Former Deputy Leader of the United National Party (UNP), MP Ravi Karunanayake, has issued a strong warning that Sri Lanka’s renewable energy sector is on the brink of collapse if the government fails to urgently review recent tariff reductions and the withdrawal of key concessions.
Raising the issue in Parliament, Karunanayake directed several questions to the Minister of Power and Energy, expressing concern over the sudden cut in feed-in tariffs for solar and wind energy producers, along with the removal of tax concessions for battery imports. He said these moves have shaken investor confidence and jeopardized access to bank financing for both ongoing and future clean energy projects.
“These policy decisions not only contradict the government’s commitment to achieving a 70% renewable energy target by 2030, but they also send a negative signal to local and foreign investors,” he stated.
Karunanayake also questioned whether the government had conducted adequate stakeholder consultations before implementing the changes, and whether the economic viability and financial disclosures of existing projects had been properly evaluated.
He cautioned that these short-sighted policies could:
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Undermine public-private partnerships in the clean energy sector
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Increase dependence on costly fossil fuels
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Weaken Sri Lanka’s energy security and climate commitments
Calling for corrective action, the MP urged the government to:
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Reinstate the previous tariff structure or introduce a transparent and predictable pricing formula to rebuild investor trust
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Immediately restore tariff concessions on battery imports, highlighting that affordable energy storage is critical to the viability of renewable energy investments
“If we truly aim for a sustainable energy future, we must ensure that the policy environment is stable, investor-friendly, and aligned with long-term national goals,” Karunanayake concluded.
