Sri Lanka’s power sector has been a magnet of controversy for many years, and despite endless discussions, plans, and projects by every Government, there remains a question as to whether the sector shows promising signs of becoming stable.
The Ceylon Electricity Workers Union (CEWU) recently alleged that the government is planning to amend the Sri Lanka Electricity Act No. 20 of 2009 to permit foreign firms to generate electricity using solar and wind power in the country. Earlier on, the Janatha Vimukthi Peramuna (JVP) urged the authorities to withdraw forthwith an alleged Cabinet of Ministers proposal to transfer 40% of the shares of the Yugadanavi power plant in Kerawalapitiya, held by the Treasury to a US-based company, and to terminate the relevant agreement.
Whether the involvement of foreign firms is a bad thing is a tough question, and there is no direct answer to it. First and foremost, Sri Lanka is a country trapped under a debt mountain, and the amount and nature of resources the country can afford to allocate for better power generation plans, or the upgrading of the existing projects, is limited. From an economic perspective, collaborating with local or foreign firms that can provide the necessary services seems like a more economical step. Funds are a decisive factor, and almost all activities, including policy level decisions pertaining to power generation projects’ economic viability, depend on that.
However, when it comes to power generation projects implemented in collaboration with foreign firms, Sri Lanka has had unpleasant experiences too. The controversy surrounding the Chinese-backed Norochcholai coal power plant is a good example, even though in the past few years it has become one of the foremost power plants that Sri Lanka’s electricity consumers depend on. However, the spate of breakdowns the power plant had and the consequent repairs, and also the expensive emergency power purchases, were not very healthy for the country’s economy.
This is where the allegations of the authorities taking commissions come up. With regard to the plans to amend the Electricity Act, such allegations were levelled as well, and the CEWU alleged that certain authorities were planning to purchase a unit of electricity for Rs. 22, when local firms can provide a unit for as little as Rs. 8. They also said that opting for foreign firms’ involvement to generate power even when the Ceylon Electricity Board (CEB) is equipped to do that is also a result of certain authorities’ greed for commissions and other perks.
Perhaps the right question to ask is, how to benefit from power generation projects with foreign firms that can assist Sri Lanka not only by giving financial assistance, but also expert knowledge, new technology and state of the art strategies to minimise the cost involved in the generation of power, and to address corruption and the short sightedness that plague these projects.
On the one hand, there is a long overdue need to make the sector a profitable one, while on the other hand, there are unanswered questions as to why Sri Lanka is moving at a snail’s pace when it comes to shifting to the widely available renewable energy sources. Both these concerns have become integral parts of the country’s power sector, while addressing them has become an election promise that has gone stale. It is the authorities’ duty to make and implement policies that ensure that foreign backed projects help Sri Lanka achieve these objectives.
The bottom line is, Sri Lanka is a country that is struggling on the verge of a financial crisis, and corruption and the squandering of public funds has taken its toll on tax paying citizens for decades. Any foreign backed project, regardless of its nature, has to somehow contribute to the country’s progress, not a few who are plotting to gain undue benefits.
As a country, perhaps this is high time to introduce national policies on initiating not just power generation projects, but any form of foreign backed development projects. This would see to it that the potential benefits of these projects always outweigh the potential losses, because Sri Lanka is absolutely not in a position to waste any more money and the power sector is not a sector to be trifled with.Editorial: Power foreign projects through a national policy
15 Jul 2021
Editorial: Power foreign projects through a national policy
15 Jul 2021
Sri Lanka’s power sector has been a magnet of controversy for many years, and despite endless discussions, plans, and projects by every Government, there remains a question as to whether the sector shows promising signs of becoming stable.
The Ceylon Electricity Workers Union (CEWU) recently alleged that the government is planning to amend the Sri Lanka Electricity Act No. 20 of 2009 to permit foreign firms to generate electricity using solar and wind power in the country. Earlier on, the Janatha Vimukthi Peramuna (JVP) urged the authorities to withdraw forthwith an alleged Cabinet of Ministers proposal to transfer 40% of the shares of the Yugadanavi power plant in Kerawalapitiya, held by the Treasury to a US-based company, and to terminate the relevant agreement.
Whether the involvement of foreign firms is a bad thing is a tough question, and there is no direct answer to it. First and foremost, Sri Lanka is a country trapped under a debt mountain, and the amount and nature of resources the country can afford to allocate for better power generation plans, or the upgrading of the existing projects, is limited. From an economic perspective, collaborating with local or foreign firms that can provide the necessary services seems like a more economical step. Funds are a decisive factor, and almost all activities, including policy level decisions pertaining to power generation projects’ economic viability, depend on that.
However, when it comes to power generation projects implemented in collaboration with foreign firms, Sri Lanka has had unpleasant experiences too. The controversy surrounding the Chinese-backed Norochcholai coal power plant is a good example, even though in the past few years it has become one of the foremost power plants that Sri Lanka’s electricity consumers depend on. However, the spate of breakdowns the power plant had and the consequent repairs, and also the expensive emergency power purchases, were not very healthy for the country’s economy.
This is where the allegations of the authorities taking commissions come up. With regard to the plans to amend the Electricity Act, such allegations were levelled as well, and the CEWU alleged that certain authorities were planning to purchase a unit of electricity for Rs. 22, when local firms can provide a unit for as little as Rs. 8. They also said that opting for foreign firms’ involvement to generate power even when the Ceylon Electricity Board (CEB) is equipped to do that is also a result of certain authorities’ greed for commissions and other perks.
Perhaps the right question to ask is, how to benefit from power generation projects with foreign firms that can assist Sri Lanka not only by giving financial assistance, but also expert knowledge, new technology and state of the art strategies to minimise the cost involved in the generation of power, and to address corruption and the short sightedness that plague these projects.
On the one hand, there is a long overdue need to make the sector a profitable one, while on the other hand, there are unanswered questions as to why Sri Lanka is moving at a snail’s pace when it comes to shifting to the widely available renewable energy sources. Both these concerns have become integral parts of the country’s power sector, while addressing them has become an election promise that has gone stale. It is the authorities’ duty to make and implement policies that ensure that foreign backed projects help Sri Lanka achieve these objectives.
The bottom line is, Sri Lanka is a country that is struggling on the verge of a financial crisis, and corruption and the squandering of public funds has taken its toll on tax paying citizens for decades. Any foreign backed project, regardless of its nature, has to somehow contribute to the country’s progress, not a few who are plotting to gain undue benefits.
As a country, perhaps this is high time to introduce national policies on initiating not just power generation projects, but any form of foreign backed development projects. This would see to it that the potential benefits of these projects always outweigh the potential losses, because Sri Lanka is absolutely not in a position to waste any more money and the power sector is not a sector to be trifled with.Kapruka
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Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!