“Sri Lanka’s energy sector is facing mounting pressure amid rising global fuel prices, a prolonged dry spell, and growing uncertainty in international markets.”

“The ongoing Middle East crisis has further exposed the country’s vulnerability, as its heavy dependence on imported fossil fuels continues to drive up costs and threaten supply stability.”

“Global coal prices have also gone up due to the war and thus increased the cost of coal based generation.”

“The emergency tendered coal also comes at a higher rate which is about 40% extra.”

“The Public Utilities Commission of Sri Lanka (PUCSL) should use the most recent prices for generation costs even when announcing the April electricity tariffs.”

“The excess costs related to the additional oil-based generation to compensate for poor quality coal... cannot be passed to the consumers as per the tariff methodology.”

“The problem is not immediate but in the latter part of the year, in July and August. El-Nino conditions are likely to emerge from July 2026, and this normally results in lower than the average rainfall during this period from the South West monsoon.”

“Due to coal shortage, this period will also likely see one unit of coal plant shut down due to lack of coal.”

“The Government suspended procurement processes for 3 months for fossil fuel procurement - they can easily extend this to renewables and battery storage.”

“The first battery storage tender was floated late last year, one year after this Government came to power, and was awarded only last week.”

“The intent of the electricity sector reform was the overall sector transformation so that we can meet the evolving needs of consumers and industry.”

“The solar generation is significantly reducing oil requirement for over 6 hours during daytime, reducing the generation cost.”