FTZMA raises concerns on proposed 2-hour power outage

• Cautions move would lead to “very tragic effects” soon
• Says power outage is a very tedious task to cope for those unable to invest in power generators
• Urges govt. to urgently intervene and refrain from implementing any power outage at free trade zones

The Board of Investment (BOI) enterprises raised serious concerns yesterday on the proposed two-hour power outage, a step, if implemented, would deliver a massive hit to the industries, as they look to recover from the impacts from the COVID-19 pandemic.

The Free Trade Zone Manufactures’ Association (FTZMA) asserted that the proposed power cuts in the industrial zones are a rising concern for foreign direct investors and would result in “very tragic effects” that would be noticed in near future.

The FTZMA said some of the major impacting areas are timely processing, producing and delivering of goods in line with the deadlines set by the international buyers.

The power disruption is also impacting the functioning of most manufacturing plants that require an uninterrupted electricity connection in order to run the plants day and night.

“... this power outage is seemingly a very tedious task to cope up with by the plants, which are unable to invest in power generators. 

Those who could afford in using standby generators will have to take an extraordinary cost on production, resulting in their export product become costlier than that of the standard selling price, thus making them uncompetitive in the export markets,” FTZMA  Chairman Jatinder Biala said in a letter to Power and Energy Minister Gamini Lokuge, yesterday.

The association urged the government to urgently intervene and refrain from implementing any power outage to the locations of all free trade zones in the country.

It stressed that the government must fulfil the commitment made to foreign investors in the country, as per the agreement signed with the BOI, which is providing the necessary infrastructure at all times, so that the processes are not impacted. “A continual power supply was even pledged by the previous Chairman of the CEB to the BOI and as well as Aviation and Export Zones Development State Minister D.V. Chanaka. 

“Therefore, we very much look forward to your urgent actions in acceding to our above request for enabling our enterprises to continue their operation without any disruptions,” Biala said.