Energy
From The Report: Sri Lanka 2019
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The energy sector has made noteworthy progress in a number of respects in recent years. Despite political turbulence in Sri Lanka, key strategic measures were enacted in 2018 to encourage growth, including increasing renewable energy generation capacity; opening the hydrocarbons sector to greater overseas investment; and forming joint working groups to expedite the construction of liquefied natural gas power plants following a string of agreements with foreign governments. Given Sri Lanka’s expanding fiscal and trade deficits, developing an efficient energy market has been cited as one of the key factors that could facilitate a stable macroeconomic environment. However, while recent developments signal the intent of policymakers to promote energy security, disagreements between technocrats regarding a long-term generation expansion plan have hindered development. Aside from a collection of small renewable energy initiatives, the country has not commissioned a major power plant since 2014. This chapter contains interviews with Damitha Kumarasinghe, Director-General, Public Utilities Commission of Sri Lanka; and Allard Nooy, CEO, InfraCo Asia.

Articles from this Chapter

Overview

Strategic aims: Expanding the role of renewables and reducing the fuel import bill are top priorities for policymakers
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The energy sector has made noteworthy progress in a number of respects in recent years. Despite political turbulence in Sri Lanka, key strategic measures were enacted in 2018 to encourage growth, including increasing renewable energy generation capacity; opening the hydrocarbons sector to greater overseas investment; and forming joint working groups to expedite the construction of liquefied natural gas (LNG) power plants following a string of agreements with foreign governments. Given Sri…

Interview

Growth pipeline: Damitha Kumarasinghe, Director-General, Public Utilities Commission of Sri Lanka (PUCSL), on widening access
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Interview:Damitha Kumarasinghe What can the Least Cost Long-Term Generation Expansion Plan (LCLTGEP) do to improve energy independence and balance public and private spending? DAMITHA KUMARASINGHE: The LCLTGEP is designed to meet rising electricity demand for the least cost and fulfil our policy goals related to energy security and self-sufficiency, especially in the electricity sector. The government’s goal is to generate 50% of electricity from renewables, 20% from coal, 20% from domestic…

Analysis

All systems go: Officials green-light key liquefied natural gas projects
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In pursuit of greater energy security, Sri Lankan policymakers have signed three major liquefied natural gas (LNG) deals with the governments of China, India and Japan. Expected to add 1400 MW to installed capacity, the transnational agreements will play a key role in mitigating unreliability in hydropower supply while bolstering foreign capital inflows. Plant Agreements On the back of an anti-pollution drive, countries across the globe have begun switching their power plants to LNG. Sri…

Analysis

Balancing act: Plans to upgrade and expand oil-refining capabilities key to resolving trade imbalances
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In an effort to meet rising energy demand and achieve economic objectives, the state-owned oil company Ceylon Petroleum Corporation (CPC) has invited bids to both build a new refinery and modernise existing facilities at the Sapugaskanda plant. Capacity Following a legacy of limited infrastructure investment, Sri Lanka’s sole refinery and primary port-to-refinery pipeline require development. While the government has made attempts to build new infrastructure in the past, attracting the…