PUCSL: New Electricity Act Could Unlock Power Sector FDI via Market Competition 📈

The Public Utilities Commission of Sri Lanka (PUCSL) states that Electricity Act No. 36 of 2024 could significantly boost Foreign Direct Investment (FDI) into Sri Lanka's power & energy sector by ending the single-buyer monopoly. • Market Reform Overview: The new legislation transitions Sri Lanka from a single-buyer model controlled by the Ceylon Electricity Board (CEB) to a multi-buyer/multi-supplier market. • Key Benefits for Sector: Allows private generators to execute direct supply agreements with customers and route power via the national grid. Provides diverse choices for investors, existing industrial power consumers, and household end-users. Unlocks private investments for energy-intensive growth areas, such as data centers, ICT/BPM, and large-scale manufacturing. • Regulatory & Implementation Priorities: Swift execution of secondary legal frameworks is essential to ensure a level playing field. PUCSL stresses establishing transparent, cost-reflective wheeling tariffs that cover grid costs while guaranteeing fair returns for investors.