• Vehicle population surges from 30,000 to over 100,000 in 9 months
• Audit exposes policy shortcomings, stalled $ 9.65 m foreign-funded project

Sri Lanka’s Electric Vehicle (EV) population has more than tripled in just nine months, rising from approximately 30,000 in September 2025 to over 100,000 by June this year, raising questions over the Government’s preparedness to manage the rapid expansion of the sector amid serious regulatory shortcomings, policy gaps, and inadequate environmental safeguards.  

The National Audit Office (NAO), in its performance audit report titled ‘Electric Vehicle Usage, Post-Usage Management, and Environmental Impact Assessment in Sri Lanka,’ released in September, reveals that despite the increasing adoption of EVs, successive administrations have failed to establish a comprehensive framework to ensure the anticipated economic and environmental benefits of electric mobility.  

The findings raise concerns over the effectiveness of Sri Lanka’s long-term transport and energy policies, particularly at a time when the country is attempting to reduce its dependence on imported fossil fuels while meeting international climate commitments.

EV growth

According to the audit, the number of EVs in Sri Lanka increased more than threefold within a span of nine months by June this year, reflecting a substantial expansion of the sector within a relatively short period. 

However, the growth has not been matched by corresponding improvements in regulatory oversight, infrastructure planning, or environmental management. 

Despite this expansion, the audit identifies the absence of an approved national transport policy as a fundamental weakness affecting the development of a coordinated electric mobility programme. 

Responsibility for EV-related activities remains distributed among several Government institutions, including those overseeing transport, energy, environmental protection, and vehicle registration. 

The lack of an overarching framework has resulted in fragmented initiatives, uncertainty over institutional responsibilities, and delays in implementing programmes intended to facilitate the transition. 

Consequently, the audit raises questions over whether the rapid growth in EV registrations is being supported by a sufficiently coordinated national strategy.

Foreign funding 

Among the significant concerns identified by the auditors is the prolonged delay in implementing an internationally funded programme intended to promote electric mobility in Sri Lanka. 

The report refers to a project valued at approximately $ 9.65 million, supported by the Global Environment Facility (GEF) and the United Nations Environment Programme (UNEP), which received approval in September 2022. 

Despite the availability of international support, the programme had not become operational during the period examined by the audit. 

The auditors attribute the delay to administrative obstacles, changes in ministerial responsibilities, difficulties in finalising the necessary cooperation agreement, and weaknesses in project monitoring arrangements.

Environmental benefits

Although EVs are widely promoted as a cleaner alternative to conventional petrol- and diesel-powered vehicles, the audit questions whether Sri Lanka possesses adequate mechanisms to determine the actual environmental benefits of its transition. 

One of the central concerns is the country’s continued dependence on fossil fuel-based electricity generation. 

The audit notes that the environmental advantages of EVs must be assessed against the electricity generation mix, rather than considering the absence of tailpipe emissions alone. It cites a national grid emission factor of approximately 0.83 kg of carbon dioxide per kilowatt-hour, indicating that electricity consumed by EVs can still carry a substantial carbon footprint. 

While EVs eliminate direct exhaust emissions during operation, their overall environmental performance depends partly on how the electricity used to power them is generated. 

According to the report, renewable energy accounted for approximately 53.5% of Sri Lanka’s electricity generation in 2024, while the country has set a target of achieving 70% renewable electricity generation by 2030. 

Nevertheless, the audit identifies considerable potential for emissions reductions through the electrification of smaller vehicles.

Emission reductions

Another major deficiency highlighted by the audit is the absence of a unified national mechanism to measure and verify greenhouse gas emission reductions associated with electric mobility. 

Although Sri Lanka has made international commitments under the Paris Agreement, the report indicates that the relevant institutions have not established a comprehensive measurement, reporting, and verification framework specifically covering emission reductions from EV adoption. 

