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Monday November 9th, 2026

South Asia forging ahead towards renewable energy

Ngadi Bazar Power Plant – Nepal

ECONOMYNEXT – Land-locked Nepal and the island nation of Sri Lanka are both rich in renewable resources that could be utilised for power generation. And both countries have ambitious plans of increasing their respective installed energy capacities within the next several years by exploiting these renewable energy reserves.

The current Sri Lankan government is targeting a 70percent contribution from renewable energy to the National Grid by 2030, says Lakmal Fernando, Director/CEO of Regen Renewables Pvt. Ltd. Right now that contribution is less than 40%.

Fernando was speaking at a webinar organised by the Friedrich Naumann Foundation (FNF) South Asia, on ‘Ideas and Actions for the Renewable Energy Sector’ in its Restart Asian Economies series, on January 28th. He was joined by Nawa Raj Dhakal, the Deputy Executive Director of Alternative Energy Promotion (AEPC), Nepal. The session was moderated by FNF’s Country Representative in Bangladesh, Dr Najmul Hossain.

It has not been very long since Sri Lanka has taken note of its unlimited access to sun, wind, water as well as biomass, as potential energy providers, which could reduce if not completely replace dependency on costly fossil fuels in the production of electricity. However, research indicates that tea plantation companies had invested in mini-hydro plants as long ago as the early 20th century.

Meanwhile, over a period of ten years or so, says Fernando, Sri Lanka has had a slight shift towards complementing the country’s energy production through ground-mounted and rooftop solar panel installations.

The bulk of the 325MW production of solar energy, however, has been achieved only since the latter part of 2016, facilitated by government initiatives such as net accounting and net plus metering systems. Such schemes encourage consumers, now referred to as ‘prosumers’, to use solar to generate electricity on their own premises while either being paid for extra energy generated or for all of the energy provided to the grid, depending on the scheme selected.

The Battle for Energy (Soorya Bala Sangramaya) for instance, introduced about 4 years ago hoped to add 200MW to the national grid by 2020, and a 1000MW by 2025, through the installation of small-scale rooftop solar panels on hotels, commercial establishments, households and religious places.

Reaching the government’s 70% target would require the production of around 4.6 MW, in the next ten years, and that is an ‘uphill task,’ explains Fernando. He is optimistic, however, that if a million of the 6.5 million houses could be harnessed to produce 2 to 3 kw of solar energy each, 3GW could be connected to the national grid.

He points out that the rest of the shortfall could be met through ground-mounted solar power generators as well as wind power. While the Asian Development Bank provided a USD50 million loan in 2017 to fund rooftop solar energy production, Fernando states that the sector has also received a boost from local banks which have reduced their interest rates on loans to a single-digit.

Furthermore, the government is committed to re-commissioning 7000 rural transformers.

Meanwhile in Nepal, the introduction of a new constitution in 2015 and the resultant three tiers of government, Federal, Provincial and Local is paving the way for the generation of renewable energy locally, says Dhakal.

A country that generates a bulk of its energy through hydro projects, Nepal’s installed capacity is currently at 1430 MW, but experiences a 40% drop in production during dry seasons, explains Dhakal. Electrification of homes is mostly in urban areas and through the grid. The Nepali government has, in recent years been promoting the use of natural energy to further expand electrification of the country. While solar is not a widely used medium, min hydro projects are gaining ground according to Dhakal. Of course, Nepal, he points out, is blessed with ample hydro resources, making it possible for the production of run-of-the-river hydroelectricity. The current focus, he explains, is to popularise off-grid production of electricity for use in rural and suburban areas.

The Nepali government is targeting an expansion in the installed capacity to 5000MW by 2023 and 15,000 MW by 2030.

According to Dhakal, Nepal hopes to see an increase in annual electricity consumption from the current 260kw per capita to 750kw by 2023 and 1500 kW by 2030.

While the Nepali government is committed to giving up to 60per cent in subsidies for the initial investment of schemes designed for off-grid production of energy, it is providing the technical know-how and evolving policies around ‘take and pay’ plans etc. for companies involved in energy production for the grid. These supports also include getting environmental and other clearances from multiple government ministries to make things more realistic and time-bound.

The mini energy production schemes promoted in local government areas says Dhakal are geared towards socio-economic development of local areas. Schemes designed along with co-operative models or through IPP’s involve the setting up of local business and economic centres as well as academic and health-related institutions, which while creating a demand for more energy would also bring about more employment opportunities.

