Energy Law at Sri Lanka

Certainly! Here’s a detailed overview of Energy Law in Sri Lanka covering its legal framework, institutions, policies, and key features:

⚖️ Legal and Regulatory Framework of Energy in Sri Lanka

Key Legislation:

Electricity Act, No. 20 of 2009
The primary statute regulating electricity generation, transmission, distribution, and sale. It governs the operations of the Ceylon Electricity Board (CEB) and allows for private sector participation.

Sri Lanka Sustainable Energy Authority Act, No. 35 of 2007
Establishes the Sustainable Energy Authority (SEA) responsible for promoting renewable energy, energy efficiency, and conservation.

Ceylon Petroleum Corporation Act, No. 28 of 1961
Governs petroleum import, refining, storage, and distribution activities.

Energy Conservation Fund Act, No. 56 of 2007
Provides for a fund to finance energy conservation and renewable energy projects.

National Environmental Act, No. 47 of 1980 (amended)
Regulates environmental impacts of energy projects, including Environmental Impact Assessments (EIA).

Regulatory Institutions:

Public Utilities Commission of Sri Lanka (PUCSL)
The independent regulator overseeing the electricity sector, licensing, tariff setting, and consumer protection.

Ceylon Electricity Board (CEB)
The state-owned utility responsible for electricity generation, transmission, and distribution.

Sustainable Energy Authority (SEA)
Facilitates renewable energy development, energy audits, efficiency programs, and policy advice.

Ceylon Petroleum Corporation (CPC)
State enterprise handling petroleum products.

🔌 Electricity Sector

Dominated by CEB but private Independent Power Producers (IPPs) also participate.

Mix of energy sources: hydro, coal, oil, natural gas, and growing renewables.

Electricity tariffs regulated by PUCSL to balance affordability and sector sustainability.

☀️ Renewable Energy and Energy Efficiency

Sri Lanka targets increasing the share of renewables (hydro, wind, solar, biomass).

Renewable Energy Policy of Sri Lanka (2006) guides development.

Key programs include:

Net Metering and Net Accounting for rooftop solar.

Financial incentives such as tax holidays, duty exemptions.

Grants and financing via the Energy Conservation Fund.

Oil and Gas Sector

Sri Lanka is a net importer of petroleum products.

CPC controls imports, refining, storage, and distribution.

Exploration activities regulated by the Petroleum Resources Act (drafted but pending full enactment).

Efforts ongoing to explore offshore oil and gas reserves.

🌍 Environmental and Safety Regulations

Energy projects must comply with EIA requirements under the National Environmental Act.

Emission standards and safety regulations enforced by respective agencies.

🌐 International Cooperation and Commitments

Sri Lanka is part of regional energy cooperation platforms such as SAARC Energy Centre.

Active participation in climate change and renewable energy initiatives under the UNFCCC and Paris Agreement.

Receives technical and financial assistance from multilateral agencies (World Bank, ADB, JICA).

Summary

Sri Lanka’s energy law balances ensuring reliable, affordable energy supply with promoting sustainability and renewable energy. The legal framework encourages private investment under government oversight and aligns with environmental protection and climate goals.

 

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