Proprietary data
Data Center Power & Policy in Sri Lanka
Every government action on data centers and power in Sri Lanka that we have verified: moratoriums, grid rules, incentives, tariffs and plans, with the power indicators that drive site selection.
By Amit Jain
Reviewed by Deepti Agrawal
Updated 10 October 2026
In short
As of 10 October 2026, DC Market Insights tracks 8 government actions on data centers and power in Sri Lanka, 0 of them in force. We have found no moratorium or restriction on new data centers in force in Sri Lanka.
Market snapshot
Sri Lanka power and policy: key facts
- Renewable share of electricity generation: 60.2% (2025). Rank 1 of 19 tracked countries, highest first.
- Latest change: Sri Lanka and Japan discuss a National AI Data Centre (Ministry of Digital Economy, 15 Aug 2026).
- By type: 5 plan or strategy, 2 incentive and 1 regulation.
Power indicators for Sri Lanka
Latest official figure for each indicator, with earlier years where we have them.
In force now in Sri Lanka
We have not yet verified an action in force for Sri Lanka. Announced and proposed measures are listed below.
Announced and proposed
Measures that are not yet in force. Status changes when the rule takes effect or is withdrawn.
Sri Lanka and Japan discuss a National AI Data Centre
The Deputy Minister of Digital Economy and a JICA delegation discussed establishing a National AI Data Centre and local production of digital TV set-top boxes. No formal decision was reported.
Funds set aside for an electricity subsidy for data centres
The Deputy Minister of Digital Economy said a budget for an electricity subsidy has been allocated for data centres, to be used if a subsidy is needed to match electricity costs at a world benchmark level. He said more than 20 proposals for data centres had been received by the Board of Investment and were being assessed. No amount or tariff terms were given.
GovCloud 3.0 RFI: sovereign hyperscaler and AI cloud platform on 2-3 Tier III data centres in Sri Lanka
The Ministry of Digital Economy and GovTech Sri Lanka (Private) Limited issued a Request for Information for a Sovereign Hyperscaler and AI Cloud Platform (GovCloud), using 2-3 Sri Lanka-based Tier III (or higher) data centres and multiple hyperscale technology providers.
Ministry of Energy: establishment of data centres integrating the energy and digital sectors initiated
In an 11 November 2025 speech to Parliament during the Budget 2026 debate, published by the Ministry of Energy, the Minister of Energy said the government has initiated the establishment of data centres that will integrate the energy sector and the digital sector, to bring in higher income and use the energy the country produces.
Budget 2026: LKR 750 million allocated to establish an AI data centre
Daily FT coverage of the Budget 2026 reports that, in addition to the data centre hub measures, LKR 750 million has been allocated to establish an AI data centre.
750 LKR million Allocation as reported by Daily FT, 8 Nov 2025
Budget 2026: data centre hub incentives with LKR 500 million initial allocation
Section 6 (Modernisation and Digitalisation) of the Budget Speech 2026, delivered on 7 November 2025, says Sri Lanka has high potential to become a regional hub for data centres. It proposes attracting data centre investment through financial incentives, green-energy incentives, low-cost electricity at the initial stage and concessional land, and allocates LKR 500 million for 2026 as an initial step. The same section allocates LKR 3,000 million for next-generation digital infrastructure including AI, cloud computing and data centres. No implementing regulation found.
500 LKR million Initial 2026 allocation for data centre hub measures; separate LKR 3,000 million for digital infrastructure including data centres
ICTA draft Government Cloud Policy v1.7: CSPs with Tier 3 certified data centres; agencies to minimise data centre usage and expansion
The draft Government Cloud Policy (v1.7) prepared by ICTA would require government organisations to choose cloud service providers with a Tier 3 certified data centre, directs government organisations to take all efforts to minimise the usage and expansion of data centres, IT storage or processing infrastructure, and keeps high-sensitivity data and its copies/backups within Sri Lanka's legal boundaries. The document is marked draft.
