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Energy project due process: Is the Govt. bypassing environmental guidelines?

Energy project due process: Is the Govt. bypassing environmental guidelines?

23 Nov 2025 | By Maheesha Mudugamuwa


Concerns are mounting over the Government’s apparent rush to approve large-scale renewable energy projects without proper environmental scrutiny.

The alleged projects under scrutiny include a 100 MW plant in Jaffna, two 100 MW plants in Trincomalee, a 100 MW wind farm in Puttalam, another in Hambantota, and additional ventures such as the 100 MW solar plant in Oddamavadi, a 100 MW project in Batticaloa, a 50 MW wind power project in Puttalam, a 100 MW project in Trincomalee, and a 100 MW project in Punanai West.

Reliable sources allege that there are attempts to bypass the standard Environmental Impact Assessment (EIA) process entirely, or to proceed with only a cursory Initial Environmental Examination (IEE) that barely scratches the surface.

Solar industry experts suggest that the Government may be attempting to push these projects forward with nothing more than Cabinet approval, sidestepping established environmental safeguards and raising serious questions about transparency, accountability, and the long-term ecological consequences of these mega projects.

Centre for Environmental Justice (CEJ) Co-Founder Hemantha Withanage emphasised that EIAs were mandatory for certain projects in Sri Lanka, such as hydro (50 MW), thermal (25 MW), nuclear, or renewable energy projects over 50 MW. He noted that the deciding factor was the location: “Even if a project has a smaller capacity, if it is in an environmentally sensitive area, an EIA is required.”

Withanage acknowledged that there had been instances where authorities had bypassed the law or ignored EIAs, but social pressure had often forced such projects to be suspended. He cited recent examples, including projects by global conglomerates and several wind power initiatives, which faced suspension due to public opposition. 

“If the Government or any other party tries to bypass the law, social pressure will emerge and the matter will end up in court. The wise course is always to follow the proper procedures,” he said.


What the law says


According to the Central Environmental Authority (CEA), the legal foundation for EIAs in Sri Lanka is established primarily under the National Environmental Act (NEA) No.47 of 1980, as amended by Act No.56 of 1988 and Act No.53 of 2000. 

The 1988 amendment introduced the EIA process as an essential tool for achieving sustainable development nationwide, assigning major regulatory authority to the CEA. Under Part IV C of the amended act, all “prescribed projects” must undergo an environmental assessment prior to implementation.

These prescribed projects – typically large-scale developments likely to cause significant environmental impacts – are listed in Gazette No.772/22 of 24 June 1993, No.1104/22 of 5 November 1999, and No.1108/1 of 29 November 1999. If such a project is located in an environmentally sensitive area, it must undergo a full EIA regardless of its scale.

The NEA further stipulates that prescribed projects are processed through a Project Approving Agency (PAA). At present, 23 Government institutions are designated as PAAs, each responsible for administering the EIA process for specific types of projects. When more than one PAA is relevant, the CEA decides which agency should serve as the appropriate PAA. 

Importantly, if a Government agency is itself the project proponent, it cannot act as the PAA for that project. The official list of PAAs appears in Gazette Extraordinary No.859/14 of 23 February 1995 and Gazette Extraordinary No.1373/6 of 29 December 2004.

Under the NEA, two levels of assessment are recognised: the IEE and the EIA. If a proposed project is expected to generate only limited environmental impacts, the project proponent may be required to prepare an IEE, which is shorter and less complex. If the impacts are potentially significant, a full EIA is required. In both cases, the project proponent must prepare the relevant report according to Terms of Reference (TOR) issued by the PAA. 

While EIA reports must be opened for public inspection and comment for a mandatory 30 working days, IEE reports are exempt, though they are still considered public documents under Sections 74 and 76 of the Evidence Ordinance and are available for public inspection upon request.

In addition to the NEA, EIAs may be required under several other environmental laws. The Coast Conservation Act No.57 of 1981, as amended by Act No.49 of 2011, was the first legislation in Sri Lanka to introduce EIA requirements. This act applies to any development within the legally defined coastal zone, and the decision to require an EIA lies with the director general of the Coast Conservation and Coastal Resource Management Department.

