# Sri Lanka renewable energy and offshore exploration

> Live situation record from CLSTR: https://clstr.news/situations/sri-lanka-renewable-energy-expansion
> Updated: 2026-08-24T10:02:04.000Z. Sources: 7. Developments: 2.

Sri Lanka is advancing its renewable energy transition through large-scale solar development and the integration of Battery Energy Storage Systems (BESS) to improve grid stability and reduce diesel reliance. While solar expansion in the Hambantota district has faced scrutiny from conservationists regarding habitat loss, the Public Utilities Commission of Sri Lanka (PUCSL) has moved forward with strategic policy measures.

The PUCSL has approved new renewable energy tariffs that include specific incentives for battery storage. This policy aims to stabilize electricity prices and reduce reliance on thermal generation by allowing surplus solar energy to be stored for use during peak demand. These measures support the national target of adding 450 MW of solar and battery capacity to the grid by March 2027.

In a parallel move to bolster energy security, the government is seeking to tap into hydrocarbon resources by opening four offshore exploration blocks in the Mannar Basin to international oil and gas companies. This licensing round is managed by the Petroleum Development Authority of Sri Lanka to reduce dependence on costly fuel imports.

Climate volatility remains a significant concern. The Department of Meteorology has warned that El Niño conditions may lead to increased rainfall and flooding risks in October and November. In response to these extreme weather patterns associated with the El Niño–La Niña cycle, opposition leaders have called for a modernized disaster management framework.

## Claims

- Sri Lanka has opened four offshore exploration blocks in the Mannar Basin for oil and gas licensing. (corroborated by 3 sources)
- The PUCSL has approved new renewable-energy tariffs, including rates for battery storage. (corroborated by 2 sources)
- The government aims to add at least 450 MW of solar and battery storage capacity to the national grid by March 2027. (single source)
- Rooftop solar systems with battery storage between 250 kW and 1,000 kW will receive Rs. 45.53 per unit for 15 years during priority periods. (single source)
- The PDASL is conducting a 2026 licensing round for the Mannar Basin blocks. (single source)
- The Department of Meteorology forecasts that rainfall in October and November could exceed normal seasonal levels due to El Niño. (single source)

## Timeline

### 2026-08-24: Sri Lanka introduces new energy tariffs and opens Mannar Basin for exploration

Sri Lanka introduces new renewable energy tariffs with battery storage incentives and opens four Mannar Basin offshore blocks for international oil and gas exploration to enhance energy security.

7 sources. https://clstr.news/cluster/sri-lanka-introduces-new-renewable-energy-feed-in-tariffs

### 2026-08-10: Sri Lanka expands renewable energy via solar and battery storage

Sri Lanka is expanding its renewable energy infrastructure through new solar projects and battery storage systems, while facing conservation concerns over habitat loss for Indian peafowl in Hambantota.

6 sources. https://clstr.news/cluster/sri-lanka-expands-renewable-energy-via-solar-and-battery-storage

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Cite as: Sri Lanka renewable energy and offshore exploration. CLSTR, https://clstr.news/situations/sri-lanka-renewable-energy-expansion