Mullikulam Power Projects Awarded at Record-Low Rates

COLOMBO (News 1st); Sri Lanka’s President Anura Kumara Dissanayake reported a major breakthrough in energy procurement, following the introduction of a competitive bidding system aimed at securing the most favorable prices for consumers. 

President Anura Kumara Dissanayake highlighted the achievement during the 2026 Budget presentation, citing dramatic cost reductions in recent power generation projects.

Since assuming office in September last year, the administration has prioritized transparency and efficiency in government procurement. This approach has already paid off: two new power projects in Mullikulam, tendered on October 28, 2025, were awarded at prices significantly lower than those under previous administrations.

Under the new system, bids for the Phase I 50 MW power plant came in at US cents 3.96 per unit, while Phase II, also 50 MW, was awarded at US cents 3.77 per unit. 

Additionally, the Mannar Phase 1 Expansion Project—a 50 MW wind power initiative—was secured at US cents 4.65 per unit.

These figures represent a sharp contrast to earlier deals, where 500 MW projects were awarded at US cents 8.26 per kilowatt-hour, without proper procurement processes or cost considerations for substations.