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Sri Lanka electricity supply reaches 94-pct
26 Nov, 2012 13:17:13
Nov 26, 2012 (LBO) - By the end of 2012 94 percent of Sri Lanka's population will have access to electricity including improvements to the grid in war-torn areas in the island's north, the power ministry said.
In 2012, 227,913 new customers had been connected. Off-grid power was provided to 40,000 households.

The distribution network in the northern Jaffna peninsular which was isolated from the national grid was connected through an 'express line' this year.

A 24 MegaWatt generator running on heavy fuel was commissioned in Jaffna which had improved system stability and reduce some cost, the power ministry said.

Ukuwela, Wimalsurendra, New Laxapana and Old Laxapana hydro power stations were rehabilitated.

The power ministry said 37.4 billion rupees of subsidies were given to small households who consume less than 90 units a month.

Another 23 billion rupees in subsidies were given to industries, which are a powerful special interest group.

Places of worship were give 688 million rupees worth power subsidies bring total subsidies to 61 billion rupees.

Industries, including export industries which sell to customers in rich countries, are a powerful lobby asking for electricity subsidies.

Last year a surge in bank credit triggered by power and petroleum subsidies pushed Sri Lanka into a balance of payments crisis sending the rupee plunging from 110 to 134 to the US dollar.

Energy price manipulations are one of the most sophisticated deceptions developed by rulers of so-called third world nations with high deficit-spending and macro-economic instability.

Though energy subsidies give the impression of giving citizens a 'free lunch' they pay dearly when the currency eventually depreciates and inflation rises.

Not only do the prices of all goods go up, but currency depreciation also destroys the real value of lifetime bank deposits of everyone, pension funds of the old, and the wages of the working population.

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READER COMMENT(S)
1. allen Nov 28
The export industries get subsidised electricity and then get a exchnage gain when currency depreciates also. GOSL should slowly increase the cost for these Industries..