Renewable energy sector facing crisis situation, warn developers

The Federation of Renewable Energy Developers (FRED) has issued an urgent warning to the Sri Lankan government, stating that recent policy decisions — particularly a sharp revision in feed-in tariffs — threaten to destabilize the entire renewable energy sector and derail the country’s clean energy ambitions.

- BY IFHAM NIZAM

Speaking at a press conference at the Ceyon Chamber of Commerce last Friday, FRED president Thusitha Peiris delivered a scathing critique of the government’s handling of the energy transition. “We stand at a critical juncture for Sri Lanka’s energy future. The recent actions by the authorities risk dismantling years of progress and plunging our sector into an uncertain future, with severe economic and social repercussions, he said.

The root of FRED’s concern lies in a recent Cabinet Paper that slashes feed-in tariffs — the rate paid to producers of renewable energy — by more than 30% in some cases. FRED argues this decision is not only scientifically unjustified but also financially crippling.