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Sri Lanka urged to strengthen renewable energy framework amid fossil fuel reliance

Policy experts argue Sri Lanka must adopt more transparent and equitable approaches to renewable energy development. The country has built a foundation through small hydropower and rooftop solar schemes, but faces questions about resource allocation and energy strategy.

LSN Sri Lanka · 2 October 2026

Sri Lanka's renewable energy sector has expanded significantly over recent decades, with small hydropower projects and residential rooftop solar installations demonstrating the potential for distributed electricity generation. Thousands of households and businesses have been able to participate in power production through these programmes, contributing to the nation's energy mix.

However, energy analysts contend that the current policy framework lacks sufficient transparency and fairness in how renewable projects are developed and prioritized. Questions have been raised about the balance between renewable investments and the country's continued reliance on imported fossil fuels for electricity generation.

The concerns reflect broader debates about Sri Lanka's energy strategy, particularly as the country seeks to reduce its dependence on imported fuel while building sustainable power generation capacity. Stakeholders argue that clearer, more equitable policies could accelerate the transition toward renewables while ensuring that investments benefit the broader public interest.

Renewable energy development remains a key component of Sri Lanka's energy security objectives, with both government incentives and private sector participation playing important roles. Experts suggest that refining the regulatory and policy environment could unlock greater potential for hydropower, solar, and other clean energy sources while strengthening the sector's long-term viability.