Published electricity hike: Some enterprises face danger of closure – FTZMA

Free Trade Zone Manufactures’ Association (FTZMA) in a letter to Minister of Power and Energy Kanchana Wijesekara says that the published electricity hike by the Public Utilities Commission of Sri Lanka (PUCSL) is unreasonably beyond the requested raise by the CEB is a rising concern of export manufacturing sector which consume more electricity.

“Therefore, this is quite alarming, and we are dumbfounded by this unprecedented move by the PUCSL as some of the enterprises might be facing the danger of closure.”

In this case, we have analyzed the proposed price hike by CEB vs what has been published as per the attached Excel sheet. You can observe that industry sectors in all categories are currently experiencing the largest hikes as this incremental cost is going to add to their manufacturing cost which would result in making “Made in Sri Lanka” products in export markets highly uncompetitive.

Moreover, the Small Medium Entrepreneurs (SMEs) in the category 1-1 being hit hardest by this price hike are extremely worried about the impact on their liquidity position and business survival.

As you know very well the attractiveness of our country for foreign direct investment is evaluated by using many criteria of which the cost of operation is becoming a significant determinant because energy cost, electricity is directly associated with the cost of production of the investors.

“Therefore, we urge you to re-visit and analyze the price structure once again mind bearing that FDIs (Foreign Direct Investors) are the future lifeline & the back-borne of our country’s economy.This being said, it is our fervent hope that you would realize the overall impact on our investors who are seeking a reasonable revision in the price change.”

The FTZMA is also requesting a meeting with the Minister to discuss this further and come to an agreement whilst reaching a win-win situation thereby building mutual respect and retaining much needed Foreign Direct Investments within our country that we both want.