Sri Lanka has entered a decisive phase in its renewable energy transition, moving beyond policy discussions to actively seeking investors for large-scale green hydrogen and ammonia projects aimed at positioning the country as a future exporter of clean energy.
The Board of Investment (BOI) recently concluded its Request for Information (RFI) process on June 5, 2026, inviting both local and international investors to submit proposals for green hydrogen and ammonia development projects. Officials say the initiative marks the first major investment drive following years of feasibility studies and policy preparation.
According to senior BOI officials, the government now considers green hydrogen a strategic priority as Sri Lanka pursues its target of generating 70 percent of its electricity from renewable sources by 2030. Rather than allowing surplus electricity generated from solar and wind farms to go unused during off-peak hours, authorities plan to convert excess renewable power into green hydrogen through electrolysis. The hydrogen can then be stored, used domestically or converted into green ammonia and methanol for export.
The investment drive follows the adoption of the National Policy on Renewable Hydrogen in Sri Lanka, prepared jointly by the Ministry of Energy, the Sri Lanka Sustainable Energy Authority (SLSEA) and the United Nations Development Programme (UNDP). The policy establishes the legal and regulatory framework governing hydrogen production, storage, transportation and exports.
Energy Ministry documents indicate Sri Lanka ultimately aims to install around 30 gigawatts of electrolyser capacity by 2048 as part of its long-term carbon neutrality strategy. Such capacity would place the country among emerging hydrogen-producing nations in Asia, provided sufficient renewable energy generation is developed.
The government’s latest approach represents a notable shift from earlier administrations that primarily focused on preparing strategic roadmaps. While a National Hydrogen Roadmap was introduced in 2023, officials say implementation accelerated from May 2026, with greater emphasis on investment and regulation rather than planning alone.
Regulatory preparations are also progressing simultaneously. Since August 2025, the SLSEA has been drafting health, safety and infrastructure regulations governing hydrogen production facilities. Officials expect the legal framework to be completed before construction begins on the first commercial projects, addressing safety concerns often associated with hydrogen storage and transportation.
Research collaborations are also expanding. A Memorandum of Understanding signed in March 2025 between Sri Lankan institutions and Norwegian company Greenstat Hydrogen paved the way for Green Mobility pilot projects and the establishment of a Centre of Excellence for Hydrogen at the University of Peradeniya. These initiatives are expected to strengthen local technical expertise while supporting industrial development.
Officials believe the combination of policy certainty, regulatory development and investment promotion could transform Sri Lanka into a regional green hydrogen hub. However, industry analysts caution that achieving the ambitious targets will depend on attracting substantial foreign investment, expanding renewable electricity generation and ensuring that supporting infrastructure keeps pace with planned hydrogen production. The coming years will determine whether Sri Lanka can successfully convert its renewable energy potential into a globally competitive clean fuel industry.