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‘Policy flip-flops and grid woes jeopardise green transition’

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Sri Lanka’s renewable energy puzzle

Sri Lanka’s ambitious renewable energy transition stands at a precarious juncture, caught between political promises and policy paralysis. A sudden government decision to slash rooftop solar tariffs has triggered alarm among businesses and investors, exposing deeper systemic flaws in the nation’s energy strategy. The Island spoke with Dr. Lakmal Fernando (NCCSL Power & Energy Committee Chairman) and Dr. Vidhura Ralapanawe (Energy Analyst) to dissect the crisis.

Q: The NCCSL termed recent solar policy changes “disastrous.” What’s the fallout?

A. The SME sector—the backbone of Sri Lanka’s renewable drive—faces existential threats. Over 800 solar firms employing 50,000+ workers (with 200,000 dependents) risk collapse, jeopardizing maintenance for 100,000+ rooftop installations. Worse, abandoning rupee-denominated solar projects for dollar-based power agreements will escalate electricity costs as the rupee depreciates post-2027. This isn’t just energy policy – it’s economic suicide.

Q: Is the 70% renewable target by 2030 still viable?

A: The government’s rhetoric clashes with reality. While the NPP pledged accelerated green targets, Energy Ministry officials publicly disavowed the 70% goal, provoking ADB’s ire. Appointing anti-renewable voices like Dr. Siyambalapitiya at CEB accelerated the backslide, baselessly blaming solar for blackouts, arbitrarily curtailing renewables without compensation, and freezing net metering. Investor confidence has evaporated, risking $250mn in climate financing.

Q: Are grid limitations the true bottleneck?

A: Absolutely. Chronic underinvestment and incompetence plague grid planning. Fixable issues like transmission protection settings and retrofitting idle gas turbines remain ignored. Despite 2022 plans for 300MW battery storage, not a single tender has materialized. CEB’s belated 150MW storage proposal is a band-aid on a hemorrhage. This isn’t technical failure – it’s institutional sabotage.

Q: How do policy reversals impact forex?

A: Fossil fuel interests are the clear winners. Every delayed renewable project forces reliance on imported coal and diesel—like the new Rs. 72/kWh oil plant. This isn’t just environmentally regressive; it’s a fiscal time bomb.

Q: Is CEB guiding evidence-based policymaking?

A: CEB’s leadership is steeped in engineering but devoid of managerial expertise. It prioritises monopoly preservation over national interest. Their “solutions” (like uncompensated curtailments) betray ignorance of both engineering and economics. The Ministry, meanwhile, turns a blind eye to renewable sector collapse.

Q: Can Sri Lanka modernise without foreign expertise?

A: Current leadership can’t even diagnose problems, let alone solve them. We need international partners for grid planning and management – perhaps even imported executives to overhaul this dysfunctional monopoly.

Q: What are your top reform recommendations?

Mindset shift: Stop treating renewables as a threat.

Policy consistency: Align actions with climate commitments.

Grid modernization: Urgent system-strength assessments and storage deployment.

Execution rigor: Plans mean nothing without implementation.

Sector unbundling: Break CEB’s stranglehold to empower regulators.

Leadership overhaul: The crisis demands technocrats who understand energy and economics.

Q. What’s the Bottom Line:

A. Sri Lanka’s energy future hinges on choosing between vested interests and visionary reform. With each misstep, the window for a just transition narrows, and the spectre of perpetual power crises grows darker.

By Sanath Nanayakkare



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President briefs Sri Lankan delegation leaving for tariff related discussions in Washington

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A Sri Lankan delegation is set to participate in discussions in Washington, D.C., focusing on tariff-related matters, following an invitation extended by the Office of the United States Trade Representative (USTR). This is the second in-person meeting aimed at ongoing efforts to strengthen bilateral trade relations between the two nations.

This initiative builds on several prior virtual interactions held between the USTR and Sri Lankan officials, and underscores a commitment to deepening economic ties. The upcoming talks are anticipated to explore avenues for enhancing trade cooperation and securing favourable outcomes for Sri Lanka, in light of current economic priorities.

Ahead of the visit, a high-level meeting was convened today under the leadership of President Anura Kumara Disanayake to ensure the country’s interests are well represented. The discussion focused on aligning the delegation’s approach with Sri Lanka’s broader economic strategy, ensuring the best possible outcomes from the upcoming discussions.

Key participants at the meeting included Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma; Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A. Vimalenthirarajah; Duminda Hulangamuwa, Senior Economic Advisor to the President; Governor of the Central Bank Dr. Nandalal Weerasinghe; Secretary to the Ministry of Finance, Planning and Economic Development K.M.M. Siriwardana; Nirmal Vigneshwaran, representing the Attorney General’s Department; and Dharshana Perera from the Ministry of Foreign Affairs.

Details of the discussions in Washington are expected to be made available following the conclusion of the meetings.

[PMD]

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“Tourism Renaissance 2025” launched under the patronage of president

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Sri Lanka’s largest tourism exhibition, “Tourism Renaissance 2025” (Sancharaka Udawa 2025), was inaugurated on Friday (23) at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo under the patronage of President Anura Kumara Disanayake.

Organized jointly by the Sri Lanka Tourism Promotion Bureau (SLTPB) and the Sri Lanka Association of Inbound Tour Operators (SLAITO), this event brings together key stakeholders across the tourism industry. It offers a valuable platform for small and medium-scale enterprises, as well as individuals aspiring to enter the tourism sector, to connect with market opportunities and showcase their products and services.

The two-day exhibition, which ends on Saturday [24], features 250 trade stalls and includes participation from a wide range of sectors such as hotels, tour operators, airlines, service providers and educational institutions.

Speaking at the opening ceremony, Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath stated that the government has declared 2025 the “Year of Tourism Renaissance,” with plans to generate USD 5 billion in revenue from the tourism sector by the end of the year.

Also in attendance at the opening ceremony were Secretary to the Ministry of Foreign Affairs, Foreign Employment and Tourism Aruni Ranaraja, SLAITO Chairman Nalin Jayasundara, SLTPB Chairman Buddhika Hewawasam and a distinguished group of invitees including the Ambassador of Germany to Sri Lanka.

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‘Be Part of the Plan’ – Sri Lanka’s theme for International Day for Biological Diversity

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Sri Lanka celebrated International Day for Biological Diversity with a vibrant national event at the Popam Arboretum in Dambulla, centering on the theme “Be part of the Plan.” The celebration, attended by students, researchers, community members, and officials, was led by Minister of Environment Dr. Dhammika Patabendi, who emphasized the country’s commitment to preserving biodiversity and promoting sustainable development.

Delivering the keynote address, Minister Patabendi said, “As a government, we are committed to taking every possible step to protect our ecosystems and biodiversity. But this is not the responsibility of the government alone. It is a shared responsibility—one that requires the active participation of every citizen.”

The event highlighted the value of community involvement in conservation and featured a series of exhibitions and talks focused on sustainable tourism, traditional food systems, and environmental education. Locally sourced underutilized fruits and indigenous foods were displayed and shared by communities, underscoring the deep ties between biodiversity and traditional knowledge.

The celebration also featured two major guest lectures. Professor Cyril Wijesundara spoke on the current status of biodiversity in Sri Lanka, while Professor Gamini Pushpakumara presented on the promotion of underutilized food crops—a key element in ensuring food security and sustainability in the face of climate change.

“This is more than a celebration,” Minister Patabendi told journalists at the event. “It’s a reminder that sustainable development must go hand-in-hand with nature. We need to build our future with the forest, not against it.”

By Ifham Nizam

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