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Estimated Power Sector Cost Burden (Apr-Jun)
Additional costs incurred due to power generation issues and reliance on expensive alternatives.
Primary Sources
Oil, Coal and Power Cuts: Is the Govt Walking Into Disaster?
A deepening national crisis is beginning to take shape as diplomatic missteps, Russian oil uncertainty, substandard coal, drought, and rising political pressure combine to place Sri Lanka on the edge of another energy and governance storm. It has now been 35 days since the United States began its war against Iran. What started as a confrontation involving only the United States, Israel, and Iran has steadily widened into a broader Middle Eastern conflict, sending shockwaves through the region and creating economic and political consequences that are now being felt far beyond its borders, including in Sri Lanka. Within the very first hour of the conflict, Opposition Leader Sajith Premadasa made a special statement in Parliament, warning that the war could soon trigger a fuel crisis in Sri Lanka. He cautioned that the Strait of Hormuz might be closed and stressed that the country should urgently begin talks with nations such as Russia and India to ensure an uninterrupted supply of fuel and energy resources. Follow The Morning Telegraph WhatsApp Channel Get breaking updates, instant alerts, and exclusives. Join Now Foreign Minister Vijitha Herath, however, responded dismissively, even mockingly, arguing that there was no genuine danger of the Strait of Hormuz being shut. He further claimed that even if such a development took place, Sri Lanka would still face no real problem because oil could easily be sourced through Singapore. Yet, in the end, those who mocked Premadasa’s warning now appear to have fallen directly into the very crisis he predicted. They were eventually forced to begin urgent discussions with Russia in an effort to secure fuel supplies, but by then the response looked far less like strategy and far more like a delayed reaction after the damage had already begun. Last week, the Inside Politics column revealed that attempts to obtain oil from Russia were not being pursued primarily through formal government-to-government channels, but rather through personal networks and informal connections. Many had assumed that Russia, under a left-oriented political leadership, would naturally support Sri Lanka’s present self-described leftist government. But perhaps because the current administration has projected an ideologically confused posture, appearing to lean both left and right at the same time, Moscow did not initially seem eager to assist. BRICS Summit A major reason cited by many observers was Sri Lanka’s decision to decline a written i...
AG: Coal procurement full of irregularities - The Island
Sri Lanka’s power sector is bracing for a steep electricity tariff hike, with senior officials confirming that a revised proposal seeks an additional 53% increase, just weeks after the last revision took effect on 01 April. The move follows a deepening cost crisis, triggered by substandard coal imports and ongoing fossil fuel supply constraints, which, officials say, have already imposed a burden exceeding Rs. 20 billion for the April–June period. “The numbers are alarming. This is not a marginal adjustment but a structural cost shock,” a senior energy sector official told The Island. “The tariff filing reflects a requirement of around Rs. 40 billion, and roughly half of that is directly linked to the coal issue.” According to internal estimates, coal-based generation has dropped by nearly 250 gigawatt-hours (GWh) during the three-month period due to poor-quality fuel, forcing greater reliance on costly diesel generation. “Replacing that lost capacity with diesel costs in the region of Rs. 25 billion,” another official said. “Even after accounting for about Rs. 4.5 billion in reduced generation costs, the net additional burden exceeds Rs. 20 billion.” The National System Operator (NSO) has projected a total additional cost of approximately Rs. 42 billion for the quarter, forming the basis of the latest tariff application now under review. Former Energy Minister Eng. Patali Champika Ranawaka also weighed in, warning against transferring the burden to consumers. “To increase tariffs by Rs. 41 billion under these circumstances is deeply concerning. Around Rs. 20 billion of that is due to the coal issue,” Ranawaka said. He urged the Public Utilities Commission of Sri Lanka not to approve measures that would pass inefficiencies and losses directly onto the public. Ranawaka called on the government to take firm action against those responsible instead of deflecting accountability. “The focus must be on accountability and recovery, not on shifting blame or burdening the people,” he said, in an apparent reference to past attempts to attribute power sector failures to external or trivial causes. Officials acknowledged that the proposed increase, if approved, would place additional strain on households and businesses already grappling with high living costs. “What is particularly concerning is the contradiction between assurances and actual filings,” a senior official noted, referring to earlier claims that losses from the coal issue would not be passed on to consum...
Power crisis looms: Govt. blames West Asian conflict, opposition flags ...
The launch, held in Colombo, was well attended, with three former presidents, namely Mahinda Rajapaksa, Gotabaya Rajapaksa and Maithripala Sirisena, in attendance along with Samagi Jana Balawegaya (SJB) Leader Sajith Premadasa.
Coal issue: Chanaka accuses Minister of suppressing report
SLPP MP D.V. Chanaka has accused Energy Minister Kumara Jayakody of attempting to suppress a report on the importation of substandard coal. ..