EIA provisions also exist under the Fauna and Flora Protection Act (FFPA) No.49 of 1993, amended by Act No.22 of 2009. Any development activity proposed within one mile of the boundary of a national reserve must undergo an EIA and receive written approval from the director general of the Department of Wildlife Conservation (DWC) before implementation. 

These additional legal provisions ensure that developments in ecologically sensitive or protected areas receive a higher level of environmental scrutiny, complementing the broader framework established under the NEA.

Under the National Environmental Act, only “prescribed projects” listed in Gazette Notifications 772/22 of 1993, 859/14 of 1995, and 1104/22 of 1999 are required to undergo an IEE or a full EIA.

These prescribed projects include large-scale development activities such as major river basin and irrigation schemes, land reclamation over four hectares, clearing of land exceeding 50 hectares, forest conversions larger than one hectare, and timber extraction over five hectares.

Mining and mineral extraction activities, including deep mining beyond 25 metres, large-scale surface mining, offshore mining, and mechanised quarrying near residential areas, also fall under this category. 

Major infrastructure projects – such as highways longer than 10 km, railways, airports, airstrips, ports, and harbours – require environmental assessments, as do power generation projects including hydroelectric plants above 50 MW, thermal plants above 25 MW, nuclear facilities, and renewable energy installations exceeding 50 MW. Transmission lines longer than 10 km and above 50 kV are also included.


SLSEA stance 


Solar renewable energy projects occupying less than 50 acres can proceed with an IEE unless the project site falls within an environmentally sensitive area, Sri Lanka Sustainable Energy Authority (SLSEA) Chairman Prof. T.M.W.J. Bandara told The Sunday Morning. 

“If the land extent is less than 50 acres, you can go for an IEE,” Prof. Bandara explained. “But it depends on the land location. If it is in a sensitive area, you have to do the EIA. They will tell you that after considering the scoping meeting.”

He outlined the approval process for solar projects, noting that developers must first submit a pre-feasibility report, land ownership documents, and financing details to the SLSEA. “You have to apply with the pre-feasibility report and you have to submit details about land ownership and finance. All documents have to be submitted to the SLSEA,” he said.

The SLSEA then evaluates the submission and seeks concurrence from the Ceylon Electricity Board (CEB) before referring the project to its Project Approving Committee. “If it receives CEB approval, we will submit it to the Project Approving Committee. After that, we can issue the provisional land approval depending on the other agencies’ decisions,” Prof. Bandara said.

Once provisional approval is issued, project proponents must submit the Project Information Questionnaire (PIQ) to the relevant environmental authority. “You have to submit the application and the PIQ to the CEA, the Forest Department, or the DWC, depending on the location,” he said, adding that in most cases the CEA handled the process. “It will do the scoping, etc. It is the agency issuing the EIA and the IEE.”

Prof. Bandara stressed that it was the CEA – not the SLSEA – that decided whether a project should undergo an IEE or a full EIA. “The CEA will decide; it has the authority to determine that,” he emphasised.

Addressing concerns about large-scale projects, he confirmed that developments such as the proposed 100 MW project in Jaffna and the 200 MW project in Trincomalee required full EIAs. “These have to go for the EIA. With projects involving over 50 acres, they have to be published to get public opinion as well,” he said.

Responding to allegations that some CEA officials may be permitting large-scale projects to proceed with only an IEE, Prof. Bandara said he could not comment on internal decisions of the authority, noting that it was a matter best discussed with CEA officers. 

He added, however, that the SLSEA’s role ended at issuing provisional approval for studies, after which the CEA made the environmental determination. “Based on the studies, it will determine which steps to follow,” he said.

Nevertheless, when contacted by The Sunday Morning, Energy Ministry Secretary and CEB Chairman Prof. Udayanga Hemapala stressed that the Government would sign Power Purchase Agreements (PPA) only for the projects that had EIAs.




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