Sri Lanka Blames China For Its Energy Crisis

January 31, 2014

Power and energy Minister Pavithra Wanniarachchi blamed China for the  power shortages and high electricity prices in Sri Lanka saying the island’s biggest power station built by a Chinese company has suffered frequent breakdowns, The Business Standard reported today.

Pavithra Wanniarachchi

Wanniarachchi said problems with the 300-megawatt coal-powered plant, the largest single electricity generator in the country, was forcing Sri Lanka’s main state-run energy company to buy more expensive electricity from private firms.

“The coal power plant is breaking down frequently. We are asking the Chinese to fix it,” Wanniarachchi told reporters in Colombo. “These failures are not good for the image of China.”

The Lakvijaya Power Station at Norochcholai was commissioned in 2011 with the promise of reducing energy costs to Sri Lankan consumers. The second phase of the project which is due to add 600 MW of electricity is to come into operation soon. The US 1.2 billion dollar plant which has obtained the nick name of “Always breakdown” was build with high interest loans from China. The costs for this plant is paid for by the public of this county at a phenomenal interest of eight percent per annum.

According to the Central Bank the losses at the The Ceylon Electricity Board is more than Rs 60 billion.

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