The government has launched an ambitious drive to attract global investment into green hydrogen and green ammonia production, a move expected to reshape the country’s energy landscape, generate billions of dollars in foreign direct investment and establish the island as a strategic clean energy hub in the Indian Ocean.

In a significant development, the Government has extended the deadline for investors to submit Expressions of Interest under its Request for Information (RFI) process until June 19, 2026, reflecting growing international interest in Sri Lanka’s emerging green energy sector.

The initiative, spearheaded through the Board of Investment (BOI), in collaboration with key energy sector institutions, covers large-scale green hydrogen and ammonia production facilities, export terminals, storage infrastructure and the manufacture of hydrogen-related equipment.

Senior Government officials said the programme is closely aligned with Sri Lanka’s long-term economic transformation agenda and global commitments to low-carbon development.

“The world is undergoing a historic energy transition. Countries that position themselves early in the green hydrogen value chain will become major beneficiaries of future energy trade. Sri Lanka possesses exceptional renewable energy resources and a strategic maritime location that provides a strong foundation for such investments,” an energy sector official said.

Industry experts note that global demand for green hydrogen and ammonia is expected to increase dramatically over the next two decades as nations seek alternatives to fossil fuels in power generation, heavy industry, shipping and aviation.

Sri Lanka’s extensive wind resources, particularly in the Northern and North-Western regions, combined with abundant solar potential, place the country among the promising destinations for renewable-energy-based hydrogen production in Asia.

Officials said the projects could unlock substantial investments in solar and wind power generation, resulting in thousands of megawatts of new renewable energy capacity, while supporting national energy security objectives.

The proposed developments are expected to generate thousands of direct and indirect employment opportunities in engineering, information technology, logistics, construction, manufacturing and research sectors.

Economic analysts believe the initiative could provide Sri Lanka with a new export industry capable of earning significant foreign exchange revenues at a time when countries around the world are actively seeking reliable suppliers of green fuels.

“The global hydrogen economy is projected to become a multi-trillion-dollar industry. Even securing a small share of this market could bring transformative economic benefits to Sri Lanka,” a senior industry source observed.

Another major advantage lies in reducing the country’s dependence on imported fossil fuels and fertiliser-related inputs.

Experts say green ammonia, produced locally, could eventually support agricultural and industrial applications while helping reduce expenditure on imported products. Likewise, green hydrogen could emerge as an important energy carrier for future transport, industrial and power generation needs.

Officials further stressed that Sri Lanka’s strategic location, along one of the world’s busiest east-west shipping routes, offers an unparalleled opportunity to develop green fuel bunkering facilities for international vessels.

As the global maritime industry moves towards decarbonisation, ports capable of supplying low-carbon fuels are expected to gain considerable competitive advantages.

The BOI has assured prospective investors of investment facilitation services, infrastructure support, fiscal incentives and assistance with regulatory processes to accelerate project implementation.

Energy policymakers view the initiative as more than an investment promotion exercise. They see it as a pathway to modernising Sri Lanka’s industrial base, attracting advanced technologies, enhancing energy independence and strengthening long-term economic resilience.

Observers note that successful implementation could position Sri Lanka among the early movers in South Asia’s green hydrogen revolution, transforming the country from a net energy importer into a future exporter of clean energy products.

With global investors increasingly searching for stable locations to establish green energy projects, Sri Lanka is seeking to leverage its geographical advantages and renewable energy resources to secure a place in the rapidly evolving clean energy economy.

The coming months are expected to reveal the scale of investor interest in what could become one of the largest and most consequential energy developments in the nation’s history.

By Ifham Nizam