 11 We plan to modernize and expand Sapugaskanda refinery capacity and construct a new refinery, since Sapugaskanda supplies only about 25% of petroleum needs and 75% is imported, burdening foreign reserves. We have commenced steps for a new refinery.

¶ 12 At Trincomalee tank farm, of the 99 tanks, 24 are being developed by the CPC and 61 under the Trincomalee Petroleum Storage Terminal Company, under a trilateral understanding among India, UAE, and Sri Lanka. Two of the 24 CPC tanks are already under refurbishment.

¶ 13 For EVs, we are establishing 10 charging stations islandwide; seven are operational, with three more to be built in Anuradhapura, Dematagoda, and Bambalapitiya. We are also expanding national fuel storage capacity: Kolonnawa terminal is adding six tanks totaling 64,000 m³ and two more totaling 22,000 m³; Muthurajawela will add three tanks totaling 40,000 m³. We will also modernize the aged pipeline from Colombo Port to Kolonnawa.

¶ 14 CPC has returned to profitability. We, as Government and Ministry, are acting responsibly to ensure national energy security. Thank you.