The Government is refraining from imposing power cuts despite the need to do so, fearing a public backlash, former MP Sujeewa Senasinghe claimed.
Speaking at a media briefing, Senasinghe alleged that Sri Lanka was heading towards a major energy crisis due to what he described as the ongoing coal fraud and mismanagement in the power sector.
“Although power cuts are necessary under the present circumstances, the Government is not implementing them. If power cuts are imposed, public opposition will emerge, and that is why the Government is avoiding it,” he said.
Senasinghe claimed that the use of substandard coal had reduced electricity generation at the Lakvijaya Power Plant, while delays in coal shipments had also limited supplies required for operations.
He said the country would receive only around 50% of its expected electricity generation from Lakvijaya this year, with the remaining demand having to be met through diesel-powered plants.
He further alleged that this had sharply increased generation costs, noting that hydropower costs around Rs. 3 per unit, coal-generated electricity around Rs. 23 per unit, while diesel generation costs nearly Rs. 80 per unit.
“When all factors are considered, producing one unit of electricity now costs around Rs. 60,” he said.
Senasinghe also claimed that diesel stocks imported into the country were being diverted for electricity generation, while alleging that irregularities had also taken place in diesel procurement.
He further alleged that Sri Lanka had paid among the highest global prices for diesel.
According to him, the reduced electricity output caused by substandard coal could result in direct losses of around Rs. 20 billion, while indirect economic losses could rise to nearly Rs. 200 billion.
“This is causing serious damage to the economy,” he said.
Senasinghe also claimed that around 390 renewable energy companies had not been paid for four months, alleging that funds had instead been prioritised for diesel imports.
He further criticised the Government’s broader economic management, claiming growth had slowed sharply and development activity remained stagnant under the current administration.
