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Press Release


JICA and CEB jointly hold stakeholder meeting on Power Sector Development in Sri Lanka.

July 11, 2005

The Japan International Cooperation Agency (JICA) and the Ceylon Electricity Board (CEB) are jointly holding a stakeholder meeting to discuss issues of the Sri Lanka’s power sector and its future development in Colombo on 12 July 2005.

The stakeholder meeting will bring together representatives from public, government, commercial, academic and non-governmental organizations. Participants will share findings of a JICA power sector master plan study and reflect their views and opinions into the master plan.

The key topics to be discussed at the meeting are the large gap between future power demand and supply and deteriorating financial position of the CEB. The study team explains the situation as follows.

  • The demand for power has increased at 6.5% annually during the past 20 years and is expected to grow at 7.5% each year for the next 20 years. The power demand in 2024 is forecasted at 4.5 times greater than the current demand level.
  • To meet this huge demand, additional generation capacity of 6,700 MW should be developed.
  • Although hydropower has been the major power source during the past decades, most of the large hydropower sources have already been exploited. Large scale thermal power plants should be sought accordingly.
  • Middle & small-size Independent Power Producers (IPPs) and small diesel generators which were originally planned for an emergency were introduced as a substitute for large-scale thermal power plants, though their construction has yet been materialized. As a result, the power purchase from IPPs, with their costs higher than the CEB tariff, deteriorated its financial position, coupled with the recent fuel price hike.

The study will shed a light on the role of the private sector in meeting the power demand expansion and ways to create a sound environment for attracting private investment into conventional and non-conventional renewable power generation.

The power sector master plan study is being conducted by JICA under the technical cooperation program of the Government of Japan. The objective is to prepare a comprehensive master plan of 20 years for generation and transmission system expansion for Sri Lanka. The study started in January 2005. Now the study team is preparing a draft master plan which includes a generation & transmission development plan, initial environmental examination (IEE) and a long-term investment plan. The team will submit a final report to the Sri Lankan Government in February 2006.

The Government of Japan has provided assistance to Sri Lanka on numerous occasions power development projects. Such assistance includes Kukule Ganga Hydro Power Project, Samanalawewa Hydro Electric Power Project, Kelanitisa Combined Cycle Power Project, Upper Kotmale Hydro Power Project, Transmission and Substation Development Project, and Medium Voltage Distribution Network Improvement Project. In addition, the Government of Japan implemented several studies through JICA such as: Master Plan Study of the Power Transmission System, Feasibility Study on Combined Cycle Power Development Project, Hydro Power Optimization and the follow-up study on the Rehabilitation of Hydropower Stations in the Kelaniya River Basin etc.


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