Energy sector governance under scrutiny: Questions mount over policy direction and transparency

SERIOUS questions about governance practices within Sri Lanka's energy sector are emerging, as concerns grow over potential conflicts of interest, policy inconsistencies, and transparency gaps that could undermine the nation's energy security and economic future.

- By Vidura Relapanawa

The concerns centre on a troubling pattern of individuals moving between private consulting roles and public regulatory positions without adequate safeguards. This raises fundamental questions about whether energy policy is serving national interests or private agendas.

At the heart of these concerns lies the issue of the "revolving door" between private energy consultancies and public sector appointments. Sources familiar with the sector point to instances where individuals have transitioned from leading private firms involved in policy development to assuming key regulatory roles, while their family members or associates reportedly continue to benefit from ongoing business relationships with Government entities.

The situation has drawn attention from consumer advocacy groups and governance watchdogs, who argue that existing conflict-of-interest protocols appear inadequate for addressing the complex web of relationships that characterise the energy sector. The Electricity Consumers Association has reportedly filed formal complaints with anti-corruption authorities, highlighting specific instances where they believe proper procedures were not followed.

Beyond environmental considerations

These governance concerns are significant given apparent shifts in Sri Lanka's energy policy direction. Critics point to what they describe as an unexplained retreat from renewable energy commitments, with decisions that favour fossil fuel imports over domestic renewable capacity development. The implications extend beyond environmental considerations to encompass energy security and foreign exchange expenditure, as increased reliance on imported fuels could leave the country more vulnerable to global price volatility.