The World Bank Group has approved a new \$150 million program to support Sri Lanka’s transition to clean, reliable, and affordable energy.
Titled “Secure, Affordable, and Sustainable Energy for Sri Lanka,” the program aims to reduce dependence on costly fossil fuel imports and accelerate the country’s shift to solar and wind energy.
According to the World Bank, the initiative will add 1 gigawatt of clean energy to the national grid, advancing Sri Lanka’s goal of sourcing 70% of its electricity from renewables by 2030.
World Bank Division Director David Sislen stated that the program will help deliver clean and affordable electricity to homes and businesses across the country.
A key component includes \$40 million in World Bank guarantees in the first phase to reduce risks for private investors and energy producers, specifically addressing payment risks from the Ceylon Electricity Board (CEB).
The program is expected to mobilize over \$800 million in private investments, contributing to lower electricity costs and improved power reliability.
The International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) will support the initiative through direct investments and political risk insurance, respectively.
MIGA Director Muhamet Fall emphasized that de-risking through guarantees is crucial to attract private capital and scale up clean energy projects.
Additionally, the initiative will support technical upgrades to Sri Lanka’s power grid, improve energy access, and reduce outages.
The program also includes technical assistance to CEB and supports regulatory reforms aimed at improving competitiveness and utility governance.
By combining financial resources, expertise, and partnerships, the World Bank Group aims to help Sri Lanka achieve energy security and foster sustainable economic growth.
