Sri Lanka targets $ 4-4.5 billion FDIs in renewable energy and mineral sectors
The Morning: Speaking to The Sunday Morning Business, Ministry of Investment Promotion Secretary M.M. Nayeemudeen revealed that they expected to attract around $ 4-4.5 billion in foreign investments during the year, with a specific focus on attracting investments relating to renewable energy and minerals.
He revealed that in addition to the traditional RE investments in solar and wind power projects, they would also be looking to attract investments relating to green ammonia energy projects. Accordingly, he said that numerous inquiries as well as proposals had been received from potential investors, with negotiations currently ongoing.
Commenting on potential investments in the mineral industry, Nayeemudeen stated: “We are looking for investments in all kinds of minerals such as graphite, garnet, ilmenite, and so on. There are proposals for them.”
In the 2024 Budget speech, President Ranil Wickremesinghe, as the Minister of Finance, revealed that the Government would be working to develop renewable energy sources including green hydrogen, green ammonia, solar, and wind.
“The Ceylon Electricity Board (CEB) spends a significant amount on power generation. Therefore, we lifted all legal barriers to add low-cost mega-scale renewable energy generation to its main grid network.
“The legislation process is ongoing to restructure the inefficient CEB as an efficient institution. Upon implementing the institutional changes to generate power efficiently, the cost of power to the people will be eased,” he said.
OSL take:
Sri Lanka’s power and mineral industries are yet to be tapped for its full potential. With the country’s ongoing economic activities and the path to becoming a regional hub, there is an expansion in the business/investment opportunities covering key economic sectors. It is in such a backdrop that the power industry, especially the renewable energy generation sector and the mineral industry, especially the mineral excavation and export sectors have shown great business potential guaranteeing quick returns on investment. The growth potential in these industries is further evident by the revenue targets set by the Sri Lankan government. The local authorities are looking at improving the ease of doing business environment in these industries while also preparing incentive schemes to attract foreign businesses/investors to explore and engage in business/investment opportunities in the renewable energy generation sector and the minerals sector. With Sri Lanka on a steady growth path, foreign businesses/investors could confidently explore the expanding opportunities in the sectors of renewable energy generation and minerals.