Renewable Energy
News & market updates
A market brief each morning, plus company filings and news from across Sri Lanka's stock market. Filter by company, sector and theme, and use sentiment badges to quickly identify Positive or Negative news.
A market brief each morning, plus company filings and news from across Sri Lanka's stock market. Filter by company, sector and theme, and use sentiment badges to quickly identify Positive or Negative news.
The Energy Minister and parliamentary Energy Committee approved the order launching Sri Lanka Licensing Round 2026 (SL2026-01), opening bids on 25 Aug for four offshore Mannar Basin blocks (~34,000 sq km). Bids close in early 2027; awards via Petroleum Resources Agreements and commercial production targeted by 2032 if viable.
Vidullanka PLC, with partner WindForce, inaugurated its first grid-scale Battery Energy Storage System (10MW/40MWh) in Anuradhapura today, the first of 13 BESS projects totaling 130MW/520MWh. Vidullanka is also commissioning its eighth ground-mounted solar to bring capacity to 96MW and reported FY25/26 revenue Rs3.8bn, PAT Rs1.55bn.
The Cabinet approved hosting the SAARC Energy Centre's workshop 'Financial Modelling for Renewable Energy Projects' in Colombo from 5 to 7 October 2026; SAARC will provide local hospitality and airport transport (airfare excluded) and the event will include two representatives from each SAARC member.
The Ministerial Consultative Committee on Energy Affairs approved an Order to call for investment proposals for exploration and development of petroleum resources in Sri Lanka; the Order was published in Extraordinary Gazette No. 2497/37 on 16 July 2026 and requires submission of proposals with the specified administrative fee for identified blocks.
Global markets traded mixed as the Fed is widely expected to lift rates by 25 basis points; the US 10-year yield rose to 5.04%. Brent crude fell to $108.1/barrel and gold dipped to $4,321/oz, while the US dollar eased slightly.
Cabinet Spokesman Dr. Nalinda Jayatissa said the Ceylon Petroleum Corporation has not yet submitted a fuel price proposal and no price revision discussions are underway. He said future pricing will hinge on global price movements and noted the government provided Rs. 57 billion in concessions over three months.
The Institution of Engineers, Sri Lanka will hold the NEC 2026 on 24 September 2026 at Cinnamon Grand Colombo to present four policy papers, on engineering education, energy transition and power-sector reform, transport development and building fire safety, and seek stakeholder action.
Sri Lanka's GDP grew 4.2% year-on-year in Q2 2026 (Rs.3,029.6bn), down from 5.0% a year earlier and 5.1% in Q1. The statistics office said fuel rationing and higher fuel costs after Middle East tensions and subdued tourism weighed on activity; agriculture fell 2.3% while industry rose 7.3%.
Brown & Company and LOLC Holdings partnered with the government (51% state, 49% private) to revive the long-idle Hingurana/Gal Oya sugar factory, rebuilding infrastructure and expanding into ethanol, power and bio-fertiliser. The operation now cultivates ~8,500 ha, employs ~1,300 directly and works with 8,000 farmers, supporting roughly 30,000 people and reducing sugar imports.
Energy Minister Anura Karunathilaka said the government will review domestic fuel prices at the end of the month after international crude surged; private distributors report losses of around Rs. 140-160 per litre and options include concessions or a price-band mechanism to protect consumers.
Asian shares wavered as oil rose (U.S. crude $102.68/bbl, Brent $106.96) and global bond yields climbed ahead of the U.S. Federal Reserve and Bank of Japan policy meetings, with markets pricing roughly a 90% chance of a 25bp Fed hike. Middle East tensions and AI slowdown calls added to caution.
Colombo Stock Exchange indices edged up (ASPI +0.06% to 21,327.69) as Vidullanka subscribed Rs100 million in Vidul Biomass II to develop a 6.6MW Medawachchiya Dendro Power Project, with total cost $16.1m and a ~Rs1.3bn equity commitment.
Energy Minister Anura Karunathilaka said Sri Lanka is considering options to revise fuel prices after private retailers reported diesel losses of up to Rs.160 per litre; the state-owned CPC faces about a Rs.60/litre diesel loss offset by refinery profits. The government may apply subsidies or set upper/lower retail price limits as possible measures.
Hayleys Solar (part of Hayleys Group / Hayleys PLC) commissioned a 3MW Veyangoda ground-mounted solar project, the first under a planned 300MW ground-mounted portfolio. The 3MW (4,143.36 kWp DC) site is expected to generate ~6.35 GWh annually and avoid ~4,339.5 tonnes of CO2, with elevated mounting enabling agrivoltaic use beneath the panels.