In Sri Lanka, the unit cost for coal-based electricity is LKR. 9.35, while a unit of Liquified Natural Gas(LNG) is LKR14.50 and a diesel powered unit is anything between LKR25 to 50. Solar and wind production, says Fernando is available at LKR8 to 10. Nepal meanwhile, says Dhakal, where production is heavily dependent on its rainfall patterns charges Nepali Rs. 8.40 per unit for hydroelectricity during the dry months and Rs. 4.80 in the wet months of the year. Solar and wind-powered energy costs Nepali Rs. 7.30 per unit.

While a stable grid is essential to absorb the renewable energy that is connected, Fernando points to delays in obtaining approvals and the depreciation of the rupee against the dollar as the greatest challenges private companies must deal with. Tariffs agreed with the utility provider, are usually tagged to the dollar, and will apply for at least ten years, he says. However, by the time the approvals are obtained and raw materials, of which nearly 75percent for both solar and wind are imported, the costings for both supplier and consumer changes. It is necessary, therefore, he says that both suppliers and consumers lobby government to streamline the approval process. The Central Electricity Board (CEB) controls the production and distribution of electricity, and regulations for renewable energy production are applied differently from area to area. When approvals take years, and costs then increase by 15 to 20percent, the project becomes untenable, and, if the current government is committed to ensuring its 70percent target is met, then it must be pro-active in streamlining the necessary processes, says Fernando.

While Foreign Direct Investment (FDI) has not caught on very much in the energy sector in Nepal, dollar PPA’s are allowed, says Dhakal who explains that the Nepali government is very keen to expand both domestic energy usage while also pursuing bi-lateral and multi-lateral agreements with neighbouring countries.

Nepal, which until three years ago experienced severe power shortages, now has the potential of producing 83,000MW of hydro energy. . Domestic consumption, says Dhakal is projected to be around 10,000MW by 2030 with about 5000 MW available for export. Being a signatory to both the South Asian Association of Regional Cooperation (SAARC) and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) initiatives towards trading in electricity amongst member countries, Nepal is actively pursuing such trade agreements with India, Bangladesh, Bhutan etc., says Dhakal.

He points out, however, that for such agreements to be viable the production quality must be satisfactory and partnerships should go beyond government to government co-operation to include the private sector. India for instance is moving fast in developing solar and wind power, which could be enhanced with hydro energy contributions from Nepal.

There have also been talks on setting up a South Asian regional grid to further enhance energy sharing between member States. Says Fernando, while such initiatives are welcome, agreements must ensure equity and transparency, without which, smaller countries such as Sri Lanka could get ‘sandwiched between giants and not enjoy the benefits of such a setup.’ Discussions between India and Sri Lanka have been ongoing for quite some time in this regard, he says, adding that FNF could play a role in educating the people on the advantages of inter-regional energy connectivity and also ensuring grid stability.

Despite there being 6.5 million households, Fernando says only 28,000 have opted to move to solar energy usage. More awareness amongst the people on the benefits of renewable energy is needed, he notes, where unlike Nepal, the subject has been included, albeit as only a chapter, even in a school textbook. Sri Lanka offers university-level courses, and in Nepal too, renewable energy is studied by students in the Humanities and Engineering fields. Nepal has also included it in its technical and vocational education training programme.

While promoting renewable energy would open up more employment opportunities, Fernando is hopeful that there will be a push towards educating the young in Sri Lanka on the importance and benefits of moving towards renewable energy options. Children, he says can be the influencers if introduced to the subject early in life, and, if like some other countries subsidies are provided to persuade the public to switch to alternate forms of energy and clear regulatory frameworks are implemented, with time, Sri Lanka too could reduce its dependence on costly fossil-based fuels. (Colombo, February 4, 2021)

Reported by Kshama Ranawana

Sri Lanka rupee closes at 332.53/59 to US dollar spot, bond yields edge up

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.53/59 to the US dollar spot on Monday, from 332.55/60 the previous day, while bond yields closed higher, dealers said.

A bond maturing on 15.09.2029 closed at 190/98 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 closed at 11.07/12 percent, up from 11.05/10 percent.

A bond maturing on 01.02.2031 closed at 11.30/40 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 closed at 11.65/70 percent, up from 11.55/65 percent.

A bond maturing on 01.11.2033 closed at 11.95/12.00 percent, up from 11.90/95 percent.

