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Ravi warns of severe impact from renewable energy policy shifts
Colombo, July 9 (Daily Mirror) - UNP MP Ravi Karunanayake yesterday (08) warned in Parliament that Sri Lanka’s renewable energy sector risks collapse if the government’s recent tariff reductions and withdrawal of duty concessions are not urgently reviewed.
Raising a series of questions to the Minister of Power and Energy, Karunanayake said the sudden reduction in feed-in tariffs offered to solar and wind power producers, alongside the removal of tax concessions for battery imports, has seriously damaged investor confidence and jeopardised bank financing for ongoing and upcoming projects.
He cautioned that these decisions send a negative signal to both local and international investors, undermining Sri Lanka’s stated goal of achieving 70% renewable energy by 2030.
Furthermore, Karunanayake questioned whether proper stakeholder consultations were held and whether the economic viability of existing projects and the exposure of banks were properly assessed before these moves were made.
Highlighting the broader consequences, he warned that this policy backtracking could derail public–private partnerships in clean energy, increase dependence on costly fossil fuels, and weaken the country’s energy security and climate commitments.
As such, Karunanayake urged the government to clarify its real intentions and consider reinstating the earlier tariff rates or introducing a transparent, predictable pricing formula to restore investor confidence.
He also called for the immediate restoration of duty concessions for battery imports, stressing that the viability of renewable energy projects hinges on affordable energy storage solutions.
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