• Claims Rs. 73 b annual loss due to lack of LNG storage facilities and reliance on diesel 
• Ex-CEB Chair Siyambalapitiya defends approval process 

The Electricity Consumers' Association (ECA) has alleged that a power purchase agreement (PPA) between the Ceylon Electricity Board (CEB) and Sahasdhanavi Limited (a fully-owned subsidiary of LTL Holdings Limited in the power and energy sector) in April of this year, could lead to an annual loss of Rs. 73 billion in public funds.

In April, a PPA was signed between Sahasdhanavi and the CEB for the development of a 350 megawatt (MW) liquefied natural gas (LNG) dual fuel power plant.

Speaking to The Daily Morning, the ECA General Secretary, Sanjeewa Dhammika claimed that the relevant agreement was signed under the leadership of the former CEB Chairperson Dr. Tilak Siyambalapitiya, who also served as the Chairperson of the private company in question (Sahasdhanavi) at the time. He claimed that this is a clear conflict of interest and accused him (Dr. Siyambalapitiya) of violating the Anti-Corruption Act, No. 9 of 2023 by not disclosing his dual roles when approving the agreement. "This deal was presented to the Cabinet of Ministers as a plan to purchase electricity from a LNG power plant. However, Sri Lanka still has no infrastructure in place to store LNG. There is no way to bring LNG into the country, and it’s unlikely to happen for at least another five years. So, the reality is that this power plant is running on diesel, not LNG. This is an attempt by a group of individuals that benefit from the country’s continued reliance on expensive, diesel-generated electricity, to earn billions of money," he alleged. Dhammika further said that he filed a complaint with the Commission to Investigate Allegations of Bribery or Corruption against Dr. Siyambalapitiya for failing to act within the prescribed legal framework during the agreement-signing process. "The relevant legal provisions require public officials to disclose conflicts of interest, but, he signed this deal as the Chairperson of the CEB, buying electricity from a company where he himself was the Chairperson. That’s a clear conflict. He should have stepped away from the decision,” Dhammika pointed out.

When contacted by The Daily Morning, Dr. Siyambalapitiya, who recently stepped down as the CEB Chairperson, said that the 350 MW combined cycle power plant is part of the approved Long-Term Generation Expansion Plan, as endorsed by the CEB, the Public Utilities Commission of Sri Lanka (PUCSL), and the Government. He added that this project has been part of the planning framework for several years. "The procurement process began in 2022, and the winning bidder was selected through a competitive, Cabinet-appointed committee. The award was granted in 2023 after the necessary legal and regulatory approvals were obtained. The process also included reviews and endorsements from the Attorney General (AG) and the PUCSL."

Commenting on the alleged conflict of interest, he said: "The CEB Chairperson is the ex-officio Chairperson of the LTL as well. The winning bidder for this power plant, now named Sahasdhanavi, is a subsidiary of the LTL. The procurement process of a project of this magnitude is handled by the Governmental procurement system and the Energy Ministry with Cabinet approvals and reviews by the AG and the PUCSL at all stages. All agreements of the CEB are signed by the CEB Chairperson and Vice Chairperson. A need doesn't arise to additionally disclose that the CEB Chairperson and the LTL Holdings Chairperson are one as all such disclosures are properly made to all the authorities including the respective boards and regulatory agencies."