Business

GREAT 2025–2030: Sri Lanka’s Green ambition meets a grid reality check

Published

3 weeks ago

2026/02/7

Sri Lanka’s Renewable Energy Project Development Plan, branded GREAT 2025–2030 (Green Energy Acceleration Targets), reads like a confident pivot toward a cleaner, cheaper power system. With more than 2,600 MW of new renewable capacity planned—dominated by solar and wind—and a strong push on storage and grid stabilisation, the strategy signals intent. Yet beneath the headline numbers lies a harder business truth: generation is racing ahead of the grid, and unless infrastructure and control catch up fast, value will leak from an otherwise compelling transition.

At the core of GREAT is scale. Solar leads with 1,571 MW across multiple zones, while wind contributes 1,004 MW, primarily from Mannar, Kilinochchi and the North-Western belt.

Smaller but steady additions are planned in mini-hydro (51 MW) and biomass (38 MW). On paper, the mix lowers marginal costs, cuts imports, and insulates the economy from fuel price shocks—outcomes financiers and policymakers both welcome.

But a senior retired electrical engineer, who spent decades inside Sri Lanka’s power system, cautions that capacity alone doesn’t create reliability—or returns.

“We are adding megawatts faster than we are adding visibility and control,” he said. “Rooftop solar has already exceeded 1,350 MW, much of it invisible to operators. From a grid perspective, that is unmanaged generation, and unmanaged generation is risk.”

The business implications are immediate. Transmission bottlenecks, particularly delays in 220 kV and 400 kV lines, are constraining renewable evacuation. Projects commissioned on time can still face curtailment, eroding project IRRs and shaking investor confidence.

At the same time, electricity demand has softened amid economic pressures, compressing the system’s ability to absorb intermittent power—especially on Sundays and holidays, when demand dips but solar output peaks.

“Low demand days are now the stress test,” the engineer noted. “Without storage and grid-forming assets, you’re forced to back down renewables or keep thermal units running for stability. Both options cost money.”

GREAT attempts to address this with 650 MW / 2,250 MWh of Battery Energy Storage Systems (BESS) and 600 MW of pumped storage at Maha Oya by 2034, alongside synchronous condensers to maintain inertia. These are not optional add-ons; they are value enablers. Storage smooths volatility, captures excess midday solar, and shifts energy to peak hours—turning stranded electrons into bankable revenue.

Yet timing matters. Storage, controls, and transmission must arrive before or with new generation. Otherwise, developers face curtailment risk, lenders price in uncertainty, and tariffs fail to fall as promised.

The plan’s institutional fixes are equally commercial. A Renewable Energy Control Desk (from 2026), Distribution Control Centers in high rooftop solar areas, smart meter mandates, and grid digitalisation are designed to restore operational visibility. Time-of-use tariffs, paired with daytime EV charging and industrial load-shifting, aim to reshape demand—turning a system problem into a market opportunity.

“Tariffs are signals,” the engineer said. “If you want power used at noon, price it right. If EVs and factories move load to the day, solar becomes an asset, not a headache.”

For investors, the message is nuanced but clear. Sri Lanka’s renewable pipeline is real and sizeable.

The policy direction favours clean energy, and the cost curve is attractive. However, project bankability will increasingly hinge on grid-readiness—access to storage, firm evacuation paths, and participation in smart, controllable networks.

For policymakers, GREAT’s success will be measured not by megawatts announced, but by megawatt-hours delivered reliably and profitably. Accelerating transmission approvals, fast-tracking BESS procurement, and enforcing smart metering for distributed generation are the difference between a virtuous transition and a congested one.

“The transition is inevitable,” the engineer concluded.

“The question is whether we do it cheaply and safely, or pay twice—once for generation, and again for the fixes we delayed.”

GREAT 2025–2030 sets Sri Lanka on the right path. The business case now depends on execution—where grids, markets, and management must move at the same speed as ambition, he added.

By Ifham Nizam

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Business

Binance signals a maturing Crypto pitch in Sri Lanka

Published

10 hours ago

2026/02/28

Thilina Walpola

The community at the event

Frames crypto investing as a ‘measured journey rooted in knowledge and security’

In an industry often characterised by velocity, volatility and viral marketing, Binance’s latest community activation in Sri Lanka suggested a deliberate recalibration of its investor messaging.At its #BinanceHODLove event held at One Galle Face Mall, the world’s largest crypto exchange by trading volume chose a Valentine’s-themed slogan that stood out for its restraint: “Real Love Doesn’t Rush, Neither Should Crypto: A Valentine’s Message for Smart Investors.”

Behind the seasonal branding lies a more strategic theme – one that aligns with the crypto industry’s post-cycle shift toward compliance, literacy and risk awareness.

Sri Lanka’s retail investor base has demonstrated periodic interest in digital assets, particularly during phases of currency pressure and global crypto rallies. Yet market participation has also exposed gaps in financial literacy and susceptibility to high-yield promises.

Binance’s messaging at the event leaned heavily into investor caution. Participants were reminded to scrutinise unsolicited offers, avoid guarantees of quick returns, and protect sensitive information such as private keys and passwords. In a market where informal crypto schemes have occasionally surfaced, such emphasis reflects reputational risk management as much as community engagement.

The company also spotlighted Binance Academy, its educational platform, positioning knowledge acquisition as foundational to long-term participation in blockchain ecosystems.