A bond maturing on 15.10.2034 closed at 12.10/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 closed at 12.40/50 percent, up from 12.30/40 percent. (Colombo/Nov9/2026)

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Sri Lanka stocks close up 1.37-pct, banks lead turnover

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Monday, CSE data showed, with the benchmark All Share Price Index moving up 1.37 percent.

The ASPI was up 291.72 points at 21,531.37, while the more liquid S&P SL20 was up 1.67 percent, or 100.96 points, at 6,146.34.

Positive contributors to the ASPI were Commercial Bank of Ceylon (up 2.86 percent at 216.00 rupees), Hatton National Bank (up 1.52 percent at 399.75 rupees), Asiri Hospital Holdings (up 12.86 percent at 31.60 rupees), Tokyo Cement Company (up 5.22 percent at 84.70 rupees), and Access Engineering (up 3.93 percent at 81.90 rupees).

Carson Cumberbatch (down 4.24 percent at 712.00 rupees), Richard Pieris and Company (down 2.43 percent at 28.10 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), Renuka Holdings (down 2.63 percent at 37.00 rupees), and Chevron Lubricants Lanka (down 0.61 percent at 204.25 rupees) were top negative contributors.

Market turnover was 3.33 billion rupees. The S&P/CSE Banks Industry Group led turnover with 667.76 million rupees.

The session saw heavy crossings, according to Raynal Wickremeratne, Head of Research and Strategy at NDB Securities. Significant crossings included Keells (23 million rupees), Distilleries Company (27.7 million rupees), Sunshine Holdings (30.6 million rupees), Commercial Bank (32.4 million rupees), Ceylon Tobacco Company (35.6 million rupees), Hatton National Bank (39.5 million rupees), Prime Lands (40.5 million rupees), and HAS Holdings (41.5 million rupees).

In corporate news, Hayleys Retail Holdings Ltd announced it has partnered with supply chain software provider Blue Yonder to build and scale an AI-native grocery supermarket chain across Sri Lanka. (Colombo/Nov09/2026)

 

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Sri Lanka’s Hayleys Retail to launch supermarket chain with Blue Yonder

ECONOMYNEXT — Hayleys Retail Holdings Ltd has selected supply chain software provider Blue Yonder to build its grocery retail operations from the ground up, the two companies said in a joint statement.

Hayleys Retail, a member of Sri Lanka’s diversified conglomerate Hayleys Group, plans to open several stores in the near future to serve consumers across the country. The agreement marks Blue Yonder’s first retail customer in Sri Lanka.

“Our entry into supermarket retail is about bringing that same commitment to quality and reliability closer to everyday Sri Lankan consumers,” Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC said.

“With Blue Yonder, our teams will have AI-driven insight to deliver a seamless, consistent shopping experience across every store,” he said.

Hayleys, which accounts for approximately 5 percent of Sri Lanka’s export income and operates across 17 business sectors, is entering the large-scale supermarket space by drawing on its group strengths in manufacturing, logistics, and services.

The company selected Blue Yonder to connect its data across merchandising and shelf space, deploy artificial intelligence agents to catch operational issues early, and scale its business into a national network without changing platforms.

The rollout will begin with merchandise operations to manage suppliers, items, costs, and pricing, followed by machine learning capabilities to forecast demand and balance store inventory during seasonal peaks.

“Hayleys Retail is choosing one where AI is the foundation rather than an add-on—connected data and agentic AI built into core merchandising operations, and planning that learns as the business grows,” Antonio Boccalandro, President, APAC at Blue Yonder said.

The retailer plans to use the platform to automate routine store tasks and adjust inventory according to real-time sales and local market trends as its store footprint grows. (Colombo/Nov09/2026)

 

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Sri Lanka’s Citrus Leisure extends Lotus Tower management pact

ECONOMYNEXT – Sri Lanka listed hospitality firm Citrus Leisure said it has extended an agreement to manage consumer-facing and entertainment spaces at the Colombo Lotus Tower, which includes revolving restaurant Blue Orbit, until June next year.

The initial agreement signed between Citrus Leisure and Colombo Lotus Tower Management Company (Private) Limited (CLTMC) is due to expire on December 11.

“The Board of Directors of CLTMC at meeting held on 2nd November 2026 has resolved to extend the term of the Management Agreement and continue the existing Management Agreement until 30th June 2027, to which the company has given its concurrence,” the company said in a market filing.

Citrus Leisure Plc opened its revolving restaurant at the Lotus Tower in December 2023.

