The Federation of Renewable Energy Developers (FRED) has warned that Sri Lanka’s renewable energy sector faces collapse unless the government intervenes over unpaid dues amounting to Rs. 10 billion.

FRED stated that payments for renewable energy supplied to the national grid have been halted since December 2025, with around Rs. 2.5 billion due each month.

The federation claimed the National System Operator (NSO) has prioritised payments for diesel and heavy fuel power generation due to shortfalls in coal power supply.

According to FRED, rising thermal power generation costs linked to global geopolitical tensions have worsened the situation.

The federation called for urgent Treasury and Cabinet intervention, warning that continued payment delays could severely impact the country’s renewable energy industry and future power supply stability.