Hydrogen economy as part of energy security
The Government is proceeding with plans to develop a hydrogen economy, with significant focus on green hydrogen, as part of its energy security strategy in the future.
The National Policy on Renewable Hydrogen and Green Hydrogen Roadmap, has been unveiled when the nation still grapples with economic fragility and fiscal constraints, triggering controversy on whether the move is a bold vision or an expensive stake.
According to a strategic report prepared by the Ministry of Power and Energy, the policy “seeks to incorporate hydrogen-related laws into the national governance framework, in order to maintain safety, environmental sustainability, and in compliance with international standards”.
A senior ministry official told the Sunday Times Business that Sri Lanka has little choice but to look beyond fossil fuels. “Our dependence on imported hydrocarbons has left us vulnerable to supply shocks and price volatility. Green hydrogen offers a pathway to secure energy for the future while supporting our climate goals,” the official said.
The hydrogen roadmap also envisions applications in transport, industry, and eventually exports. The ministry notes that hydrogen can decarbonize heavy industries and long-haul transport—sectors difficult to electrify through conventional renewables. “If we are to achieve net-zero targets, hydrogen will have to play a role in our energy mix,” the official added.
Building a hydrogen economy is a massive investment in human capital, technology, and infrastructure. A senior Finance Ministry official warned that, “Sri Lanka has to balance long-term energy needs with short-term fiscal benefits”.
International experts echo these concerns. The finance ministry, in its latest economic outlook, warned that “resource mobilisation for hydrogen must rely heavily on foreign direct investment and concessional financing, given the current fiscal limitations. Safety also remains a key issue. Hydrogen is very volatile, and building up the necessary storage and transmission infrastructure will require advanced training and close supervision.”
Despite these risks, advocates argue early take-up would be rewarding in the long term. Global demand for green hydrogen will go through the roof, especially in Asia and Europe, and Sri Lanka’s geographical position could allow it to tap into export markets.
“This is not just an energy project—it is an opportunity to establish a new industrial value chain, attract investment, and generate employment,” the spokesperson for the energy ministry emphasised.
For now, the government policy on hydrogen economy will be looked closely. Whether Sri Lanka’s hydrogen dream occurs as a pillar of its green future or a costly misadventure will depend on the government’s ability to balance ambition with economic sense.
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