June 12, 2013 (LBO) – Sri Lanka’s power generation rose 02 percent in March 2013 to 1,057 GigaWatt hours (millions of units) from a year earlier, recovering from a slump in February official data showed. In February 2013 power generation fell 1.4 percent to 913 GWh from a year earlier.
In February 2012, Sri Lanka raised power prices and the central bank floated the exchange rate and started pulling back from injection of tens of billions of rupees into the banking system that had fired a credit bubble to end a balance of payments crisis.
A balance of payments crisis, involving ‘shortages’ of foreign currency are associated with so called soft-pegged exchange rate arrangements where a central bank prints domestic money and tries to control the exchange rate at the same time, which is against the laws of nature.
In the first quarter of 2013, power generation was up 0.5 percent to 2,957 GWh from a year earlier.
In the year to December 2012 power generation grew 2.4 percent to 11,807 amid a slowing economy and some power cuts as two large power plants failed at the same time. Sri Lanka’s economic growth slowed to 6.4 percent in 2012 from 8.2 percent in 2011.
There has also been ‘un