Business
Smart technologies and innovative solutions seen as vital to SL’s stepped-up solar power capability

By Ifham Nizam
Sri Lanka has achieved much in the solar energy industry sphere. However, the challenges lie ahead, said Prof. Asanka Rodrigo, electrical engineering expert from the University of Moratuwa. ‘As the country moves towards a future powered by renewable energy, smart technologies and innovative solutions will be key to ensuring that solar power plays a central role in its energy transition, he explained.
‘With a commitment to sustainability and collaboration between academia, industry, and government, Sri Lanka is well on its way to a brighter, greener future, Rodrigo said.
Speaking at the merger which took place at the Hilton Residences in Colombo, last week, between EPPC and SunGro, two leading brands in the solar industry, Rodrigo, a long-time academic and industry expert, stressed Sri Lanka’s growing commitment to renewable energy, particularly solar power and outlined the country’s ambitious targets for the future.
Rodrigo added: ‘Sri Lanka has committed to achieving net-zero carbon emissions by 2050, with a firm goal of sourcing 70% of its energy from renewable resources by 2030. Solar energy is a central part of this transition. There has been significant growth in solar power generation over the past decade.
‘Sri Lanka’s commercial solar power generation began modestly with off-grid systems in the 1980s. The introduction of the “mid-metering” scheme in 2009 marked the beginning of a rapid expansion in the industry. By 2016, Sri Lanka had only achieved 30 MW of solar capacity, but government initiatives, such as the “Surya Bala Sangramaya,” accelerated this growth. Targets of 200 MW by 2020 and 1,000 MW by 2025 were set and Sri Lanka has already surpassed these milestones, achieving 1 GW of solar capacity by July 2024.
‘The next phase of growth would be far more ambitious. By 2030, Sri Lanka aims to have 4,700 MW of solar power, more than four times its current capacity. This would require an annual increase of 500–600 MW, which, while challenging, is achievable if the industry continues to grow at its current pace.
‘To meet this target, the solar sector will need to diversify and expand in three main areas:
‘Solar rooftops: A growing segment in the residential and commercial sectors.
‘Ground-mounted projects: Large-scale installations producing 50 MW, 100 MW, or more, with some projects even aiming for 700 MW.
‘Floating solar projects: An emerging field, with pilot projects already underway in Hambantota, utilizing underused lakes and reservoirs.
‘Standards such as BS 7671 and IEC have adapted to these changes. The new generation of solar installations must consider complexities like multidirectional power flow, battery storage, electric vehicle (EV) chargers and advanced communication systems. Additionally, hybrid systems combining solar power with battery banks and grid connectivity are becoming more common and inverters are being classified as grid-forming or grid-following, reflecting their increasing complexity.
‘As solar energy systems become more integrated with the grid, new protection mechanisms are required to ensure safety and efficiency. For instance, anti-islanding protections, low voltage ride-through (LVRT) and other fault response technologies are essential to maintain grid stability.
‘Proper planning and technical expertise is essential in meeting Sri Lanka’s ambitious solar targets. While the challenges are significant, advancements in technology, coupled with government support and industry collaboration, can help the country achieve its renewable energy goals and create a more sustainable future.’
From E.B. Creasy Solar were S.D.R Arudpragasam, chairman, Sanjeev Rajaratnam, Managing Director, Isuru Lekamge, Chief Operating Officer, Eksath de Alwis, Sales Manager and Howard Fu, Director of SUNGROW Power Supply Co., Ltd was also in attendance with the SUNGROW team.
The event also saw the participation of key figures from Sri Lanka’s energy industry, including, Ranjith Sepala, chairman, Sri Lanka Sustainable Energy Authority (SLSEA) and Nalinda Ilangakoon, chairman, Ceylon Electricity Board. Additionally, SLSEA-registered solar PV service providers were present, to mark this significant milestone for the industry.
Business
Dialog delivers strong FY 2024 performance with 10% Core Revenue Growth

Dialog Axiata PLC announced, Friday 14th February 2025, its consolidated financial results for the year ended 31st December 2024. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).
The Group delivered a strong performance across Mobile, Fixed Line, Digital Pay Television and Teleinfrastructure businesses recording a positive core Revenue growth of 10% Year to Date (“YTD”). Group Headline Revenue reached Rs171.2Bn down 9% mainly resulting from a conscious scaling down of low margin international wholesale business amounting to Rs24.3Bn. The Q4 2024 Revenue was recorded at Rs45.8Bn up 7% Quarter-on-Quarter (“QoQ”) and 6% Year-on-Year (“YoY”). The Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) reached Rs66.3Bn up 8% YTD supported by Core Revenue performance and Cost Rescaling Initiatives. On a QoQ basis Group EBITDA demonstrated a strong growth to record at Rs21.2Bn up 18% QoQ with an EBITDA margin of 46.3% as Cost Rescaling Initiatives yielded positive results. Group EBITDA margin reached 38.7% for FY 2024, up 5.4pp.
Group Net Profit After Tax (“NPAT”) reached Rs12.4Bn for FY 2024 down 38% YTD mainly resulting from significant forex gains recorded in prior year. Normalized for forex impact, NPAT decline was limited to 12% YTD to recorded at Rs8.7Bn, due to dilution from Airtel (Rs2.2Bn) and higher taxation (Rs1.1Bn). On a QoQ basis NPAT grew 51% to reach Rs6.8Bn resulting from strong EBITDA performance and lower finance cost.
Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs47.3Bn to the Government of Sri Lanka (GoSL) during FY 2024. Total remittances included Direct Taxes and Levies amounting to Rs10.6Bn and Rs36.7Bn in Consumption Taxes collected on behalf of the GoSL.
In line with the dividend policy and financial performance of the Group and taking into account the forward investment requirements to serve the nation’s demand for Broadband and Digital services, the Board of Directors of Dialog Axiata PLC at its meeting held on 14th February 2025, resolved to propose for consideration by the Shareholders of the Company, a dividend to ordinary shareholders amounting to Rs1.00 per share. The said dividend, if approved by shareholders, would translate to a Dividend Yield of 8.5% based on share closing price for FY 2024. The dividend so proposed will be considered for approval by the shareholders at the Annual General Meeting (AGM) of the Company, the date pertaining to which would be notified in due course.
Business
Govt to establish a Development Bank within existing state banking framework

