According to the gazette, capital goods imported “for the purpose of construction of renewable energy or energy storage facilities” will be eligible for tax concessions during their construction phase. The exemptions will apply to projects with a capacity of 1 megawatt (MW) or higher, including both new facilities and expansions of existing ones.
The move is aimed at supporting Sri Lanka’s transition toward cleaner energy and enhancing national energy security. The government has already called for proposals to develop battery energy storage systems on a build-operate-own (BOO) basis, as well as solar and wind power plants across the island.
Officials said the decision is part of a broader initiative to attract private investment in the renewable sector, reduce reliance on fossil fuels, and meet the country’s long-term renewable energy targets.
