Despite heavy rainfall in many catchment areas there has been no relaxation of the Sri Lankan energy crisis. Hydro power generation has fallen to 190 MW from 1135 MW owing to a drop in reservoir levels in the last two years with the result that the Ceylon Electricity Board is running short by 900 MW. Total storage in the reservoirs had fallen to 17.1% during September. Only 100 MW in new power plant can be added to the existing system, at a cost of Rs 15 billion (£120 million), without adding new grid substations and power lines. In any case the benefit would only be to reduce the present power cuts by one hour. The CEB has ruled out immediate changes to the existing eight, six and a half and four hour power cuts, saying it would first have to observe rain patterns over the next few weeks. And there has been no increase in the water level of reservoirs connected to the major Mahaweli hydro power complex.
To help meet the crisis the government is currently deciding on the implementation of key power generation projects with the involvement of foreign investors. Companies from Australia, the Middle East and Malaysia are in the frame. An Australian company has agreed to install three 350 MW natural gas power plants within a nine year period. The government is also negotiating with Western countries to implement the 150 MW Upper Kotmale hydro power station which had been suspended over environmental problems.
Despite the crisis the CEB intends to get under way a Rs.1.1 billion Kuwaiti funded project to provide electricity for 225 of the remotest areas in the Southern, Uva and Central provinces of the country at the end of this year. The CEB expects to increase the proportion of electrified houses in the country to 80 per cent by 2005.