Rs. 1,000mn fund for commercialization of research and innovation
By Sanath Nanayakkare
Presenting the inaugural budget of the new NPP government, President Anura Kumara Dissanayake announced yesterday the establishment of a new Development Bank aimed at supporting SMEs and new entrepreneurs. This initiative will provide them with access to funding without the need for collateral-based lending from commercial banks.
“The development of small and medium-scale enterprises (SMEs) and entrepreneurship is a key objective of the government. One of the biggest challenges faced by small and medium-scale entrepreneurs and rural entrepreneurs over a long period is access to finance. The primary obstacle to accessing finance is the collateral-based lending culture, which has hindered a significant portion of entrepreneurs from obtaining the necessary funds. Banks must protect the interests of their depositors and ensure the rationality of their lending practices, while also providing solutions for small and medium-scale entrepreneurs and new entrepreneurs,” he said.
“To address this, the government is working towards establishing a development bank. As a first step, the operations of the Development Bank will be established through a new administrative structure within the existing state banking framework. The government will support this initiative through the National Credit Guarantee Institution (NCGI), which will provide credit guarantees to facilitate access to finance,” he noted.
Speaking about innovation and entrepreneurship development the President said,” Research institutions, universities, state institutions, the private sector, and the National Intellectual Property Organization (NIPO) are collaborating with various stakeholders to implement research and development projects that address the needs of innovation and entrepreneurship. Priority will be given to the following areas:
“Co-financing for selected research and development initiatives.
“Strengthening linkages between state research and development institutions, relevant universities, and Sri Lankans engaged in similar fields globally.
“Facilitating exporters to obtain international brand protection through the Madrid Protocol.
“In 2020, 272 patents were registered, of which 223 were by non-residents. In 2019, Sri Lanka was ranked 61st in terms of patent applications. We observe that several research initiatives have been commercialized, contributing to public welfare and creating investment opportunities. Therefore, a strong institutional mechanism is needed to mainstream research with commercial potential. To this end, we propose allocating Rs. 1,000 million to establish a fund for the commercialisation of research and innovation.”
Business
CBSL reaffirms commitment to economic recovery

By Ifham Nizam
The Central Bank of Sri Lanka (CBSL) has reaffirmed its commitment to stabilizing inflation and supporting economic recovery through a carefully calibrated monetary policy stance. The February 2025 Monetary Policy Report (MPR) outlines key trends in inflation, interest rates and economic growth, offering insights into the nation’s financial future.
To enhance awareness on the report, the Bank hosted two discussions chaired by Assistant Governor Dr. Chandranath Amarasekere, with expert insights from the Director of the Economic Research Department, Directors of the Monetary Policy Committee and technical teams of the Economic Research Department.
The CBSL maintained its accommodative monetary policy throughout 2024, with a notable rate cut in November when it introduced a single policy rate mechanism—the Overnight Policy Rate (OPR)—set at 8.00%. This move effectively reduced interest rates by 50 basis points, a decision aimed at spurring economic activity while keeping inflation in check.
The monetary easing strategy aligns with the CBSL’s broader objective of anchoring inflation expectations, enhancing transparency and fostering financial market stability. As of January 2025, the OPR remains at 8.00%, signaling the bank’s confidence in its current approach.
Sri Lanka experienced deflation in the second half of 2024, driven largely by reduced electricity tariffs, lower fuel prices, and declining food costs. Since September 2024, headline inflation has remained in negative territory, reflecting a sharp drop in consumer price levels.
Looking ahead, the CBSL projects inflation to stabilize around 5% over the medium term. However, short-term risks remain. Inflation may temporarily exceed the target between late 2025 and mid-2026 before normalizing.
The report highlights several key risks to inflation:
Upside risks: Rising global food and energy prices, potential currency depreciation and unpredictable fiscal policies could push inflation higher.
Downside risks: Further price reductions in essential goods and energy could extend the deflationary trend.
The Sri Lankan economy is on a recovery path, albeit at a moderate pace. The CBSL acknowledges that the economy is operating below full capacity, with growth dependent on policy measures and external factors.
Key risks to growth include:
Labour shortages due to brain drain
Uncertain global economic conditions
Impact of climate change on agriculture
Conversely, debt restructuring and tourism recovery could provide much-needed economic momentum.
Despite statistical evidence of falling prices, many Sri Lankans do not feel a significant improvement in their cost of living. The report suggests this disconnect stems from:
Past inflation episodes, which have left prices elevated despite recent declines.
Income levels lagging behind inflation trends, reducing purchasing power.
Psychological and behavioral factors, where consumers may not perceive small price reductions as meaningful relief.
The CBSL’s focus remains on managing inflation expectations, ensuring financial stability, and supporting economic growth. While the current outlook suggests a gradual recovery, external shocks and domestic challenges could still pose risks.
As Sri Lanka navigates its economic future, policy consistency, fiscal discipline, and structural reforms will be critical in achieving long-term stability.
With inflation stabilizing and monetary policy remaining accommodative, the CBSL appears confident in its strategy. However, whether these measures translate into real economic relief for the public remains to be seen.
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