Business

The Ceylon Chamber of Commerce, along with several prominent industry associations, has raised concerns about the Draft National Electricity Policy. They believe that important issues have not been sufficiently addressed. The American Chamber of Commerce, Exporters Association of Sri Lanka, Federation of Renewable Energy Developers, Joint Apparel Association Forum, National Chamber of Commerce of Sri Lanka, and Sri Lanka Association for Software and Services Companies have joined the Ceylon Chamber in this effort, as stated in their announcement. While they acknowledge the need for changes in the electricity sector, the groups highlighted several shortcomings in the draft policy that need more attention. They pointed out that essential topics such as affordability, commitments to reduce carbon emissions, incentives for renewable energy, competition, and the long-term financial stability of the sector are either absent or not well covered. The statement also expressed worries about the proposed changes to tariffs, especially the removal of cross-subsidies and the plan to limit subsidies to households that use less than 30 kWh per month. The submission cautioned that without detailed analysis, these actions could hinder access to affordable and sustainable energy and create potential financial risks. Additionally, the industry groups warned that allowing uncompensated curtailment, eliminating feed-in tariffs, and mandating time-of-use tariffs for rooftop solar users could make renewable energy projects unattractive to international lenders, which would raise the cost of capital for Sri Lanka. The submission called for a forward-looking approach and emphasized the need for a policy framework that adapts to modern electricity systems. This includes planning for energy transition, energy storage, competitive markets, cross-border electricity trade, and new technologies. Consequently, the Chambers and Associations are urging a thorough revision of the Draft National Electricity Policy, ensuring it aligns with the Electricity Act, and asking for it to be resubmitted after meaningful consultation with stakeholders. They also expressed their willingness to work with policymakers to create a policy that promotes affordability, confidence in investments, and the long-term energy security of Sri Lanka.