The company signed a 3-year agreement with CLTMC in May 2023 to provide services in the management of (l) the banquet hall 1 on the 25th floor, (2) the banquet hall 2 on the 26th floor, (3) the revolving restaurant on the 27th floor, (4) the 6 suites situated on the 28th floor and the kitchen in the basement floor of the Colombo Lotus Tower.

The 350-meter or 1,150-feet tower, the tallest in South Asia, was built at a cost 104.3 million US dollars with 80 percent of the money borrowed from Exim Bank of China.

Located in the commercial heart of Colombo, the tower has been called a symbolic landmark of Sri Lanka as well as a colossal white elephant and has been mired in controversy for years. (Colombo/Nov9/2026)

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CIC Holdings Sept quarter net profit rises 20-pct to Rs1.7bn

ECONOMYNEXT — Sri Lanka conglomerate CIC Holdings recorded a net profit of 1.66 billion rupees for the quarter ended September 30, rising 20.3 percent from 1.38 billion rupees in the same quarter last year, interim accounts showed.

The group posted basic earnings per share of 0.87 rupees for the September quarter, up from 0.73 rupees a year earlier.

Quarterly revenue grew 3.4 percent to 20.89 billion rupees from 20.20 billion rupees, supported by broad-based growth across industrial solutions, livestock, and healthcare segments, which counterbalanced relative demand moderation in agricultural inputs.

Cost of sales rose 5.3 percent to 15.20 billion rupees, outpacing revenue growth and causing gross profit to contract marginally by 1.2 percent to 5.68 billion rupees.

Results from operating activities dropped 7.3 percent to 2.66 billion rupees from 2.87 billion rupees, impacted by higher operating overheads.

Selling expenses expanded 6.8 percent to 2.15 billion rupees, and general and administrative expenses climbed 5.8 percent to 1.07 billion rupees, while other operating income dropped 29.6 percent to 117.40 million rupees.

However, operating profits were cushioned by an impairment reversal on trade receivables of 85.83 million rupees, turning around from an impairment provision of 23.38 million rupees in the corresponding quarter last year.

Net finance costs climbed 35.4 percent to 712.25 million rupees from 526.01 million rupees.

The increase was driven by a 30.8 percent rise in finance expenses to 771.46 million rupees, primarily reflecting higher interest expenses on loans to finance elevated working capital and inventory requirements.

The quarter’s bottom line was strongly bolstered by CIC’s equity-accounted investment in John Keells Holdings PLC (JKH).

Share of profit from equity-accounted investees surged more than fourfold to 590.50 million rupees from 257.87 million rupees, driven by JKH’s strong profit expansion during the period.

The group also recognized a gain on bargain purchase of 55.59 million rupees during the quarter resulting from additional share purchases in JKH where the proportionate net asset value exceeded acquisition cost, compared to no such gain a year earlier.

With associate income gains offsetting operating margin contraction and higher borrowing costs, group pre-tax profit held virtually flat at 2.59 billion rupees, down 0.11 percent.

Income tax expense fell 29.4 percent to 606.24 million rupees from 858.71 million rupees, driving total group profit for the period up 14.1 percent to 1.98 billion rupees.

Total group assets stood at 108.58 billion rupees as of September 30, up from 99.75 billion rupees at the end of March 2026.

Group net asset value per share increased to 25.52 rupees from 22.10 rupees a year earlier.

CIC Holdings’ ordinary voting shares closed at 27.80 rupees at the end of September.(Colombo/Nov09/2026)

 

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Sri Lanka stocks trend up; ASPI gains 0.78-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trading higher on Monday, CSE data showed, with the benchmark All Share Price Index moving up 0.78 percent.

The ASPI was up 165.73 points at 21,405.38, while the more liquid S&P SL20 was up 0.61 percent, or 37.04 points, at 6,082.42.

Positive contributors to the ASPI were Commercial Bank (up 1.55 percent at 213.25 rupees), Ceylon Cold Stores (up 2.61 percent at 128.00 rupees), Asiri Hospital Holdings (up 10.00 percent at 30.80 rupees), Hemas Holdings (up 1.27 percent at 32.00 rupees), and Ambeon Holdings (up 6.02 percent at 37.00 rupees).

Namunukula Plantations (down 3.92 percent at 63.70 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), and Chevron Lubricants Lanka (down 0.12 percent at 205.25 rupees) were top negative contributors.

Market turnover was 428.31 million rupees. Capital goods led turnover with 82.53 million rupees. (Colombo/Nov09/2026)

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