Sri Lanka introduces new laws to modernize power industry and encourage investment in renewable energy | Global News

Sri Lanka’s parliament made a significant move on Thursday by approving a new law aimed at attracting investment in renewable energy and reducing losses in the state-run power monopoly. This legislation is part of a commitment made in a $2.9 billion IMF program to revamp the power sector in the country.

The Electricity Bill, which was approved by a majority of 44 votes, is set to make the Ceylon Electricity Board monopoly more profitable and attract investments in the renewables sector. Sri Lanka has set an ambitious target of generating 70% of its power from renewables by 2030, requiring an estimated $12 billion in investments over the next six years.

The country, which has been grappling with a financial crisis and economic contraction, is looking to reform its state-owned companies to make them profitable. This includes unbundling the CEB to run transmission, generation, and other services as separate entities.

While the new legislation has faced opposition from political parties and trade unions, the government believes that it will pave the way for setting up wholesale power markets, open access, and power trading across south Asia. Sri Lanka has already entered into a 20-year power purchase agreement with India’s Adani Green Energy Ltd for wind power stations, with plans to attract more investments from India for its renewable sector.

This move signifies a significant step towards achieving sustainability and energy independence for Sri Lanka, as it aims to become a key player in the renewable energy market in the region.