Oct 19, 2017 (LBO) – Sri Lanka’s cabinet nod has been received to implement the second stage of the Suryabala Sangramaya Programme with the establishment of 90 small scale solar power plants in addition to the proposed 60 plants.
Ceylon Electricity Board has also affirmed that 90 projects of 1MW can be allowed under the stage two of Suryabala Sangramaya Programme.
Accordingly, Power Minister Ranjith Siyambalapitiya is to call proposals in this regard with relevant amendments to the criteria followed in stage one, to improve the competition.
Cabinet earlier approved to set up 60 small scale solar power plants of 1MW under the first stage of this programme and the proposals are currently being assessed.
Sri Lanka’s cabinet recently approved a proposal to procure 100MW of electricity from private power producers for a period of 6 months with the option of extending it by further 6 months.
Island’s power regulator earlier warned of serious consequences to be expected if the timely implementation of long term generation plan is not ensured.
Public Utilities Commission said due to planned plants not being built as per the timeline, unforeseen power procurement and change of power mix have resulted the increase in the average unit cost of electricity.
Reaching a staff level agreement, the IMF staff team this week said more needs to be done in the area of SOE reforms and upholding the reform momentum will be important for addressing fiscal and external imbalances.
IMF earlier this month stressed that large financial obligations of state owned enterprises need to develop specific reform strategies, and following through on fuel and electricity pricing reform.
Fitch Ratings, however, said in a recent rating action that they do not foresee the government implementing a pricing formula for CEB in the near-term, given the political and social implications in the country.