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Sri Lanka renewable power tops 64-pct in May 2025

ECONOMYNEXT – Sri Lanka’s renewable power, helped by state-run Ceylon Electricity Board, hydro power and new private renewable power including rooftop solar topped 64.4 percent in May 2025, sharply up from 48.3 percent a year ago, official data showed.

Out of a total of 1,531 GigaWatt hours of energy generated in May 2025, 986 GWh came from renewables, data published by the central bank showed.

CEB’s hydro generation rose to 575 GWh up 44.7 percent from a year earlier, helped by good rainfall while fuel oil generation dropped from 208 to 35 GWh.

Private non-conventional renewable energy grew to 367 GWh in May 2025 from 258 GWh last year.

Total renewable energy grew by 43 percent to 986 GWh in May.

In April where rains also improved, renewable energy was 809 GWh, or a share of 57 percent, up from 41 percent from last year.

Sri Lanka has seen strong growth in rooftop solar, ahead of its generation plan, as in some other countries. As a result, the utility is scrambling to accommodate more renewable power and maintain grid stability for which initial investments are required.

Sri Lanka has a target of reaching 70 percent renewable power by 2030 with demand also expected to grow if macroeconomists maintain monetary stability and do not trigger currency crises with rate cuts, as had happened after the end of a civil war.

Electricity generation expanded 7.7 percent in May, a key indicator of reviving economic activity from the most recent currency crisis.

The central bank itself has provided the foundation for the growth with deflationary policy which has kept prices down.

However there have been warnings that the central banks target to push up cost of living by 5 to 7 percent as well as recent rate cuts may hurt monetary stability and the ability to repay foreign debt.

As the economy contracts in the stabilization crisis that follows an inflation crisis, electricity demand slows.

From January to May 2023, electricity demand fell 8.5 percent, amid the stabilization crisis triggered to restore confidence in the rupee. (Colombo/Aug20/2025)