News & market updates

Cleantech (Abans Group) achieved integrated ISO 9001, ISO 14001 and ISO 45001 certifications, becoming the only environmental and waste-management company in Sri Lanka to hold all three; the awards recognise improvements in quality, environmental performance, H&S and compliance.

Solar batteries face about 46% in taxes at import in Sri Lanka, increasing developers' capital costs. The Ceylon Electricity Board set a Rs45.80/unit tariff for battery-stored night power but plans only a 10-year tariff window (developers seek 20 years) and FRED objects to VAT treatment and recent feed-in-tariff cuts.

Ceylon Electricity Board will pay Rs45.80 per kWh for solar energy discharged from batteries to the grid at night (1830–2230 hours). CEB also cut rooftop feed‑in tariffs from June 2025 across size bands (Rs14.46–20.90/kWh) and developers warn battery tariffs may be limited to 10 years amid high import taxes.

Ceylon Electricity Board will lower standardized feed-in tariffs for renewable projects below 10 MW from June 2025 — mini-hydro Rs25.74/kWh (from Rs30.53), wind Rs23.83 (from Rs29.86) and ground-mounted solar Rs17.82 (from Rs25.48). Tariffs are for 20-year PPAs and rooftop, biomass and battery-night rates were also reduced or restructured.

The Power Sector Reforms DG clarified the Sri Lanka Electricity (Amendment) Bill: the Government will hold 100% preliminary shares in the Generation and Distribution companies, but further unbundled firms (except hydropower) will not have permanent 100% GoSL ownership. He said NTNSP is limited to transmission, CEB's 55% in LECO will be transferred as shares to the Distribution Company (not a full absorption), and the regulator retains tariff-setting power in consultation with Finance.

Commercial Bank (COMB.N0000) convened Sri Lanka’s first bank-led national sustainability summit 'ForwardTogether 2025' on 26 June to advance ESG, sustainable finance and climate action. The event brought policymakers (including the Central Bank Governor) and development partners together to support green finance and inclusive banking.

CBSL Governor Dr. Nandalal Weerasinghe urged Sri Lankan banks to embed sustainable finance and pledged CBSL support for the Sustainable Finance Roadmap 2.0, stressing ESG risk management, transparent disclosures and potential regulatory incentives.

Minister Sunil Handunneththi represented Sri Lanka at the WEF New Champions meeting in Tianjin (24-26 June), promoting public-private partnerships in natural resource management and highlighting the country's reform trajectory and investment potential. He also held a bilateral meeting with Egypt's investment minister to explore cooperation and investment opportunities.

Resus Energy PLC (HPWR.N0000) launched a Rs. 1 billion Green Bond—offering 11.55% (4 yrs) and 11.75% (5 yrs)—to fund new solar projects and refinance debt, with over 55% of proceeds to build 8 MW expected to add 15 GWh/year and cut ~10,000 tCO₂ annually. NDB is manager to the issue.

NDB Bank launched the E-Friends II Refinance Loan Scheme offering up to Rs.30 million at 6.5% p.a. with up to a 10-year repayment to fund industrial sustainability projects. The scheme covers pollution reduction, cleaner production, energy-saving and renewable solutions and includes advisory support.

India and Sri Lanka's joint technical team confirmed the technical parameters for the India–Sri Lanka power grid interconnection on 16 June, enabling cross-border electricity trade that will let Sri Lanka import during shortages and eventually export renewable power.

Assetline Finance reported FY to 31 Mar: profit after tax more than doubled to Rs. 2.7 billion (up 111%), and profit before tax rose 96% to Rs. 5.6 billion. Interest income rose 14% to Rs. 11.3 billion, total assets +40% to Rs. 52.4 billion, lending +46% to Rs. 42.7 billion, CAR 26.1% and gross Stage 3 3.9%.

Resus Energy (HPWR.N0000) will raise Rs1 billion via a listed green bond issue to fund new renewable projects and refinance debt, offering 4‑yr bonds at 11.55% and 5‑yr bonds at 11.75%. About 55% of proceeds will finance 8 MW of solar (≈15 GWh/year) and Fitch rated the issue A-(lka).

Resus Energy PLC is issuing up to Rs.1 billion of listed senior unsecured Green Bonds (issue opens 25 June 2025) to fund renewable projects, allocating over 55% to finance 8 MW of solar capacity. The two tranches offer 4‑yr at 11.55% and 5‑yr at 11.75% and carry a Fitch A-(Ika) rating.

