The Hon. Nalin Bandara Jayamaha

¶ 01 Hon. Presiding Member, I am pleased to speak under this important Ministry.

¶ 02 On electricity history: from the early industrialization under Dudley Senanayake and Sir John Kotelawala, to the pioneering work of D. J. Wimalasurendra, Sri Lanka’s first hydro project at Laxapana set the path. The Mahaweli programme from 1977 transformed power: Victoria, Randenigala, Rantembe, Kotmale, Moragahakanda, and Samanalawewa together added over 1,200 MW hydro, rapidly electrifying the nation — today roughly 99.9% access. In 1997, CEB even had fixed deposits.

¶ 03 Post-1994, however, progress slowed; emergency procurements grew. Norochcholai (900 MW) — initiated under Mahinda Rajapaksa — remains the largest single addition after Mahaweli and has been vital, despite political opposition at the time. Sampur would have been another asset, but it stalled; responsibility lies in part with then-President Maithripala Sirisena’s leadership for not proceeding. Uma Oya, launched around 2010–2011, was delayed over 15 years, partly due to protests, costing the country billions in opportunity loss. Upper Kotmale (150 MW) too faced agitation but was completed on time.

¶ 04 While our transmission and distribution networks historically had low losses by regional standards, today generation costs are high, pushing up tariffs — a serious problem requiring action.

¶ 05 On LNG and the proposed FSRU: I raised this at SOC and with the Secretary. An FSRU with 40 million MMBtu annual capacity is far beyond our 10–15 million MMBtu/year need until 2035. The annual rental alone is about USD 125 million, payable regardless of utilization — a billion dollars over eight years effectively burdening consumers. A better option is to source LNG from Cochin’s terminal, transport via containers to a smaller local terminal — about USD 40 million per year and adequate for running Sobadanavi and Lakdanavi (about 700 MW) at far lower fuel cost than diesel, reducing generation cost by roughly Rs. 20–26 per kWh. The Ministry must take decisive action on this.

¶ 06 On Battery Energy Storage Systems (BESS): a tariff was developed, but formal sign-off is pending. Ground-mounted and rooftop solar could connect to this. A letter from the Grid Connected Solar Power Association dated 11 November was sent to the responsible official, Eng. Kumara Jayakody. If ministerial signature is not required, ensure the authorized officer signs; expediency is needed. Also, the 160 MW BESS tender opened but is yet to be awarded; please award promptly.

¶ 07 On the Sapugaskanda 100 MW tender: current prequalification effectively blocks Sri Lankan firms that have built 300–500 MW plants locally and abroad (including in Bangladesh and Nepal). BESS installation is not exotic; with the specified batteries, capable local firms should compete. The specs appear tailored for foreign firms, pushing locals into JVs or commissions — this is unacceptable and suggests internal “mafias” in CEB shaping tenders.

¶ 08 Tariffs: While PUCSL indicated scope to reduce by 12–13%, prices remain high; CEB reportedly lost about Rs. 13 billion over six months. The unbundling into four 100% state-owned companies risks becoming four CEBs; consider real private investment participation like telecom reforms, not merely a structural reshuffle. VRS for about 2,000 staff costs ~Rs. 10 billion — who pays that? Also address pending pension increments for CEB retirees that were skipped twice.

¶ 09 On LTL (Lanka Transformers Ltd): Some allegations in COPE were misplaced. In Sobadanavi, LTL was the lowest bidder but did not get the award; they won through litigation later, showing CEB did not favour LTL. LTL has significant overseas operations (Nepal hydro, Bangladesh plants, Indian solar, switchgear manufacturing, transformer factories). Its model — with employee shareholding — has delivered results. Rather than undermining LTL via audits that force it into rigid government procurement rules incompatible with commercial operations, support it with appropriate governance frameworks to access international finance (where majority state ownership can be a constraint). Consider listing and allowing broader shareholding to strengthen capital while retaining state interests.

¶ 10 On CPC: despite price formula claims, CPC’s debt reportedly rose by 38%. If earlier it was alleged Rs. 50 per litre was going astray, why are there still losses? Provide clarity.

¶ 11 On coal procurement: the latest tender reduced inventory requirements from 1 million MT to 100,000 MT and was awarded to Trident Chemphar Ltd, a firm allegedly blacklisted previously in a Sathosa rice supply issue and carrying allegations. Bid security and appeal periods also appear shortened (e.g., seven days vs. standard 14). These deviations raise serious concerns about governance under the current administration.

¶ 12 On hydro potential: no more large new hydro plants are feasible except small additions (e.g., 20–30 MW on Sudu Ganga). Pumped storage is the viable path — e.g., using Victoria’s topography — to store surplus and serve peaks. Also, interconnect with India via cable: our peak is at night (TV hours) while India’s industrial peak is by day; we can export surplus by day and import at night, if terms are right.

¶ 13 Finally, the government promised tariff reductions. Without timely cost reforms and procurement discipline, investment will stay away and people cannot bear current prices. Act now to reduce tariffs. Thank you.