Sri Lanka has good natural conditions for offshore wind and there is already private sector interest in developing projects. Sri Lanka has an opportunity to use this domestic renewable energy resource as part of its transition to net-zero carbon and to help reduce the economic burden from fossil fuel imports. The main drivers for developing offshore wind in Sri Lanka include: Decarbonization: The Government of Sri Lanka has set a goal of 70 percent of electricity generation from renewable sources in 2030 and to achieve carbon neutrality in electricity generation by 2050. Furthermore, Sri Lanka’s Nationally Determined Contributions (NDCs) under the Paris Agreement include a commitment of no capacity addition of coal power plants. In 2021, around 48 percent of Sri Lanka’s electricity was supplied by renewable resources (almost entirely hydro) and the rest of the supply was dominated by oil and coal-fired thermal power. Electricity demand is also expected to grow by an annual rate of five percent for the coming 20 years. As individual onshore wind and solar PV projects in Sri Lanka to date have tended to be small, and land is a precious resource, their deployment rate could be insufficient to fully meet the 2030 target. Offshore wind has the potential to provide a large-scale contribution to help achieve the government’s decarbonization targets, especially in the longer term.