Energy

The energy sector has made noteworthy progress in a number of respects in recent years. Despite political turbulence in Sri Lanka, key strategic measures were enacted in 2018 to encourage growth, including increasing renewable energy generation capacity; opening the hydrocarbons sector to greater overseas investment; and forming joint working groups to expedite the construction of liquefied natural gas power plants following a string of agreements with foreign governments. Given Sri Lanka’s expanding fiscal and trade deficits, developing an efficient energy market has been cited as one of the key factors that could facilitate a stable macroeconomic environment. However, while recent developments signal the intent of policymakers to promote energy security, disagreements between technocrats regarding a long-term generation expansion plan have hindered development. Aside from a collection of small renewable energy initiatives, the country has not commissioned a major power plant since 2014. This chapter contains interviews with Damitha Kumarasinghe, Director-General, Public Utilities Commission of Sri Lanka; and Allard Nooy, CEO, InfraCo Asia.