Sri Lanka has taken a major step towards reshaping its energy landscape, launching a National Renewable Hydrogen Policy and a Just Energy Transition (JET) Study with support from the United Nations Development Programme (UNDP). Officials say the twin initiatives are designed to position the island as a regional hub for renewable hydrogen while ensuring an equitable shift to clean energy.
Hydrogen Policy and Financing Framework
The hydrogen roadmap was presented at the recent Renewable Hydrogen Stakeholder Consultation Workshop: From Strategy to Actions, jointly organized by the Ministry of Energy, the Sri Lanka Sustainable Energy Authority (SLSEA), and UNDP. The event brought together policymakers, private investors, financiers, academics, and international experts to discuss how Sri Lanka could build a viable hydrogen economy.
According to the UNDP, Sri Lanka’s abundant renewable energy resources—particularly wind and solar offer the potential to produce hydrogen that can decarbonize power generation, heavy industry, and transport. The policy outlines measures to integrate hydrogen into the energy mix, establish safety standards, and attract foreign investment.
The government also launched the Integrated National Financing Framework (INFF) Strategy for the Energy Sector, which provides recommendations for mobilizing both domestic and international finance. The INFF aims to align public and private resources with Sri Lanka’s renewable energy goals, helping accelerate a fair and inclusive transition.
Just Energy Transition
The JET study, developed with UNDP technical expertise, highlights practical pathways for Sri Lanka to reduce dependence on fossil fuels without leaving vulnerable communities behind. It emphasizes job creation, energy affordability, and protecting workers affected by the shift to renewables.
“This study ensures people remain at the centre of the transformation,” said Marina Ten, Officer-in-Charge of UNDP in Sri Lanka. “Taken together, the hydrogen policy, INFF, and JET provide Sri Lanka with the tools to attract investment, drive innovation, and deliver a clean energy transition that leaves no one behind.”
Official Statements
Energy Secretary K. T. M. Udyanaga Hemapala described renewable hydrogen as a catalyst for both energy independence and industrial competitiveness. “By embracing renewable hydrogen, we are taking a decisive step towards climate resilience while securing our energy future,” he said.
SLSEA Chairman Wijendra J. Bandara stressed the importance of practical implementation. “Our responsibility is to ensure policy becomes action on the ground. From infrastructure to safety standards and governance, we are committed to building a robust ecosystem for hydrogen to thrive.”
A Game-Changer for Investment and Security
Analysts note that renewable hydrogen could transform Sri Lanka into a regional energy hub, attracting international investment at a time when the country is struggling to rebuild its economy. It is also expected to diversify energy sources and reduce exposure to fossil fuel price volatility, a key vulnerability highlighted during the island’s recent financial crisis.
UNDP officials said the INFF will help connect Sri Lanka’s ambitions with resources, enabling the government to unlock the financing needed to meet both national development goals and the UN’s Sustainable Development Goals (SDGs).
With global demand for clean hydrogen expected to surge in coming decades, Sri Lanka’s early move into this sector could position the nation as a strategic player in the Indian Ocean energy corridor provided the policy framework swiftly translates into concrete investments and projects.
