Friday May 22, 2026
Friday May 22, 2026
Friday, 22 May 2026 00:21 - - {{hitsCtrl.values.hits}}
Energy Minister
Anura Karunathilaka
Energy Minister Anura Karunathilaka yesterday told Parliament that the Government expects to settle nearly Rs. 15 billion in outstanding dues owed to renewable energy developers by end-June, amid mounting concerns over payment delays affecting the sector.
He said the National System Operator (NSO) had accelerated payments, releasing Rs. 2 billion on 19 May, while a further Rs. 1 billion is scheduled to be paid next week to renewable energy plants.
The delays have affected 386 renewable energy developers across the country.Responding to allegations that the Government was prioritising costly thermal power generation over renewable energy, Karunathilaka said the focus remained on maintaining the stability of the national grid and ensuring uninterrupted electricity supply.
“The Government has not prioritised thermal power supply, but our priority has always been to maintain stability,” he said.
Karunathilaka said the NSO had been compelled to manage cash flows carefully to secure fuel supplies for thermal power generation amid record electricity demand, rising fuel prices, and low hydro reservoir levels in order to avoid widespread power outages during drought conditions and peak demand periods.
According to figures presented by the Minister, major hydro remains the cheapest source of electricity generation at an average cost of Rs. 2.05 per unit. Mini-hydro generation costs Rs. 14.67 per unit, wind power Rs. 17.40, while rooftop and ground-mounted solar generation averages Rs. 25.13 per unit.
In comparison, the projected average generation cost for thermal power in the third quarter of 2026 is estimated at Rs. 31.99 per unit.
Earlier this month, the Federation of Renewable Energy Developers (FRED) warned that the domestic renewable energy industry was nearing collapse due to prolonged payment delays.
The FRED said NSO payments had effectively stalled since December 2025, causing unpaid dues owed to small and medium-scale developers to escalate sharply, and placing 389 renewable energy plants at risk of operational paralysis (https://www.ft.lk/top-story/Renewable-energy-producers-hit-by-Rs-10-b-unpaid-dues/26-791649).