Sri Lanka, as Theme Country, promoted investment opportunities in infrastructure, technology, green energy, agriculture, tourism and manufacturing at the 9th China‑South Asia Exposition and 6th CSACF in Kunming (18–21 June 2025). Bilateral talks with Yunnan explored processed food, apparel, agriculture, tourism and cut‑flower collaboration, and the pavilion showcased tea, gems and processed foods.

The World Bank Group approved a $150 million program to support Sri Lanka’s clean energy transition, aiming to add 1 GW of solar and wind and including $40 million in guarantees; the program is expected to mobilise over $800 million in private investment and support Ceylon Electricity Board reforms and grid upgrades.

The Government revised rooftop solar (RTSPY) tariffs, effective 16 June, with the new rates applying to applicants who pay the RTSPY system processing fee on or after 16 June and Power Purchase Agreements fixed for 20 years. RTSPY clearance requests with fees paid on or before 16 June will be finalised by the Ceylon Electricity Board by 31 July 2025.

Aitken Spence will sell its remaining 100 MW Embilipitiya thermal power plant instead of relocating it after the last PPA expired on March 4, 2024, and will divest residual assets as part of a drive to reach net-zero emissions by 2030.

MIGA will provide $40m in political risk guarantees as part of a $150m World Bank Group package to de-risk foreign investment in Sri Lanka's wind and solar projects and Ceylon Electricity Board payment obligations. Tenders for two 50 MW wind farms close on July 9.

World Bank approved a $150 million program to support Sri Lanka's clean energy transition, targeting 1 GW of new solar and wind, mobilizing over $800 million in private investment and providing $40 million in guarantees to de-risk projects and CEB payment obligations.

World Bank approved a $150m program to finance 1,000 MW of solar and wind capacity and strengthen Sri Lanka's grid to avoid blackouts. The package includes $40m in guarantees to lower private investor risk and is expected to mobilize over $800m in private investment toward a 70% renewables target by 2030.

Resus Energy PLC will raise Rs.1 billion by issuing up to 10 million listed Green Bonds (4-year at 11.55% p.a. and 5-year at 11.75% p.a.). The company also connected a 5.0MW solar PV plant, expected to generate about 10 GWh annually.

Lazard's Levelized Cost of Energy+ analysis finds renewable power (solar and onshore wind) is the cheapest and quickest to deploy, with utility-scale solar at $38–$78/MWh versus $48–$107/MWh for natural gas combined-cycle plants; gas-plant build costs are at a 10-year high amid record electricity use and equipment backlogs.

Around nine investors have shown initial interest in the 100MW Mullikulam BOO wind farm in Mannar. Hayleys group was recently awarded a 50MW plant at Mannar at 4.65 US cents/unit; the CEB site has been opened for private 50 x 2 projects and the bid deadline was extended.

Ceylon Chamber and Dhaka Chamber signed an MoU to foster bilateral trade and investment after a business dialogue in Colombo on 17 June 2025. The forum connected 24 Bangladeshi delegates with 90+ Sri Lankan firms and hosted 200+ B2B meetings across FMCG, IT, logistics, renewables and pharmaceuticals.

Vidullanka PLC's 500 million rupee, 5-year Sukuk — the first Sukuk listed on the Colombo Stock Exchange — was oversubscribed. The issue offers a fixed Ijarah option at 10.75% semi‑annual (11.04% effective) or a floating AWPLR-linked option with a 13% cap and 10% floor.

Vidullanka PLC's issue of five million listed, rated, secured, redeemable Sukuk (Rs.100 each; Rs.500 million) was fully subscribed on opening day (17 June). The company will disclose the basis of allotment to the Colombo Stock Exchange; the sukuk is Sri Lanka's first listed Shariah-compliant debt instrument.

Resus Energy PLC (HPWR.N0000) connected a 5.0 MW ground-mounted solar PV plant in Damana to the national grid, built at a cost of over Rs. 750 million and expected to generate about 10 GWh annually. The addition increases the company's supplied solar capacity to 15 MW and brings its total utility-scale capacity to 30 MW (c.75 GWh pa).

The Ceylon Chamber hosted a business dialogue with a Dhaka Chamber delegation on 17 June 2025, including 200+ B2B meetings and a signed MoU to promote Sri Lanka–Bangladesh trade and investment.

Virtusa Corporation was awarded the EcoVadis Gold Medal for the third consecutive year, ranking in the 98th percentile globally and top 1% in its industry; in FY24 it used 28% renewable energy, cut Scope 1 and 2 emissions 15% YoY and recycled 50% of its water.