Home Sri Lanka Oversight committee calls for price revision on Kerawalapitiya LNG power plant
Sri Lanka

Oversight committee calls for price revision on Kerawalapitiya LNG power plant

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Sri Lanka’s Parliamentary Sectoral Oversight Committee on Infrastructure and Strategic Development has called for an urgent revision of the pricing framework approved for the proposed 350-megawatt Kerawalapitiya Sahasdhanavi Liquefied Natural Gas (LNG) Power Plant, citing outdated cost assumptions from 2021.

At a committee meeting held on 25 August and chaired by Opposition MP S.M. Marikkar, lawmakers instructed the Ministry of Energy to formally update the Cabinet on the current pricing landscape, which has shifted significantly due to global fuel price volatility and currency fluctuations.

The project, which is expected to begin operations by end-2027, was based on economic variables—such as fuel prices and the U.S. dollar exchange rate—that have since changed considerably.

The committee also scrutinised the operational status of the Sobadhanavi power plant, which was designed to run on both LNG and diesel but currently functions solely on diesel.

Officials cited delays in LNG procurement, noting that a separate process involving a floating storage regasification unit (FSRU) is still pending. The committee urged immediate action to expedite LNG supply.

Leader of the Opposition Sajith Premadasa stressed the need for a clear and accountable roadmap to prevent similar delays or inefficiencies in the Sahasdhanavi project.

Officials also said that President Anura Kumara Dissanayake has directed that the Sahasdhanavi plant be fully operational on LNG by the end of 2028.

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