⚡ FTZ Manufacturers Push for Urgent Energy Reforms to Save Export Competitiveness

The Free Trade Zone Manufacturers’ Association (FTZMA) met with Energy Minister Aruna Karunathilake to present crucial policy proposals aimed at lowering operational costs and protecting Sri Lanka's position as an attractive export manufacturing hub. Key Demands & Issues Raised: • Operationalise Power Wheeling: Manufacturers urged the immediate implementation of the regulatory framework for power wheeling. This will allow factories to buy cheaper renewable electricity directly from independent producers using the national grid, reducing reliance on expensive traditional power. • Industrial Diesel Pricing Review: The FTZMA highlighted an unfair pricing structure where less-refined industrial diesel is priced higher than highly-refined auto diesel. They requested a price reduction to eliminate this artificial inflation of production costs for apparel & textiles and other heavy export industries. • Dedicated Zone Fuel Stations: The association pressed for the urgent setup of two dedicated fuel stations within the Katunayake and Biyagama Export Processing Zones. These facilities would grant priority fuel access during supply shortages, safeguarding logistics and preventing costly production delays. Why it Matters: High energy costs are currently eroding Sri Lanka's regional edge. The FTZMA stressed that making energy costs globally competitive is vital for long-term economic diversification, maintaining national employment, and attracting fresh foreign direct investment.