Sri Lanka has secured a US$30 million loan from the International Development Association (IDA) of the World Bank Group to support the implementation of the Secure, Affordable and Sustainable Energy for Sri Lanka Project.
The Financing Agreement was signed by Treasury Secretary Dr. Harshana Suriyapperuma on behalf of the Government of Sri Lanka, and David N. Sislen, Division Director for Maldives, Nepal, and Sri Lanka, on behalf of the IDA.
The Ministry of Finance stated that limitations in the national grid have hindered the effective use of renewable energy, creating significant technical challenges. As a result, the new project has been designed to upgrade infrastructure to support the integration of renewable energy, in line with the government’s policy goal of generating 70% of electricity from renewable sources by 2030.
The investment will be strengthened through a World Bank payment guarantee facility aimed at increasing private sector participation in the renewable energy sector. This includes various lending instruments designed to accelerate the country’s transition to clean energy.
According to the Ministry, the project will help scale up renewable energy adoption, improve grid infrastructure to ensure a stable and affordable power supply, enhance institutional capacity, and support long-term energy sector reforms.
The total cost of the project is estimated at US$60 million. The first phase will be financed by the US$30 million loan already approved, while the remaining US$30 million is expected to be secured in the second phase from the World Bank.
The Ceylon Electricity Board (CEB) will lead the implementation of the project, working in collaboration with the Ministry of Energy and the Ministry of Finance.
