Business
‘Sri Lanka’s renewable energy sector faces severe financial strain as LKR 10 billion in dues remain unpaid’
The Federation of Renewable Energy Developers (FRED) called for urgent government intervention to address a deepening financial crisis in Sri Lanka’s renewable energy sector, following prolonged payment defaults by the National System Operator (Pvt) Limited (NSO) for power already supplied to the national grid. Payments to renewable energy developers have reportedly been suspended since December 2025, with outstanding dues now reaching approximately LKR 10 billion.
The concerns were raised at a press conference hosted by FRED at the Ground Floor Auditorium of The Ceylon Chamber of Commerce, bringing together renewable energy developers and key industry stakeholders to highlight the scale of the issue and its implications for energy security, investor confidence, employment, and the wider financial system.
According to FRED, the payment delays are affecting close to 400 small and medium-scale renewable energy developers and entrepreneurs operating across ground-mounted solar, mini-hydro, wind, biomass, and other renewable energy segments. The affected capacity exceeds 1,000 MW, covering 389 plants with a combined installed capacity of 1,073.9 MW.
FRED noted that renewable energy developers have continued to supply power to the national grid despite the suspension of payments, placing severe pressure on working capital, debt servicing, plant maintenance, and salaries. The Federation warned that continued non-payment could lead to rising non-performing loans in the banking sector, disruption to renewable energy operations, and a gradual reduction in available clean power capacity.
The Federation also raised concerns over the prioritisation of payments for thermal power generation at a time when renewable energy developers remain unpaid. It noted that the cost of thermal generation has increased sharply, while renewable energy producers, who provide comparatively lower-cost and cleaner power, are facing serious liquidity constraints.
FRED stated that this situation has broader implications beyond the renewable energy sector. If unresolved, the crisis could weaken investor confidence in future renewable energy tenders, increase the perceived risk of investing in state-linked energy projects, and undermine Sri Lanka’s long-term clean energy targets.
The Federation called on the Government of Sri Lanka, the Ministry of Finance, the General Treasury, and relevant authorities to take immediate steps to resolve the outstanding payments. It urged Treasury intervention, the allocation of funds specifically for renewable energy developer payments, and a Cabinet-level directive to expedite financial solutions before the sector faces widespread defaults.
FRED emphasised that timely payment for power already supplied is essential to maintain operational continuity across the renewable energy sector and to safeguard the livelihoods connected to it, including technical staff, engineers, electricians, mechanics, administrative employees, and other workers.
The Federation reaffirmed its willingness to work with the government and relevant institutions to support a stable and sustainable energy future for Sri Lanka. However, it stressed that immediate financial relief is necessary to prevent further deterioration of the sector and to protect the country’s renewable energy capacity. (FRED)
Business
Cambridge College honours students at awards ceremony
The Cambridge College of English Language Training recently held a certificate and medal awarding ceremony to recognize the academic achievements of students who successfully completed Cambridge English examinations.
The ceremony was held at the Hindu Cultural Hall in Kandy with the Vice Chancellor of the University of Peradeniya, Prof. W.M.T. Madhujith, attending as the Chief Guest, while Kandy Mayor Chandrasiri Wijenayake participated as the Guest of Honour.
Founded on March 1, 2024, by English tutor, author and Cambridge TKT lecturer T. Ravichandran, the institution has emerged as a leading centre for Cambridge English examination preparation in Kandy.
Beginning with an initial intake of 30 students, the college has expanded rapidly and currently serves more than 300 students.
The institution’s achievements were further recognized when it received the “Emerging Star Award 2025” at the Annual Coordinators Conference 2025 (South Asia).
The college provides training for students between the ages of seven and 18 across six stages of Cambridge English examinations, including Young Learners English (YLE) Starters, Movers and Flyers, as well as KET, PET and FCE examinations.
Cambridge English qualifications are internationally recognized and are designed to assess language proficiency in line with the Common European Framework of Reference for Languages (CEFR).
The ceremony concluded with the presentation of certificates and medals to students in recognition of their academic performance and commitment.
Text and Pic by SK Samaranayake
Business
ABC Australia, Maharaja Media Network ink MoU to expand Indo-Pacific media collaboration
The Australian Broadcasting Corporation (ABC Australia) has signed a Memorandum of Understanding with Sri Lanka’s Maharaja Media Network (MMN), marking a significant expansion of media cooperation aimed at strengthening content exchange, co-productions and professional collaboration across the Indo-Pacific.
The agreement builds on an initial broadcast partnership established in 2022 and an expanded licensing arrangement in 2023, under which ABC programming was made available free-to-air to Sri Lankan audiences through MTV Channel (Private) Limited, part of the Capital Maharaja Group.
Under the new framework, the two organisations will collaborate across television, radio and digital platforms, with a focus on co-produced content, editorial exchange, training opportunities and joint storytelling initiatives.
MMN, Sri Lanka’s largest media network, operates across television, radio, digital media, music and film, including MTV Channel (Private) Limited and MBC Networks (Private) Limited.
