In 2025, low-carbon sources supplied about 61% of Sri Lanka’s electricity consumption, while fossil fuels supplied the remaining 39%. Hydropower was the largest source, providing about 40%, followed by solar at 15% and wind at 4%. Geothermal and biofuels together contributed around 1%. Clean electricity therefore supplied well over half of consumption, although fossil fuels still accounted for a substantial share, with associated climate and air-pollution impacts.

Is Electricity Growing in Sri Lanka?

Sri Lanka’s clean electricity generation is growing: hydropower and solar each added 1.1 TWh in 2025, a combined increase of 2.2 TWh over the previous year. This followed gains of 1.1 TWh from hydropower and 0.7 TWh from solar in 2024. These are encouraging increases, but the supplied data do not establish whether total electricity generation or consumption grew, because changes in fossil generation, other sources and electricity trade are not provided. Sustained growth in clean electricity would help meet future demand from electrification and expanding digital services.

Suggestions

Sri Lanka can build on solar’s already substantial contribution by expanding rooftop installations and larger solar projects, supported by stronger grids and electricity storage. Lebanon, where solar supplies almost a third of electricity, offers a useful regional-scale comparison, while the US state of California demonstrates a similarly large solar share of 30%. Sri Lanka could also expand wind generation, drawing lessons from Uruguay, where wind supplies almost a third of electricity, and from the island electricity system of Ireland, where it provides 34%. Alongside these technologies, Sri Lanka should consider developing nuclear electricity: nearby Pakistan generates 13% of its electricity from nuclear, while the United Arab Emirates generates 20%. These examples offer opportunities to study the institutions, skills and planning needed to add dependable low-carbon generation.

History

Historically, Sri Lanka’s low-carbon electricity growth has been dominated by hydropower, with substantial year-to-year fluctuations. Hydro generation rose by about 0.9 TWh in both 1984 and 1993, before falling by 1.2 TWh in 1996 and 1 TWh in 2000. Gains returned in 2006 and 2010, but the 2010s brought repeated reversals: a strong 3.6 TWh increase in 2013 was followed by a 2.4 TWh decline in 2014, and further gains in 2015 and 2018 alternated with losses in 2016 and 2019. The early 2020s continued that pattern, with a 2.3 TWh increase in 2021 followed by a 1.9 TWh decline in 2022. More encouragingly, both hydro and solar grew in 2024 and 2025, with solar adding about 1.8 TWh across those two years—a promising broadening of Sri Lanka’s clean electricity supply.

Electricity Imports and Exports

Balance of Trade