While the event featured raffles and consumer electronics giveaways to drive footfall, the broader objective appeared to be brand consolidation at the grassroots level. Physical activations in high-traffic urban centres suggested a hybrid strategy: digital scale complemented by localised trust-building.

For a global exchange operating in increasingly scrutinised regulatory environments, nurturing responsible retail participation is both a defensive and expansionary move. By framing crypto investing as a “measured journey rooted in knowledge and security,” Binance is aligning itself with the industry’s pivot toward sustainability rather than speculative exuberance.

The subtext of the campaign was clear: growth in emerging markets like Sri Lanka will depend less on price momentum and more on credibility.

Binance’s Valentine’s message, therefore, may be less about romance and more about risk calibration. In that sense, the slogan captured a broader industry truth: endurance, not impulse, will define the next phase of digital asset adoption.

By Sanath Nanayakkare

Business

Unlisted tax jitters frizzle CSE rally; analysts flag spillover fears

Published

11 hours ago

2026/02/28

Thilina Walpola

Morning gains on the Colombo Stock Exchange (CSE) evaporated sharply in afternoon trade yesterday, as a wave of nervous selling swept through the market triggered by speculation that the government is mooting a fresh 10-15 percent tax on unlisted corporates. Although the proposed levy is currently targeted at entities outside the CSE purview, market participants grew wary that the measure could signal a broader shift in fiscal policy, stoking fears of future tax hikes that may eventually engulf listed companies and dent corporate earnings.

Amid those developments, the turnover was capped at a mere Rs 369 million despite fourteen crossings.

The top seven crossings mainly contributed to the turnover were Commercial Bank 1.60 million shares crossed to the tune of Rs 359.7 million and its share price traded at Rs 223, Renuka Foods 2.7 million shares crossed to the tune of Rs 179.6 million and its share price traded at Rs 63.50, LOLC Holdings 300,000 shares crossed to the tune of Rs 171.9 million and its share price traded at Rs 573, Sampath Bank 821,000 shares crossed to the tune of Rs 132 million and its share price traded at Rs 161, Commercial Bank (Non-Voting) 484,000 shares crossed to the tune of Rs 98.9 million and its share price traded at Rs 204, Sierra Cables two million shares crossed to the tune of Rs 69.6 million and its share price traded at Rs 34.80 and Citizens Developments Business Bank (Non-Voting) 200,000 shares crossed to the tune of Rs 62.9 million and its share price traded at Rs 324.

In the retail market top seven companies that have mainly contributed to the turnover were Renuka Agri Rs 1.14 billion (82.4 million shares traded), Softlogic Finance Rs 653.9 million (115 million shares traded), Sampath Bank Rs 270.8 million (1.65 million shares traded), Softlogic Capital Rs 230 million (19.3 million shares traded), JKH Rs 201 million (nine million shares traded) ,LOLC Holdings Rs 171.9 million (297,000 shares traded) and LMF Rs 171 million (1.8 million shares traded). During the day 369 million shares volumes changed hands in 39059 transactions.

It is said that banking and agriculture related companies performed well. In the banking sector Sampath Bank and Commercial Bank performed well. Further manufacturing sector especially JKH also significantly active in the market.

By Hiran H Senewiratne

Business

ComBank loan book grows by Rs. 541bn to top Rs. 2tn

Published

11 hours ago

2026/02/28

Thilina Walpola

The Commercial Bank of Ceylon achieved another performance milestone in 2025, becoming the first private sector bank in the country to expand its loan book beyond Rs. 2 Tn., with a growth of Rs. 541 Bn. over 12 months at a monthly average of over Rs. 45 Bn., demonstrating its commitment to national economic resurgence.

Recording the highest annual loan growth in absolute terms in the history of the institution, the Bank said gross loans and advances for the year ending 31st December 2025 grew by 36.37% to Rs. 2.028 Tn., taking total assets to Rs. 3.258 Tn. This reflected an increase of Rs. 468 Bn. or 16.78% and demonstrated more than double the growth recorded in 2024. The Bank’s net assets value per share improved to Rs. 198.30 from Rs. 170.94 at end 2024.

Deposits grew by 16.65% or Rs. 372 Bn. over the 12 months to end the year at Rs. 2.6 Tn., reflecting an average deposit growth of over Rs. 30 Bn. per month despite relatively lower interest rates, the Bank said. The CASA ratio of the Bank, which is considered to be the industry’s best, stood at 39.65% from 38.07% as at 31st December 2024.

Sharhan Muhseen, Chairman of Commercial Bank said: “We remain focused on the fundamentals that sustain shareholder value: earnings resilience, balance sheet strength, disciplined risk management and a strategy that is responsive to evolving customer and market needs. Our 2025 performance affirms the value of that focus.”

Sanath Manatunge, Managing Director/CEO of Commercial Bank said: “In 2025, we proved that scale and discipline can move together, growing lending and accelerating digital activity while strengthening asset quality and balance sheet resilience.”

In a filing with the Colombo Stock Exchange (CSE) the Bank said it recorded gross income of Rs. 354.81 Bn. for the year ending 31st December 2025 reflecting growth of 13.70% over the normalised figure for 2024, after adjusting for the impacts of restructuring of Sri Lanka International Sovereign Bonds (SLISBs) accommodated in that year, in order to avoid potential distortion of growth figures. Net gains / (losses) from derecognition of financial assets in the Income Statement for 2024 (as reported) included a derecognition loss on restructuring of SLISBs amounting to Rs. 45.108 Bn.