Sri Lanka's electric vehicle (EV) population more than tripled in nine months.

However, this increase has coincided with shortcomings in regulatory oversight, policy implementation and environmental safeguards, according to the National Audit Office (NAO).

The NAO's performance audit report, titled 'Electric Vehicle Usage, Post-Usage Management, and Environmental Impact Assessment in Sri Lanka', released in September 2026, found that successive governments had not established a comprehensive framework to manage the transition and ensure its expected economic and environmental benefits. The findings concern the country's transport and energy policies, particularly as Sri Lanka seeks to reduce its dependence on imported fossil fuels and meet its international climate commitments.

EV growth and policy gaps

Despite the increase in EV registrations, infrastructure planning, regulatory oversight and environmental management have not developed at a corresponding pace. The audit identifies the absence of an approved national transport policy as a key gap.

Responsibility for EV-related activities remains divided among government institutions overseeing transport, energy, environmental protection and vehicle registration. This has resulted in separate initiatives, unclear institutional responsibilities and delays in implementing programmes to support electric mobility.

The audit also examines whether the increase in EV registrations is supported by a coordinated national strategy.

Delays in foreign-funded projects

The audit reports delays in implementing an internationally funded electric mobility programme worth approximately US$ 9.65 million, supported by the Global Environment Facility (GEF) and the United Nations Environment Programme (UNEP).

Although approved in September 2022, the project had not become operational during the period examined. The delays were attributed to administrative obstacles, changes in ministerial responsibilities, difficulties in finalising the required cooperation agreement and shortcomings in project monitoring.

Environmental impact and emissions
The audit examines whether Sri Lanka has adequate mechanisms to assess the environmental impact of EV adoption, particularly given the country's continued reliance on fossil fuel-based electricity generation.

It cites a national grid emission factor of approximately 0.83 kg of carbon dioxide per kilowatt-hour, indicating that electricity consumed by EVs contributes to their overall carbon footprint. The report states that their environmental performance must be assessed against the electricity generation mix rather than tailpipe emissions alone.

Renewable energy accounted for approximately 53.5% of Sri Lanka's electricity generation in 2024, while the country aims to increase this share to 70% by 2030. The audit also identifies the electrification of smaller vehicles as an area where emissions could be reduced.

Another gap is the absence of a unified mechanism to measure and verify greenhouse gas emission reductions resulting from EV adoption. Despite its commitments under the Paris Agreement, Sri Lanka has yet to establish a comprehensive measurement, reporting and verification framework for electric mobility.

Without centralised data collection and monitoring, the government cannot reliably assess whether EV policies, incentives and investments are contributing to climate objectives or national targets.

Public awareness and recommendations

A survey of 190 EV users found that only 27% were aware of government policies or incentives relating to electric mobility. This indicates limited awareness of these measures among potential beneficiaries.

The audit states that EV market development requires public awareness initiatives, technical standards, consumer protection measures and long-term planning, in addition to facilitating vehicle imports and encouraging adoption.

The Auditor General has issued 13 recommendations, including the establishment of a national electric mobility framework with clearly defined institutional responsibilities, implementation targets and timelines. Other proposals include improved coordination among government agencies, monitoring procedures and the systematic evaluation of environmental impacts.

Used EV battery management

The audit identifies environmental risks arising from the absence of adequate regulations governing used EV batteries. Although lithium-ion batteries are classified as hazardous waste, the Central Environmental Authority (CEA) has yet to gazette technical guidelines covering their collection, storage, recycling and disposal.

Sri Lanka also lacks a national battery tracking system and dedicated EV battery recycling facilities. Used batteries have reportedly been observed in open storage areas. Although 14 licensed electronic waste collectors operate under the CEA, there is no comprehensive mechanism to track EV batteries from importation through to disposal.

The Auditor General has recommended the introduction of battery disposal guidelines, a tracking system and measures to hold importers accountable for ensuring proper disposal.

EV charging infrastructure

By August 2025, only two EV charging operators had obtained certification from the Public Utilities Commission of Sri Lanka (PUCSL), despite the commission having regulatory authority over the sector since 2009. The certification process began in March 2025.

Inspections in Colombo identified non-operational charging stations and facilities without safety notices or certification labels. Additionally, approximately 40% of the 190 EV users surveyed reported difficulties accessing charging facilities.

The Auditor General has recommended more frequent safety inspections, a centralised register of charging stations and a tariff framework.

Electric bus procurement delayed

A Cabinet-approved project to introduce 200 electric buses into Sri Lanka's public transport system has been delayed following the submission of a fraudulent procurement bond. Approved in 2023, the project was intended to introduce electric buses into the Sri Lanka Transport Board's (SLTB) fleet, primarily for services in Colombo and Gampaha.

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

According to the audit, no action had been taken to restart the procurement process as of October 27th, 2025. The delay has affected the implementation of the project and its expected fuel savings and environmental benefits.

The findings identify gaps in several areas of Sri Lanka's electric mobility transition, including national policy, project implementation, emissions monitoring, battery disposal, charging infrastructure and public transport electrification. The audit recommends establishing and implementing a comprehensive framework to address these areas as EV adoption increases.