IPS report flags slow digital shift in power sector

Power sector digitalisation remains limited due to weak coordination, funding gaps, and absence of a national roadmap; LECO has implemented 5,600 pilot projects, with 25% of its 38,000 customers using smart meters and new ERP and GIS-based systems

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SRI Lanka’s move toward a digital energy ecosystem remains uneven, with pilot initiatives underway but progress held back by limited funding, weak coordination, and the absence of a national roadmap, according to the Institute of Policy Studies’ (IPS) flagship report State of the Economy 2025.

The report notes that while the National Energy Policy (NEP) 2019 provided a framework for digitalisation, implementation has been fragmented and affected by the macroeconomic crisis.

“The NEP 2019 was implemented in an era of multiple crises, whereby the power sector was severely affected by rising import prices and shortages due to the foreign currency crisis,” the IPS observes.

Interviews with the Ministry of Power and Energy, the Ceylon Electricity Board (CEB), the Public Utilities Commission of Sri Lanka (PUCSL), Lanka Electricity Company (LECO), and the Sri Lanka Sustainable Energy Authority (SLSEA) point to pilot-level progress and early adoption of smart technologies.