The Hon. Eranga Weeraratne - Deputy Minister of Digital Economy

¶ 01 Hon. Presiding Member, to make our people-centric energy transition successful, we have restructured the sector under the amended Electricity Act, establishing four companies for generation, transmission, distribution, and system operation. With competitive pricing and efficiency, we can lower costs for industry.

¶ 02 The future of energy is intertwined with the digital economy — our next growth pillar. Artificial Intelligence requires massive data and power for AI data centres. In 2024, AI data centres required around 415 TWh globally (~1.5% of global consumption), potentially doubling by 2030 towards 3%. Over 50% of a data centre’s operating cost can be electricity. A 10 MW data centre may spend USD 8–12 million annually on power alone. Hence, a resilient, dual-grid electricity system with high redundancy is essential; even seconds of outage can cost millions.

¶ 03 Sri Lanka’s location on key submarine cable routes positions us to become a data hub. Prospective investors first ask whether we can provide 24/7 uninterrupted power with redundancy. We therefore plan dual-supply regions and grid resilience upgrades.

¶ 04 We are exploring “data embassies,” where other governments can securely host critical state data in Sri Lanka. This demands the highest level of energy security and dual-grid reliability. With robust power, local telecoms and energy producers can support data centres, and investors are often willing to self-generate green power. We are enabling “power wheeling” so a company can generate renewable power in one location, store it in batteries, and consume it at another facility across the grid. The Ministry is expediting this framework.

¶ 05 We are also digitizing the four new sector companies and LECO. A smart grid will manage generation through to delivery, enhancing reliability and efficiency. Smart meters will help consumers manage usage and reduce waste. By cutting losses, reducing costs, and enabling green power investments and FDIs linked to data centres and digital infrastructure, we aim to position Sri Lanka as a regional digital hub, powered by a modern energy sector. Thank you.