August 24, Colombo (LNW): Sri Lanka could reduce the repeated swings in electricity prices by cutting its reliance on thermal power generation and making fuller use of renewable energy, according to Public Utilities Commission of Sri Lanka (PUCSL) Chairman K. P. L. Chandralal.
Speaking to journalists on Monday, Chandralal said the heavy cost associated with generating electricity from thermal plants had become one of the key reasons behind changes in electricity tariffs.
He argued that Sri Lanka should give priority to available renewable generation, particularly solar power, whenever sufficient capacity is accessible to meet demand. A greater contribution from renewable sources would help reduce the country’s exposure to the cost pressures associated with conventional power generation.
Thermal generation also has implications beyond the electricity sector, he noted, because much of the fuel required by such plants is imported. Reducing the need for imported fuel could therefore ease pressure on foreign exchange while making the electricity supply chain less vulnerable to international energy markets.
Chandralal pointed out that movements in global oil prices can quickly feed into the cost of thermal power generation. When fuel prices rise, the additional expense can eventually be reflected in the cost of supplying electricity to consumers.
He said a gradual shift towards a more diversified generation mix, with renewables playing a larger role, would provide Sri Lanka with greater protection against such external price shocks. Expanding domestic renewable capacity could also strengthen the country’s energy security over the longer term.
The issue has become particularly significant after several electricity tariff adjustments in recent years. The PUCSL approved a 15% increase in June 2025, followed by another revision in March 2026, with the impact varying according to consumer category and the amount of electricity used.
Reducing thermal dependence could therefore offer Sri Lanka an opportunity not only to contain future generation costs, but also to make household and business electricity bills more predictable as the country continues to expand its renewable energy capacity.