Australian High Commission officials described the agreement as a deepening of regional media ties. “This will cover co-production, content sharing and broader cooperation across the Asia-Pacific in telling stories that speak to both countries,” said Matthew Duckworth.
ABC International Head Claire M. Gorman said the partnership reflected a shared commitment to public-interest media and stronger regional storytelling.
Capital Maharaja Group Director Chevaan Daniel said the relationship, which began during Sri Lanka’s economic crisis in 2022, had grown through continued collaboration, including during the 2025 Ditwah cyclone response.
Business
Why Sri Lanka’s SME Apparel Sector Needs a National Sustainable Industries Policy Framework
A clear national sustainable industries framework is becoming essential if Sri Lanka’s SME apparel manufacturers are to cut carbon, adopt renewable energy and remain competitive in global export supply chains.
Sri Lanka’s apparel industry is entering a new phase where export competitiveness will increasingly be measured not only by quality, speed and price, but also by sustainability, carbon performance and supply-chain transparency. For large exporters, this transition is already underway. For small and medium enterprises linked to the apparel value chain, however, the absence of a clear national sustainable industries framework is emerging as a serious policy gap.
SMEs are already central to Sri Lanka’s economy, yet their export contribution remains strikingly low. They account for an estimated 52% of GDP, 45% of employment and more than 75% of businesses, but contribute only around 8% of export earnings. This mismatch matters because many SME firms are deeply connected to the apparel sector as subcontractors, accessories suppliers, printers, washers, packaging providers, logistics firms and specialist service partners.
The implication is clear: if SMEs are not sustainability-ready, the wider apparel supply chain cannot be fully sustainability-ready either. Their weakness becomes a competitiveness risk for the sector as a whole. Sri Lanka’s apparel and textile industry remains one of the country’s strongest export pillars. In 2025, the sector generated US$ 5.30 billion in export revenue, accounted for 40.68% of national export revenue, and supported around 350,000 direct jobs. The industry’s stated ambition is to reach US$ 7 billion in export revenue by 2030.
That target cannot be achieved through volume growth alone. Global buyers in the US, EU and Asian markets are increasingly asking suppliers to prove lower carbon emissions, stronger environmental performance, renewable energy use, waste reduction and traceability across the full value chain. These expectations are moving beyond tier-one exporters and filtering down to SMEs that support production.
This is where the policy gap becomes urgent. Sri Lanka still lacks a practical, SME-focused National Sustainable Industries Policy Framework that gives smaller manufacturers a clear roadmap on how to measure emissions, improve energy efficiency, adopt renewable energy, access green finance and prepare for future buyer compliance requirements.
Without such a framework, the country risks creating a two-speed apparel industry: large firms that can meet evolving buyer requirements, and smaller firms that are gradually excluded from high-value supply chains. That would weaken inclusive growth, reduce the ability of SMEs to participate meaningfully in export expansion and undermine the country’s broader industrial ambitions.
The solution is not a narrow environmental policy but a competitiveness strategy. A National Sustainable Industries Policy Framework for SME manufacturers should rest on five pillars. First, it should establish a 2030 roadmap aligned with Sri Lanka’s export ambitions. Second, it should introduce practical tools that help SMEs measure emissions, energy use, water use and waste without depending on expensive consultants. Third, it should expand access to concessional green finance and tax incentives for rooftop solar, efficient machinery, wastewater treatment and cleaner production systems. Fourth, it should provide technical training through agencies, banks, industry bodies and development partners. Fifth, it should create a recognition or certification pathway that allows SMEs to demonstrate progress to international buyers.
Renewable energy should be at the center of this effort. For SMEs, sustainability should not be framed only as a compliance burden. It should be presented as a cost-reduction and competitiveness strategy. Lower energy bills, more efficient production systems and stronger environmental credentials can improve margins while making firms more attractive to buyers.
The benefits would extend beyond SMEs themselves. Larger exporters would gain from a stronger supplier base, buyers would gain greater confidence in Sri Lanka’s supply-chain readiness, and the country would strengthen its reputation as a credible source of ethical and sustainable apparel.
A National Sustainable Industries Policy Framework is therefore not just an environmental initiative. It is an export competitiveness strategy, an SME development strategy and a supply-chain resilience strategy. For Sri Lanka’s SME apparel sector, sustainability is no longer optional. It is becoming the language of market access, buyer confidence and long-term industrial survival.
By Nishantha Bakmeege President, Sri Lanka Chamber of Garment Exporters (SLCGE)
-
News7 days agoAll-New GRAVITE launches at LKR 6.99 Mn
-
Features7 days agoThe NPP’s pivot to the past
-
News6 days agoPolice probe underway to ascertain links between criminals deported from UAE and local politicians
-
News5 days agoEaster Sunday carnage: Court told Maulana’s statement cannot be accepted without cross-examination
-
Features7 days agoEnd of Peacekeeping
-
Opinion5 days agoUndermining the democratic political framework
-
News5 days agoUK passport holder hiding here wants to have deportation order rescinded to leave without blemish
-
Features2 days agoThe Division Bell Mystery