Such a mechanism would be essential in determining whether policies, incentives, and investments intended to promote EVs are delivering measurable environmental improvements. 

Without reliable data, it becomes difficult to assess the effectiveness of Government interventions or determine whether the expected climate benefits are being achieved. The absence of a coordinated monitoring system also raises concerns regarding the accuracy and consistency of information used to evaluate progress towards national climate targets. 

The auditors therefore emphasise the importance of establishing a centralised framework capable of collecting, analysing, and reporting data on emissions reductions across the electric mobility sector.

Public awareness

The audit also identifies shortcomings in public awareness regarding Government policies and incentives aimed at encouraging the use of EVs. 

A survey involving 190 EV users found that only 27% were aware of Government policies or incentives relating to electric mobility. The finding suggests that policy measures introduced to encourage EV adoption have not necessarily been communicated effectively to the intended beneficiaries. 

It also highlights the need for greater public engagement as the country moves towards new transport technologies. The audit findings further suggest that expanding the EV market requires more than facilitating vehicle imports or encouraging individual consumers to adopt new technologies. 

It demands an integrated approach combining public awareness, technical standards, consumer protection, and long-term planning.

Recommendations

The Auditor General has presented 13 recommendations aimed at addressing the shortcomings identified during the audit. Among the central proposals is the establishment of a comprehensive national electric mobility framework, clearly defining institutional responsibilities, implementation targets, and timelines. 

The recommendations also emphasise the need for stronger coordination among Government agencies, improved monitoring mechanisms, and a more systematic approach to evaluating the environmental benefits of EVs. However, the audit indicates that the principal challenge is not merely the identification of policy requirements but their implementation. 

Ultimately, the audit raises a fundamental question: whether Sri Lanka’s transition to electric mobility is being driven by a coherent national policy or whether Government institutions are struggling to keep pace with a market that has already moved ahead.

Used EV batteries

Sri Lanka faces growing environmental risks as regulations governing the disposal of used Electric Vehicle (EV) batteries remain inadequate, the Auditor General has warned. 

Although lithium-ion batteries are classified as hazardous waste, the Central Environmental Authority (CEA) has yet to gazette its technical guidelines covering their collection, storage, recycling, and disposal. 

The audit reveals that Sri Lanka lacks a national battery tracking system and dedicated EV battery recycling facilities, while used batteries are observed being stored in the open. 

Although 14 licensed electronic waste collectors operate under the CEA, no comprehensive mechanism exists to monitor EV batteries from importation to disposal. 

The Auditor General has recommended urgently enforcing battery disposal guidelines, introducing a tracking system, and holding importers accountable for environmentally sound disposal.

EV charging operators

Only two Electric Vehicle (EV) charging operators had obtained certification from the Public Utilities Commission of Sri Lanka (PUCSL) by August 2025, despite the commission having regulatory authority since 2009, the Auditor General has revealed. 

The certification process commenced only in March 2025, exposing significant delays in regulating the rapidly expanding sector. 

Auditors identified non-operational charging stations and facilities lacking safety notices and certification labels during inspections in Colombo. 

Meanwhile, approximately 40% of 190 surveyed EV users reported difficulties accessing convenient charging facilities. 

The Auditor General has called for stronger safety inspections, a centralised charging station register, and a transparent tariff framework.

200 electric buses 

A Cabinet-approved project to introduce 200 electric buses to Sri Lanka’s public transport system has stalled following the submission of a fraudulent procurement bond, according to the Auditor General. 

The project, approved in 2023, aimed to introduce electric buses to the Sri Lanka Transport Board (SLTB), primarily serving Colombo and Gampaha. 

Although 10 prospective bidders purchased tender documents, only one submitted a proposal. The sole bidder was disqualified after the submitted bond was found to be fraudulent, resulting in the termination of procurement on 20 July 2024. 

The audit reveals that as of 27 October 2025, no action had been taken to restart the procurement process, delaying anticipated fuel savings and environmental benefits.