Energy Minister Aruna Karunathilake said the government will grant systematic concessions for battery systems above 100 kW to support renewable energy storage, with a framework being developed while national quality standards remain absent. He added renewables now supply 60-70% of generation and no tariff hike is planned next quarter.
Global oil prices retreated on Friday but were set for almost 10% weekly gains after topping $100/bbl; Brent traded at $103.78 (-3.58%) and WTI at $99.23 (-2.17%) as markets reacted to escalating conflict involving Iran.
Oil prices slipped on Friday but were up over 7% for the week, Brent $103.88/bbl, WTI $99.15/bbl, as attacks near key Middle East shipping routes and other disruptions pushed U.S. diesel to a record above $6/gal. European Central Bank officials also signalled the possibility of further rate rises if energy-driven inflation persists.
Global bond yields spiked and equities fell after Brent crude jumped to $109.97/bbl, pushing the 10-year US Treasury yield to about 4.97% and prompting markets to price in further central bank tightening amid higher inflation risks.
Brent crude rose above $100 a barrel, touching $100.19 after a ~2% gain, while U.S. WTI was near $94.52, as the Middle East conflict intensified. The move reflects supply-risk concerns after attacks on Saudi energy facilities and threats to Red Sea shipments, lifting Brent about 25% since early last month.
The BOI registered an Agreement with Sahasdhanavi Limited to develop a 350 MW RLNG/diesel combined-cycle power plant at Kerawalapitiya with a US$291.19 million investment; the BOOT project is to be completed within 42 months and is expected to create 1,147 jobs and operate initially on diesel with capability to shift to RLNG.
The BOI registered a $291.19m BOOT agreement with Sahasdhanavi Ltd to develop a 350 MW RLNG/diesel-operable combined-cycle power plant at Kerawalapitiya, due within 42 months; the project is expected to add ~1,147 jobs and boost local generation capacity to about 1,000 MW in the area.
Japan's ambassador urged Sri Lanka to pivot toward Southeast Asia and Japan and adopt an export-oriented industrial model, calling for forward-looking trade and investment policy, stronger domestic industrial policy and expanded renewable energy investment; he cited the National Export Development Plan 2026 and a proposed Sri Lanka-Japan Economic Corridor.
Asian stocks wavered as the yen surged and Iranian threats pushed oil higher, with Brent crude at $97.04 a barrel and risk sentiment dented. The U.S. 10-year yield was 4.788% and traders priced about a 60% chance of a 25bp Fed hike at the Sept. 16 meeting.
Japan's Ambassador Akio Isomata, speaking at the 47th SLJBC AGM, outlined three priorities to deepen Sri Lanka-Japan economic ties: forward-looking trade and investment policy, promotion of domestic industrial policy, and expanded investment in renewable energy. He welcomed the National Export Development Plan 2026 and urged an export-oriented industrial model linked to regional manufacturing.
Hayleys Electronics, partnering with SolaX Power, hosted an 'Unlocking the Power of Tomorrow' forum in Colombo attended by over 300 stakeholders and launched an islandwide awareness programme with follow-up sessions planned in Galle, Negombo, Kurunegala, Jaffna and Trincomalee.
The Sri Lanka-Benelux Business Council held its 31st AGM where Dutch Ambassador Wiebe de Boer confirmed Sri Lanka's GSP+ access remains until 2029 and urged deeper EU ties including a potential FTA. Council president Farhath Amith (re-elected) urged Benelux support and highlighted renewable energy, floriculture, agro-processing, eco-tourism and healthcare as priority sectors.
An IMF team will visit Sri Lanka from 10-23 Sept to conduct the combined Seventh review of the Extended Fund Facility programme and the 2026 Article IV Consultation. The IMF said it revised 2026 growth to about 3% and flagged a worsened external outlook from higher fuel import costs and weaker tourism.
PUCSL Chair Prof. K.P.L. Chandralal said Sri Lanka needs about 5,000 qualified solar technicians a year to support roughly 600 MW of solar additions annually and hit a 70% renewable electricity target by 2030; some 1,500 have been trained so far under an SLSEA‑PUCSL program. New regulations make NVQ Level 3 the minimum from Jan 2028-Dec 2029, with NVQ Level 4 and Engineering Council registration required from Jan 1, 2030.
Hayleys PLC's solar arm completed a 3.3 MWp multi-site installation for Toyota Lanka across four facilities, expected to generate about 4.6 GWh/year and cut roughly 2,300 tonnes of CO2 annually.