Colombo – May 29, 2025 — The Ceylon Electricity Board (CEB) is reportedly on the verge of signing a series of power purchase agreements (PPAs) with private entities for six wind power plants, each with a capacity of 10 megawatts, at a rate significantly higher than the recommended price potentially causing an estimated loss of Rs. 20 billion to the government, according to internal board sources.
Despite an official recommendation to purchase wind-generated electricity at Rs. 23 per unit, CEB sources say there is an urgent push to finalize agreements that would instead pay Rs. 29.80 per unit. This discrepancy has raised serious red flags about potential financial mismanagement and undue pressure behind the scenes.
The disparity stems from decisions made by the Ministry of Power’s pricing committee, which in 2024 approved the Rs. 29.80 per unit rate. However, for 2025, the same committee revised its recommendation to Rs. 23 per unit, citing market conditions and the need for fiscal responsibility.
Though this lower rate was formally submitted to the Cabinet for approval in March 2025, the process has stalled—allegedly due to delays from officials within the Ministry of Finance. Board insiders claim the real reason for the holdup is to pave the way for signing contracts under the earlier, inflated price, rather than waiting for Cabinet clearance of the new recommendation.
Adding to concerns is the non-transparent ownership structure of the wind power projects. While the agreements are set to be signed with six different companies, insiders allege that the actual beneficiaries are limited to just two or three entities suggesting a possible front operation designed to circumvent procurement scrutiny.
Although tenders are not required for 10 MW wind projects, a pricing committee is still expected to determine a fair per-unit rate. In this case, that process appears to have been subverted, allowing old rates to override updated economic guidance.
With a difference of nearly Rs. 7 per unit, multiplied across millions of units over the plant lifetimes, the financial implications are stark. Energy sector analysts warn this could further strain the national budget and undermine the credibility of the country’s renewable energy expansion strategy.
Critics are now urging transparency and accountability from both the Power and Finance Ministries. “Public trust in energy reform is being eroded,” one senior energy official said on condition of anonymity. “These rushed agreements must be reviewed before irreversible commitments are made.”
As Sri Lanka looks to renewable energy to reduce dependence on costly fuel imports, questions now arise whether such projects are being exploited for private gain at public expense.
