Govt. draws fire over allocation of Rs. 78 mn to Power Sector Reform Secretariat

Electricity consumers have criticised the budget allocations for the Power Sector Reform Secretariat (PSRS), alleging wasteful spending and attempts to undermine renewable energy development.

Addressing a press conference in Veyangoda yesterday, Electricity Consumers’ Association National Secretary Sanjeewa Dhammika questioned the government’s decision to allocate Rs. 78 million to the PSRS, which was originally established to function on a voluntary basis.

“Now, the government has allocated Rs. 78 million, Rs. 28 million for recurrent expenses and Rs. 50 million for capital expenditure, for an office with just four officials,” Dhammika said, adding that the amount translated to a monthly salary of over Rs. 530,000 per officer. “Is this what the government means by cost-cutting and voluntary work?” he asked, pointing out that the Secretariat was housed in a state-owned building belonging to the Ministry of Power and Energy.

Dhammika also raised concerns over what he described as a 230% increase in the Ministry’s total expenditure from Rs. 6,987 million, projected for 2026 in last year’s budget, to Rs. 23,100 million in the new proposal. “These inflated allocations will eventually be passed on to the public through higher tariffs, especially under IMF’s fiscal constraints,” he warned.

Dhammika further accused the government of undermining the solar power industry, noting that allocations for rooftop and community solar projects had been slashed from Rs. 5,353 million in 2024 to just Rs. 290 million in the revised budget, with no funds set aside for 2026.

Similarly, funds for floating solar projects at Chandrika Wewa and Kiri Ibban Wewa had been completely removed, he said. “This budget is designed to stifle renewable energy and burden consumers.”

By Anuradha Hiripitiyage ✍

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