Asian Development Bank approves USD100M to enhance Sri Lanka's power sector


(MENAFN) On Thursday, the Asian Development bank (ADB) approved a significant policy-based loan amounting to 100 million U.S. dollars aimed at enhancing the financial sustainability of Sri Lanka's power sector.

The program is designed to foster an environment conducive to private investments, promote the development of renewable energy sources, and modernize the country's power grids. Additionally, it aims to support institutional reforms within Sri Lanka's electricity sector by establishing independent entities with clearly defined roles. These reforms will focus on strengthening corporate governance and enhancing financial sustainability across the sector.

Key initiatives under the program include the regular revision of feed-in tariffs for small power plants and rooftop solar users, facilitating the seamless integration of renewable energy projects into the national grid, and implementing a competitive procurement framework for renewable energy initiatives.

To bolster the implementation of these initiatives, the ADB will also provide an additional 1 million dollars in technical assistance grants. This support will aid in capacity building for electricity companies, assist in the development of robust business plans, and contribute to the overall advancement of Sri Lanka's power system development strategies.

The ADB's investment underscores its commitment to supporting Sri Lanka in achieving sustainable and resilient energy solutions, thereby contributing to the country's economic development and environmental goals.

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