Sri Lanka Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in Sri Lanka, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals.
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Energy
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Overview

Sri Lanka offers significant opportunities for energy technology and infrastructure investment, including in energy efficiency, grid modernization, storage, and liquefied natural gas (LNG). While the current government adopted the previous administration’s target of generating 70% of the country’s power from renewable sources by 2030, there have been conflicting actions regarding this goal. Indian firm Adani Green Energy, for example, withdrew plans to build a previously contracted $440 million wind power project following the current government’s efforts to renegotiate the contract terms.

While renewable energy remains an opportunity, the government is increasingly focused on LNG to balance grid stability with economical generation. The government is planning to resurrect a stalled LNG import terminal via a floating storage and regasification unit (FSRU) under a build, operate, own, and transfer procurement model. The government foresees this LNG project enabling 700 MW of energy generation by 2028 via upgrades to existing power plants.

Electricity sector reforms introduced in 2024 were rolled back in August 2025, when the new government introduced amendments that curtailed changes needed to attract broader investment, ensure transparency, and improve efficiency. The Ceylon Electricity Board’s (CEB) long-term generation plan for 2025–2044 envisions a power mix dominated by renewable sources, supplemented by thermal generation, with nuclear included in the Base Case as a potential complementary source in the long run. Renewable capacity additions are expected to be led by solar, followed by wind, mini-hydro, and biomass.

Leading Sub-sectors

Opportunities

Power Generation Plants

Sri Lanka’s growing demand for reliable and affordable energy creates significant export opportunities for U.S. companies across the power sector. U.S. firms can supply advanced technologies, equipment, and services for wind and solar plants, mini-hydroelectric facilities, home solar systems, electrical meters and switches, power transmission and control systems, and power cables. There are also opportunities to export crude oil, liquefied natural gas (LNG), and liquefied petroleum gas (LPG) to Sri Lanka.

The Sri Lanka Sustainable Energy Authority (SLSEA) is actively promoting renewable energy, and renewable generation is steadily increasing. Sri Lanka has considerable solar and wind resources due to its location in the Indian Ocean. Eleven wind power plants are currently connected to the national grid.

Looking ahead, additional areas of opportunity include energy storage systems, pumped storage hydropower, and grid modernization technologies to balance intermittent renewables. If a planned LNG regasification and storage terminal is built, Sri Lanka will seek LNG suppliers. The government has publicly confirmed that it is exploring nuclear power to diversify its energy mix. Export prospects also exist in electric mobility, EV charging networks, and energy-efficiency solutions in building and industry.

Resources

Ceylon Electricity Board (CEB)    

Sri Lanka Sustainable Energy Authority (SLSEA)      

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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