Sri Lanka Must Move Faster on Renewable Energy
The National People’s Power government is right to place renewable energy at the centre of its economic strategy. Few policy areas offer Sri Lanka a greater combination of lower costs, stronger energy security and long-term industrial competitiveness.
For decades, Sri Lanka has remained trapped between imported diesel, expensive coal, foreign exchange shortages and a national grid vulnerable to global price shocks. Every rise in oil prices or shipping costs eventually finds its way into electricity bills, transport costs and the price of food. Businesses pay more to manufacture. Families pay more to live. The economy becomes less competitive.
The case for renewable energy is therefore not only environmental. It is economic.
Sri Lanka has some of the most favourable conditions in Asia for renewable energy. It is an island with year-round sunlight, long coastlines, strong wind corridors and significant potential for rooftop solar, offshore wind and battery storage. The country does not need to reinvent the wheel. It simply needs the political will to move faster.
Countries such as China provide an important example. Once heavily dependent on coal, China invested aggressively in solar panels, wind turbines, electric vehicles, battery technology and charging infrastructure. Today, China is the world’s largest producer of renewable energy equipment and one of the biggest investors in green technology. Its success came not because it abandoned coal overnight, but because it developed a long-term state-backed strategy with clear targets, financing support and industrial planning.
Sri Lanka should study how China combined government incentives, local manufacturing, research and public-private partnerships. Rather than relying only on imported fuel, Sri Lanka can create a domestic renewable energy industry that generates jobs, technical skills and investment opportunities.
The NPP government should immediately establish a national renewable energy task force. That body should include engineers, economists, private sector representatives, environmental experts, universities, community groups and energy investors. Its first task should be to prepare a white paper setting out how Sri Lanka can increase the share of solar, wind and battery storage over the next five, ten and fifteen years.
Such a plan should answer practical questions. How quickly can rooftop solar be expanded? How can approvals for wind projects be accelerated? How can households be encouraged to install solar panels? Should there be low-interest loans, tax credits or import duty reductions for renewable equipment? Can local firms assemble or manufacture components in Sri Lanka rather than relying entirely on imports?
There is also a transport dimension. Sri Lanka is already seeing more electric vehicles on the road, while Chinese-backed charging infrastructure continues to expand. Electric vehicles make little sense if the electricity powering them comes mainly from diesel or coal. A genuine transition requires both cleaner electricity and wider charging networks.
One of the biggest barriers to renewable energy in Sri Lanka has often been resistance from entrenched interests. There have long been complaints that sections of the old energy establishment — including some linked to diesel generation, coal imports and politically connected procurement networks — have been reluctant to support rapid reform. Any attempt to slow down renewable energy projects for personal, political or commercial gain should be investigated.
Past policy mistakes should also be acknowledged. Higher taxes on solar panels and electric vehicles only discourage investment and increase costs for consumers. If Sri Lanka is serious about clean energy, it cannot treat renewable technology as a luxury good. Solar panels, batteries, inverters and electric vehicles should be seen as strategic economic assets.
The real debate is no longer whether Sri Lanka should move towards renewable energy. That argument is over. Renewable energy is clearly the future.
The real question is whether Sri Lanka can move quickly enough.
If the country acts decisively, renewable energy could reduce electricity prices, improve energy security, attract foreign investment and make Sri Lankan industry more competitive. If it delays, it risks remaining dependent on expensive imports, unstable global fuel markets and outdated infrastructure.
The NPP government has identified the right direction. It must now show that it has the speed, discipline and political courage to turn that direction into reality.