Sri Lanka stands at a critical juncture. In recent years, our nation has faced a series of cascading challenges — economic hardship exacerbated by fiscal instability, compounded further by climate vulnerabilities.
As an island developing state, we are acutely exposed to the impact of rising sea levels, erratic weather patterns, and supply-chain disruptions due to our dependency on imported fossil fuels.
These factors have constrained economic growth, strained our financial systems, and underscored an urgent truth: energy is not merely a sector — it is the backbone of economic recovery, resilience, and future prosperity.
Across Asia and the Pacific, countries are recognising a similar truth: solar energy is about more than sustainability — it’s about economic competitiveness, jobs and energy security. Small Island Developing States, are turning to solar as a shared path to resilience, prosperity, and independence.
Sri Lanka is no exception. Over 60 percent of our electricity is already generated from renewable sources, with rooftop solar alone accounting for 1.8 GW. We are proud of the progress we’ve made, but to move forward, what we need is scale, innovation, and regional solidarity.
It is in this spirit that we are embracing a deeper partnership with the International Solar Alliance (ISA), which is working to embed solar in countries by creating a sustainable ecosystem.
This deep integration of solar is driven by a series of initiatives embedded in the four strategic pillars of ISA: Catalytic Finance Hub, Global Capability Centre and Digitisation, Regional and Country Level Engagement, and Technology Roadmap and Policy.
At the Regional Committee Meeting (RCM) for the Asia-Pacific Region held in Sri Lanka last week, the ISA engaged with its member and signatory countries on four key aspects: identifying the most suitable technologies and policy actions, promoting digitised and bulk procurement to ensure enhanced private sector participation through the SIDS platform, strengthening local capacity to implement solar projects, and leveraging digitisation and AI to enable efficiency and transparency.
We believe these initiatives present concrete solutions to the current challenges faced by our country and the region as a whole.
Technology roadmap
As countries increase their use of renewables, the main challenges are no longer awareness or ambition. They are system reliability, storage, and grid flexibility. Here, ISA has been a valuable partner, helping Member Countries manage the quickly changing technology landscape.
Sri Lanka is implementing innovative solutions, such as floating solar on inland reservoirs such as Chandrika Wewa and Kiriibban Wewa, which reduces evaporation while using unused water surfaces. We are starting feasibility studies to expand these experiments to Randenigala and Moragahakanda. We are also investing in Battery Energy Storage Systems (BESS) to ensure a consistent supply during dry seasons and high evening demand when solar production drops.
ISA’s recent reports on energy storage offer essential guidance for countries such as Sri Lanka as we incorporate more solar into our grid. These reports detail technology options, regulations, and financing models designed for emerging economies. With climate variability impacting our hydropower output, we are focusing on battery storage for grid management and backup at key facilities. The APAC region’s storage market, valued at over USD 48 billion, is growing quickly. Sri Lanka is committed to integrating ISA’s recommendations into our national strategy to create a stable, resilient, and prepared energy system.
Regional interconnections are key to reducing investments in storage and enhancing energy security. We are planning a 285-km HVDC interconnection between Sri Lanka and India, which with policy coordination, can provide continuous clean power at scale and lower costs for everyone.
Indeed, as Europe’s integrated market illustrates, cross-border electricity trade can produce significant economic benefits. The APAC region, through the South Asian Green Energy Corridor, Greater Mekong region interconnections and OSOWOG, is poised to replicate this success — with Sri Lanka playing a key role in this transformation.
Reducing fuel imports
In Sri Lanka, oil still makes up 22 percentof our electricity generation, and our annual crude imports exceed USD 4.3 billion. Reducing our dependence on fossil fuels is essential for the environment and the economy. Our goal is to generate 70 percent of our electricity from renewable sources by 2030, making the mobilisation of capital a priority.
To achieve this target, we need huge deployments of solar, which cannot be achieved without private sector participation. To enable this, the ISA is working to set up a SIDS E-Procurement Platform, which will soon be operational across the region.
The SIDS platform, anchored by the ISA and the World Bank will aggregate solar demand from island nations, standardise procurement templates, and give access to verified vendors and pre-approved financing. This model lowers transaction costs, levels the playing field for smaller economies, and boosts private sector participation — key for expanding solar use in outer islands and underserved communities.
Through the ISA, we can move from donor-driven projects to sustainable, market-oriented solutions. This development will strengthen our financial ability for solar independence — not only in Sri Lanka, but also throughout the APAC region.
Strong institutions
No energy transition succeeds without strong institutions, transparency and active participation of citizens. Weak regulations, limited skills, and an unprepared financial system can slow solar adoption. Sri Lanka, like many others in the region, is working to set up strong institutional mechanisms.
The increased transparency in the power market, and regulatory reforms have laid the groundwork for better integration and investment readiness.
However, we recognise that building strong institutional mechanisms requires knowledge of industry best practices and a systemic, regionally coordinated approach. ISA’s STAR-Centres (Solar Technology Application Resource Centres), already active in Bhutan, Papua New Guinea, and Kiribati, provide a model for replicating these efforts.
They enhance technical, managerial, and financial skills among the Government, utilities, and private entities.
The proposed Global Capability Centre (GCC) and ISA’s new digital learning platforms will ensure these resources are available across borders, particularly for nations with fewer resources. In Fiji, for instance, ISA-supported training for local banks and energy regulators has changed how projects are assessed and financed — making solar energy a local opportunity instead of an imported solution. Building capacity is crucial, not a secondary task. Sri Lanka championed this agenda at the RCM.
Digitalisation and Artificial Intelligence (AI) are reshaping the energy landscape by enabling smarter, more efficient, and future-ready power systems.
From predictive maintenance and real-time grid balancing to AI-driven demand forecasting and virtual procurement, these tools are transforming how solar infrastructure is planned, financed, and managed.
Sri Lanka has taken early steps through initiatives such as the Accelerated Solar Rooftop Deployment and Utility Modernisation, laying the groundwork for smart grids, smart metering, and automated demand-side management. With ISA’s support, these efforts can be expanded regionally, particularly in smaller economies that require technical assistance to adopt such innovations.
The Asia-Pacific Regional Committee Meeting in Colombo was more than a policy gathering. It showed our commitment — to take action, collaborate, and lead. For a region that is home to 60 percent of the world’s population and faces significant climate challenges, this commitment is vital.
Sri Lanka believes that solar energy is more than a technology; it is a strategy for resilience, jobs, and inclusive growth. Through stronger institutions, innovative technologies and regulated policies, and state-of-the-art digital tools, the International Solar Alliance is helping us turn this strategy into reality. Let that future begin right here in Colombo.
