By: Staff Writer
September 01, Colombo (LNW): The newly elected NPP government is pressing ahead with plans to develop a hydrogen economy, placing green hydrogen at the centre of its long-term energy strategy. The “National Policy on Renewable Hydrogen and Green Hydrogen Roadmap” was unveiled last week, even as Sri Lanka struggles with economic fragility, fiscal constraints, and an ongoing campaign against corruption among opposition politicians.
The Ministry of Power and Energy argues the initiative is essential for national energy security. A senior official said Sri Lanka has “little choice but to look beyond fossil fuels,” noting the country’s dependence on imported hydrocarbons has repeatedly left it vulnerable to global price shocks and supply disruptions. Green hydrogen, he argued, provides a cleaner, more secure pathway while advancing climate commitments.
The roadmap envisions hydrogen applications in industry, transport, and eventually exports. Officials highlight its potential to decarbonize heavy industry and long-haul transport, sectors difficult to electrify through solar or wind. “If we are to achieve net-zero targets, hydrogen must be part of our energy mix,” the official stressed.
But the ambition comes with a steep bill. Hydrogen production requires costly investments in infrastructure, research, and human capital. Finance Ministry officials caution that Sri Lanka must weigh long-term energy security against near-term fiscal realities. With public debt still at unsustainable levels, the ministry’s latest economic outlook states that financing must rely on foreign direct investment and concessional loans.
Safety concerns also loom. Hydrogen is highly volatile, requiring specialized storage and transmission infrastructure. Advanced training and international safety standards will be critical to avoid risks.
International experts note that Sri Lanka could benefit from first-mover advantage in Asia, with demand for green hydrogen expected to surge in Europe and regional markets. “This is not just an energy project it is an opportunity to establish a new industrial value chain, attract investment, and create jobs,” the Energy Ministry spokesperson said.
However, questions remain about feasibility under the NPP government’s governance style. While its anti-corruption drive against opposition politicians has won public support, it has also created friction with bureaucrats and private-sector investors, who are critical to executing large-scale projects. Without building confidence among international financiers and local stakeholders, critics warn the hydrogen roadmap risks becoming another ambitious plan left on paper.
For now, the government faces a balancing act: pursuing a futuristic energy agenda while ensuring macroeconomic stability and political credibility. If managed wisely, the hydrogen economy could reshape Sri Lanka’s energy landscape. But if fiscal and governance challenges persist, the project could become a costly misadventure.
The NPP government has unveiled its “National Policy on Renewable Hydrogen and Green Hydrogen Roadmap,” signalling a push to build a hydrogen economy centred on green hydrogen, despite fiscal constraints and political turbulence.
Officials say the initiative is crucial for energy security as Sri Lanka remains heavily dependent on imported hydrocarbons. A Power Ministry official said green hydrogen could secure future supplies, decarbonize industries, and support climate goals. The roadmap outlines hydrogen use in transport, industry, and exports.
Yet the cost is daunting. Hydrogen infrastructure requires heavy investment, which Finance Ministry officials admit the government cannot fund alone. Foreign direct investment and concessional financing will be essential. The Ministry’s latest outlook cautions that balancing long-term energy security with near-term fiscal stability remains a challenge.
Safety risks also pose hurdles, given hydrogen’s volatility and the need for advanced infrastructure and training. Still, proponents argue Sri Lanka’s strategic location could position it as an exporter to Asia and Europe.
Observers note that the NPP government’s tough stance against opposition corruption has created uncertainty among investors, raising doubts about whether such a capital-intensive project can be delivered.
Whether Sri Lanka’s hydrogen roadmap becomes a pillar of its green future—or a costly gamble—will depend on the government’s ability to attract investment, reassure stakeholders, and maintain political stability.
