Diesel power replacement cost hit over Rs. 4.5 billion in April after coal generation dropped sharply, worsening Sri Lanka’s energy burden.
Diesel power replacement costs surged past Rs. 4.5 billion in April 2026 after Sri Lanka recorded a sharp decline in coal-based electricity generation compared to the same month last year.
Latest electricity sector data shows that the shortfall in low-cost coal generation had to be filled by relying on expensive diesel power plants, creating a heavy additional financial burden on the country’s already strained electricity sector.
According to official energy sector figures, electricity generation from coal in April 2026 declined by 27 gigawatt-hours, or 27 GWh, compared to April 2025.
Energy experts and senior economists have expressed serious concern over the rising cost pressure, warning that the electricity sector is already facing a severe financial crisis and cannot absorb repeated high-cost generation shocks.
Fuel Cost Behind the Power Gap
According to technical calculations in the sector, based on a standard consumption rate of 0.3 litres per kilowatt-hour, Sri Lanka had to import approximately 8.1 million litres of additional fuel to generate the 27 million units of electricity lost from coal generation through diesel power plants.
Based on global market prices, the cost of a barrel of crude oil is estimated at US$ 286, or approximately US$ 1.80 per litre. Accordingly, the total cost of replacing the electricity shortfall with diesel is estimated at around US$ 14.57 million.
Calculated at the current exchange rate of Rs. 315 per US dollar, this additional fuel bill exceeds Rs. 4.5 billion for April alone.
Heavy Blow to the Economy
Senior energy analysts say the situation highlights the critical economic importance of keeping coal power plants operating continuously at maximum capacity, especially at a time when the government is attempting to reduce electricity tariffs and strengthen national energy security.
“The financial impact of losing low-cost coal-based electricity generation is enormous. Every unit of electricity not generated by coal must be replaced by more expensive sources such as diesel or fuel oil. This ultimately places an unbearable burden on the financial condition of the electricity sector as well as the entire national economy,” a senior energy analyst said.
Even when calculated more traditionally using the minimum average electricity generation cost of Rs. 72 per unit recorded in 2025, the scale of the loss remains severe.
On that basis, the additional financial burden caused only by the 27 million units not generated from coal comes close to Rs. 2 billion.
Energy Planning Under Pressure
The government has repeatedly emphasized the need to maintain affordable electricity tariffs for consumers by reducing dependence on imported fossil fuels and expanding renewable energy capacity.
However, experts warn that these goals will be difficult to achieve if the country’s low-cost baseload generation system continues to suffer such disruptions.
They say continued breakdowns in coal generation will force greater dependence on costly thermal power, while also placing further pressure on Sri Lanka’s limited foreign exchange reserves.
In light of these latest figures, authorities are being urged to pay close attention to electricity generation planning, fuel procurement strategies, and the operational performance of major power plants.
The data clearly demonstrates the importance of ensuring the uninterrupted operation of coal power plants such as Norochcholai until sufficient renewable energy sources and storage facilities are properly integrated into the national grid.
Avoiding such shortfalls must now become a top priority for policymakers if Sri Lanka is to protect both economic stability and energy security.
