The Hon. Amila Prasad

¶ 01 Hon. Presiding Member, this is a very important debate. From day one I said: the main problem of our country is not merely theft, though it is a problem; the critical crisis that has held us back and will continue to do so is the energy crisis. If we can supply energy cheaply, continuously, and in line with demand, we can take this country on a fast development path. The people will see this if we become energy self-sufficient at low cost.

¶ 02 A Member earlier asked why prior Governments could not reach proposed targets. In every effort related to energy, a faction of the then Opposition—the JVP—sabotaged and disrupted. Had Sampur been built in 2014, many issues would have been resolved. That faction is not in Opposition now; that is an advantage for us.

¶ 03 Some deride “banana distribution”; even if nothing else was given, if a group later gave a banana and took a political photo, so be it—but many gave nothing and now criticise.

¶ 04 They also spoke of fires and arson. In 2005, the JVP made someone President; in 2008–2010 those incidents occurred. Own the full package.

¶ 05 On staff regularization: yes, numbers increased, but wages alone are not the core problem. Who demanded regularization? Those who mobilized manpower staff to bring you to power did. Now they preach.

¶ 06 Electricity demand moves with GDP. The CEB’s problem is overstaffing at lower levels and lack of remuneration and facilities for skilled staff. Pay and support skilled cadres rather than padding the lower tiers.

¶ 07 Rising electricity demand is a sign of development. Beyond internal reorganizations, what measures have you taken to relax regulations, reduce red tape, and attract investment? This is the first real opening of the electricity sector to the private sphere. You now acknowledge market competition lowers tariffs—something you once opposed. Good. The public can then see how competitive markets deliver lower prices. I note small regulatory relaxations and investor interest; that is positive. Remove the socialist boot and try a capitalist shoe at least on one foot—good for the people. Expand private participation.

¶ 08 To the State Minister: media reported CEB losses and quarterly swings. Daily Mirror of 18 November says Q1 loss Rs. 18.4 billion; Q2 profit Rs. 3.5 billion; Q3 profit Rs. 5.3 billion; net Jan–Sep loss Rs. 9.58 billion versus last year’s Rs. 143.7 billion profit. Yet you said the year-end profit would be Rs. 25 billion. That implies earning Rs. 35 billion in the last quarter alone while currently in loss. How is such volatility possible without big changes in rainfall, fuel prices, or sun hours? If true, it suggests transactions with diesel IPPs, which are the costliest. Please clarify; otherwise admit it was untrue.

¶ 09 About 30% of our electricity comes from oil and coal. What concrete steps did you take last year to reduce this share? Government must maximize public benefit.

¶ 10 Sri Lanka still utilizes less than 20% of annual rainfall potential for hydropower. Consider innovative water management to increase hydropower without major environmental harm—mid-country water retention, cascades, etc.—and small hydro on Kelani and elsewhere to also mitigate floods, redesign water maps for agriculture, and optimize transmission.

¶ 11 A major obstacle is the grid. Even if we blanket rooftops with solar, without modernizing the grid—requiring US$ 3–5 billion—we cannot integrate variable energy. The Government lacks funds and blocks private capital. You limit feed-in, cut tariffs, and deter investors; locals move capital abroad. Meanwhile, wages and allowances become the public’s burden.

¶ 12 Abandon dual policy. Keep state ownership of the grid but open a portion to private investment, channel proceeds to grid modernization, and resolve many issues. Investment will then flow.

¶ 13 If funds still fall short, sell non-core assets to finance the grid. Without it, adding solar at scale is pointless. This must go straight to the President—only he can unlock private participation in the National Grid.

¶ 14 On petroleum and refining: you boasted earlier that if a refinery was built before highways, its proceeds could make us self-sufficient. A year has passed; no new refinery. If Government cannot, invite the private sector without fear. A refinery’s byproducts can support fertilizer production, etc. Farmers lack fertilizer; funds were not given. You thumped tables when told there was money in the North, yet funds weren’t allocated for fertilizer or for a refinery.

¶ 15 On fuel pricing: I have seen no meaningful steps to reduce fuel prices; the price formula continues—useful for cost recovery but not for consumer relief. You said you would source oil directly from some countries; there is no update.

¶ 16 Triangularly, as said this morning, develop Trincomalee oil tank farms and, with India, build a new economic zone.

¶ 17 Thank you.