Here are a few key points that the author have missed:

⭕ Since this is a BOI project, according to the agreement with Adani, the 0.0826 US cents/kWh rate is tax-free.

⭕ Power costs are decreasing, not increasing. PPA rates were around 0.10 cents/kWh a few years ago, but in recent years they have dropped to around 0.04 cents/kWh.

https://t.co/SeO5MAEvgg

https://t.co/5fSXwaNrpl

⭕ At today’s exchange rate, 0.0826 US cents/kWh is about Rs. 25/kWh. As the exchange rate rises, the CEB will have to pay more in rupees. Meanwhile, Sri Lanka’s average generation cost is under Rs. 18/kWh in 2024.

⭕ If the government had secured a deal at around 0.06 US cents/kWh—including the transmission line cost—it would have been a good deal. At 0.0826 US cents/kWh, however, this deal would have been disastrous for Sri Lanka.