Advertisement
Sri Lanka
This Week in AsiaEconomics

Sri Lanka prays for rain as it runs out of fossil fuels to generate power

  • Hydropower can typically meet about 40 per cent of the island nation’s electricity needs, but a dry spell has caused this to drop to about 20 per cent
  • Cash-strapped Sri Lanka is running out of foreign currency to pay for fuel and other imports, which has led to hours-long outages as power plants shut down

Reading Time:4 minutes
Why you can trust SCMP
1
Protesters angered by sky-high inflation and lengthy power cuts call for Sri Lankan President Gotabaya Rajapaksa’s resignation 
in Colombo on Monday. Photo: Bloomberg
Dimuthu Attanayakein Colombo
As the monsoon season begins, hopes are rising in Sri Lanka that a surge in hydropower generation will help alleviate a deepening energy crisis caused by a lack of foreign exchange reserves to pay for fuel and other imports.

Hydropower could well be the medium-term solution to the country’s hugely inconveniencing power cuts, which lasted for as long as 13 hours by the final weeks of March.

With a population of 22 million people, the island nation’s daily electricity demand is about 4,000 gigawatt-hours per day, but the Ceylon Electricity Board (CEB) has been unable to maintain this level of output since January.

Sri Lankans queue up to purchase kerosene oil earlier this month amid the island nation’s fuel shortage. Photo: AP
Sri Lankans queue up to purchase kerosene oil earlier this month amid the island nation’s fuel shortage. Photo: AP

The reasons for this supply deficit are complex – ranging from a drastic reduction in hydropower generation during the dry season, to the country’s slow shift towards other forms of renewable energy. It has only been worsened by the foreign currency crisis, and high prices of oil and coal in the global markets.

Advertisement

Following a nationwide power outage on December 3 last year – believed to be “sabotage” on the part of CEB employees for reasons unrelated to the current crisis – Sri Lanka’s largest power plant at Norochcholai had to shut down for nearly six weeks.

This resulted in some 300 megawatt-hours of daily generating capacity being lost, a CEB source who wished to remain anonymous told This Week in Asia. “And this loss had to be substituted with hydropower. Once the hydropower capacity fell low, thermal energy generated via fuel had to fill in this gap,” the source said.

Debts, defaults

Sri Lanka is running low on foreign currency to pay for fuel. A US$500 million loan from India is expected to run out by the end of this month, though New Delhi has hinted it may increase this to US$2.5 billion. Colombo has also approached China looking to loan a similar amount.
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x