Timeline of data center and power policy in Sri Lanka
| Date | Action | Type | Status | Authority |
|---|---|---|---|---|
| 15 Aug 2026 | Sri Lanka and Japan discuss a National AI Data Centre | Plan or strategy | Proposed | Ministry of Digital Economy |
| 24 May 2026 | Funds set aside for an electricity subsidy for data centres | Incentive | Announced | Ministry of Digital Economy |
| 8 May 2026 | GovCloud 3.0 RFI: sovereign hyperscaler and AI cloud platform on 2-3 Tier III data centres in Sri Lanka | Plan or strategy | Announced | Ministry of Digital Economy; GovTech Sri Lanka (Private) Limited |
| 2 Dec 2025 | BOI and Ministry of Digital Economy RFI: Development of Data Centre and Cloud Infrastructure in Sri Lanka | Plan or strategy | Expired | Board of Investment of Sri Lanka; Ministry of Digital Economy |
| 12 Nov 2025 | Ministry of Energy: establishment of data centres integrating the energy and digital sectors initiated | Plan or strategy | Announced | Ministry of Energy |
| 7 Nov 2025 | Budget 2026: LKR 750 million allocated to establish an AI data centre | Plan or strategy | Announced | Ministry of Finance, Planning and Economic Development (Budget 2026) |
| 7 Nov 2025 | Budget 2026: data centre hub incentives with LKR 500 million initial allocation | Incentive | Announced | Ministry of Finance, Planning and Economic Development (Budget Speech 2026) |
| 26 May 2022 | ICTA draft Government Cloud Policy v1.7: CSPs with Tier 3 certified data centres; agencies to minimise data centre usage and expansion | Regulation | Proposed | Information and Communication Technology Agency of Sri Lanka (ICTA) |
How Sri Lanka compares
Latest official figures for the countries we track.
| Country | Industrial power price | Renewable share | Grid emission factor | Restrictions in force | Incentives in force |
|---|---|---|---|---|---|
| Australia | — | 39% (2025) | — | 0 | 2 |
| Bangladesh | — | 2% (2025) | — | 0 | 0 |
| France | 104 USD/MWh (2025) | 27% (2025) | 0.02 kgCO2/kWh (2025) | 0 | 1 |
| Germany | 180 USD/MWh (2025) | 58.8% (2025) | 0.34 kgCO2/kWh (2025) | 1 | 0 |
| India | 82.1 USD/MWh (2025) | 28.7% (2026) | 0.68 kgCO2/kWh (2025) | 0 | 5 |
| Indonesia | 62.9 USD/MWh (2024) | 16.3% (2025) | 0.68 kgCO2/kWh (2024) | 0 | 1 |
| Ireland | 234 USD/MWh (2025) | 41.3% (2024) | 0.20 kgCO2/kWh (2025) | 2 | 0 |
| Japan | — | 23.1% (2024) | 0.45 kgCO2/kWh (2024) | 0 | 0 |
| Kazakhstan | — | 14.6% (2025) | 0.81 kgCO2/kWh (2025) | 0 | 0 |
| Malaysia | 105 USD/MWh (2026) | 21% (2025) | 0.74 kgCO2/kWh (2024) | 1 | 1 |
| Nepal | — | — | — | 0 | 0 |
| Netherlands | 148 USD/MWh (2025) | 49% (2025) | 0.20 kgCO2/kWh (2024) | 4 | 0 |
| Pakistan | 97.5 USD/MWh (2026) | 34.7% (2025) | — | 0 | 1 |
| Singapore | 189 USD/MWh (2025) | 2.1% (2024) | 0.40 kgCO2/kWh (2024) | 0 | 0 |
| South Korea | — | 9.8% (2025) | — | 0 | 0 |
| Sri Lanka | — | 60.2% (2025) | — | 0 | 0 |
| United Arab Emirates | 120 USD/MWh (2026) | 8.8% (2024) | 0.47 kgCO2/kWh (2024) | 0 | 0 |
| United Kingdom | 234 USD/MWh (2026) | 52.1% (2025) | 0.15 kgCO2/kWh (2026) | 1 | 1 |
| United States | 86.2 USD/MWh (2025) | 24% (2025) | 0.35 kgCO2/kWh (2023) | 0 | 1 |
| Uzbekistan | 83.3 USD/MWh (2026) | 19.4% (2025) | — | 1 | 0 |
Questions
Is there a data center moratorium in Sri Lanka?
We have found no moratorium or restriction on new data centers in force in Sri Lanka as of 10 October 2026. Proposed or announced measures, if any, are listed in the timeline.
How much of Sri Lanka’s electricity is renewable?
Renewables supplied 60.2% of electricity generation in Sri Lanka in 2025.
Where does this data come from?
Each action comes from a page we opened: a law, regulation, gazette notice, ministry or regulator release, grid operator notice or investment agency page, and only when official text is not available a company or trade publication. A second analyst re-opens the source before an item is published. Government sources are linked on the page; all sources come with the Excel data.
What counts as a restriction or moratorium?
A government or grid operator rule that stops, pauses, caps or conditions new data center capacity or grid connections, for a country or a region within it. Proposals are shown as proposed until they take effect.
How are power prices compared?
We use each country’s official statistics for industrial or non-household electricity, converted to US dollars per MWh at the average rate for the year where needed, and show the year and source. Contract prices for data centers can differ.
How often is it updated?
Countries are reviewed on a rolling schedule and changes are added as they are announced. Each item shows the date of the action.
Choosing a market or a site?
Our analysts prepare country briefings on power, grid access, incentives and permits, with every source, in Excel.