UNP MP Ravi Karunanayake has issued a stark warning in Parliament, declaring that Sri Lanka’s renewable energy ambitions are headed for disaster unless the government urgently reverses its tariff cuts and policy rollbacks. Investor confidence is tanking, banks are backing out, and clean energy targets risk collapse.
UNP Parliamentarian Ravi Karunanayake on July 8 issued a strong warning in Parliament, stating that Sri Lanka’s renewable energy sector is at serious risk of collapse due to the government’s abrupt tariff reductions and withdrawal of critical tax concessions. He urged immediate corrective action to prevent lasting damage.
Karunanayake specifically raised concerns over the recent drop in feed-in tariffs provided to solar and wind energy producers. He also criticized the cancellation of duty concessions on battery imports, both of which, he said, have severely shaken investor confidence and cast doubt on the feasibility of financing for current and future projects.
“These decisions are damaging,” Karunanayake told the House. “They send a dangerous signal to local and international investors, completely undermining Sri Lanka’s public commitment to reach 70% renewable energy by 2030.”
He questioned whether any stakeholder consultations had taken place before implementing these changes and demanded clarity on whether the financial exposure of banks or the viability of existing energy projects had been properly evaluated.
Highlighting the cascading effects of the government’s policy reversal, Karunanayake warned that it threatens to derail crucial public–private partnerships in clean energy, increase reliance on expensive fossil fuel imports, and seriously undermine national energy security and international climate commitments.
Karunanayake called for an urgent review of the government’s real intentions and policies, suggesting the reinstatement of earlier tariff rates or the introduction of a transparent and predictable pricing formula. Such a move, he stressed, would be critical to restoring investor confidence in Sri Lanka’s clean energy transition.
He also demanded the immediate reintroduction of duty concessions for energy storage systems. “Without affordable batteries, the entire model of renewable energy becomes economically unviable,” Karunanayake added.
