Introduction
As the world unites under Earth Day 2025’s theme, “Our Power, Our Planet,” Sri Lanka stands at a pivotal juncture. The island nation, grappling with economic instability and energy insecurity, is increasingly turning to renewable energy as an environmental imperative and a socio-economic lifeline. With its abundant solar, wind, and hydropower resources, Sri Lanka’s renewable energy sector is emerging as a transformative force, driving job creation, fostering innovation, and redefining its economic trajectory. This analysis examines how the sector evolves into a "job engine," leveraging real-world data and policy frameworks while navigating systemic challenges.
The Renewable Energy Landscape in Sri Lanka
Sri Lanka’s energy matrix has undergone significant shifts. Historically reliant on hydropower, which once supplied 80% of electricity, the country now generates 48.8% of its power from renewables, including solar, wind, and biomass 1. However, deforestation and poor land management around reservoir catchments have reduced hydropower’s share to 50%, forcing dependency on costly fossil fuels during dry seasons 1. The government’s “Green Energy Acceleration Plan 2025–2030” aims to reverse this trend by targeting 70% renewable energy by 2030, with plans to add 6,925 MW of renewable capacity, including 4,705 MW from solar and 1,825 MW from wind 17.