FTZMA calls for solutions to energy challenges facing exporters

Sri Lanka must urgently reform its energy policy, lower industrial power costs, operationalise power wheeling, and improve fuel access for export manufacturers to prevent high costs from undermining global competitiveness.

The Free Trade Zone Manufacturers’ Association (FTZMA) raised these concerns and presented targeted proposals to strengthen the operating environment and boost investment attractiveness during a meeting with Energy Minister Aruna Karunathilake.

A primary issue highlighted was the delayed implementation of power wheeling, which prevents manufacturers from buying renewable electricity directly from independent producers via the national grid due to an incomplete regulatory framework.

The association also urged a price review of industrial diesel, noting that it is unfairly priced higher than auto diesel despite being a less-refined fuel used for machinery, which inflates production costs.

Furthermore, the association called for the establishment of two dedicated fuel stations within the Katunayake and Biyagama Export Processing Zones to secure uninterrupted fuel access and prevent production delays during supply shortages.