Wednesday Sep 09, 2026
Wednesday Sep 09, 2026
Wednesday, 9 September 2026 00:02 - - {{hitsCtrl.values.hits}}
Chairman Dr. W.K.H. Wegapitiya
LAUGFS Power PLC said project execution costs and timelines came under pressure during the 2025/26 financial year, as tighter regulatory requirements and a weaker rupee added to the cost of renewable energy development, according to its annual report released yesterday.
The company said Sri Lanka’s renewable energy sector saw continued private sector participation and policy support during the year, with the Government emphasising solar and wind capacity expansion to strengthen energy security.
LAUGFS Power Chairman Dr. W.K.H. Wegapitiya said: “Government policies in Sri Lanka remained generally supportive of renewable energy development, with clear national targets and encouragement for private sector participation. Nevertheless, the industry continues to face several regulatory challenges, including delays in approvals, evolving tariff structures, grid capacity limitations, and policy uncertainties, all of which require greater coordination and consistency to accelerate sector growth”.
Rooftop solar installations accounted for 9.4% of total electricity generation in 2025, according to Central Bank of Sri Lanka data cited in the report, reducing reliance on thermal power but creating grid management challenges due to the mismatch between daytime solar generation and night-time peak demand.
The company said changes in import duties and tax structures, along with continued rupee depreciation, raised the cost of imported equipment and materials, requiring more disciplined cost management and procurement planning. Stricter approval procedures and grid interconnection requirements also lengthened project implementation timelines during the year, it said.
LAUGFS Power said it continued to expand its solar portfolio and progress its 2 MW mini hydro power plant project during the year, while investing in remote monitoring systems for hydro operations and technical training for staff. The company said it is evaluating opportunities in the Mechanical, Electrical and Plumbing sector, as well as large-scale wind power, hybrid renewable systems and energy storage integration, as it looks to diversify its portfolio.
The company said the sector outlook remains positive, supported by rising electricity demand, continued policy support and falling renewable technology costs, though it flagged grid capacity limitations, financing constraints and regulatory complexity as near-term risks.
