Lanka to facilitate private sector investment in energy sector - Power and Energy Minister

NEW DELHI: "Sri Lanka is committed to facilitate private investment in the energy sector and has already invested in the power sector. The Government is purchasing substantial quantities of power from the private sector and also generate substantial quantities of power using State owned power plants."

This was revealed by Power and Energy Minister W. D. J. Seneviratne addressing the second meeting of the SAARC Energy Ministers held in New Delhi on Wednesday.

He reminded the participants what the Speaker of the National Assembly of the Islamic Republic of Pakistan Amir Hussain said at the first meeting of Energy Ministers held on October 01, 2005.

In his address he mentioned "for economic prosperity of SAARC region, we have to ensure that all forms and resources of energy whether commercial or non-commercial, whether conventional or non-conventional, whether renewable or non-renewable, all are put to their best use."

In the spirit of the above, Sri Lanka has been working towards fulfilling the joint statement issued at the conclusion of the first SAARC Energy Ministers' meeting held in October 2005.

The joint statement of the SAARC Energy Ministers has several principal items. The first is the establishment of SAARC Energy Centre in Pakistan.

"I am glad to see substantial progress achieved by the SAARC in this direction and observe that the Energy Centre has now been established. Our Sri Lanka representative on the Governing Board of the SAARC Energy Centre attended the first meeting held from November 6-7, 2006 at Islamabad.

I am informed that the Government Board has already approved the budget for the Year 2007 and I trust that the needed personnel for activities are being recruited."

The second item mentioned is the facilitation of private investment in the energy sector. Sri Lanka is committed to this and as a result private sector has already invested in the power sector.

The Government is purchasing substantial quantities of power from the private sector and also generating power using Government owned power plants. In respect of oil prospecting, Sri Lanka is facilitating the entry of private sector, he said.

In respect of the third item i.e. accessing resources from International Financial Institutions for harnessing regional energy potential, steps have been taken. World Bank and ADB are funding several projects, he observed.

In respect of the next item of the joint statement where the development of a regional energy database is to be undertaken, we consider this to be of great practical importance to the region.

"I am happy to note that preparation of a regional energy database has been approved by the Board of Governors of the SAARC Energy Centre and Sri Lanka is committed to support this effort and to contribute positively," the Minister said.

The next item of the joint statement, promotion of energy trade including establishment of regional energy grids, I am happy to announce that interconnection of power grid of India and Sri Lanka is being considered at this time. "We are expecting ADB support for this study.

Sri Lanka has a mix of hydropower and thermal power generation and the interconnection is likely to facilitate around 500 MW power transfer between India and Sri Lanka to their mutual advantage," he said.

"I would like to offer Sri Lanka as the venue for the next SAARC Energy Ministers' Meeting. I hope that this offer would meet with your acceptance, so that I would have the privilege of receiving and hosting my fellow SAARC Ministers of Power and Energy, in my own country, Minister Seneviratne said.