ECONOMYNEXT – Sri Lanka’s electricity generation had plunged 15.8 percent in the first two months of 2023, year from a year ago to 2,232 GigaWatt hours (millions of units) amid an economic slowdown from a currency collapse, official data showed.
Sri Lanka’s power regulator gave approval for a tariff hike in the middle of February 2022 following a delay, and customers saw the price hikes in March.
By January electricity sales were down 19.3 percent to 1,176 GWh, from 1456 GWh before the tariff hike, Central Bank data quoting Ceylon Electricity Board statistics show.
In February power generation was down 14 percent to 1,129 GWh.
Sri Lanka’s system losses were 8.9 percent in 2022, indicating actual sales of power were between 900 to 1000, GWh a month in 2023.
In January electricity sales to industries was down to 18.7 percent to 333 GWh.
Diesel sales in the first quarter of 2023 (which includes power generation needs) were down 43.7 percent to 361,000 metric tonnes.
Petrol sales for the first quarter was down 25.8 percent to 286,000 MT, March sales down were down 27.3 percent in March to 99,000MT, but recovered from 89,000 in January.
Kerosene sales were down 68.8 percent in March 2023, but slightly up from 5,000MT a month earlier.
Sri Lanka printed money and for two years and attempted to float the currency (suspend convertibility) but the rupee collapsed to surrender requirement (a strong side convertibility requirement) from around March 2022.
In March 2023, the rupee started to appreciate in the wake of negative credit and a lifting of a surrender requirement. Power prices are expected to come down after the rupee gain. In countries with better central banks energy prices go up and down.
Some fuel prices were also cut in 2023 amid more consistent monetary policy. (Colombo/May11/2023)