Sri Lanka Receives US$30 Mn World Bank Loan For Renewable Energy Projects

(MENAFN- Colombo Gazette) The Government of Sri Lanka has secured a US$30 million loan from the International Development Association (IDA) of the World Bank Group to support the Secure, Affordable, and Sustainable Energy for Sri Lanka Project.

The Financing Agreement was signed by Dr. Harshana Suriyapperuma, Secretary to the Treasury, and David N. Sislen, World Bank Group Division Director for Maldives, Nepal, and Sri Lanka.

According to the Finance Ministry, Sri Lanka's grid capacity has faced challenges in integrating renewable energy. The project aims to strengthen infrastructure to facilitate renewable energy integration, supporting the government's goal of generating 70 percent of the country's electricity from renewable sources by 2030.

The initiative will also include a World Bank payment guarantee facility to encourage private sector investment. Key objectives include scaling up renewable energy adoption, enhancing grid infrastructure for secure and affordable power, mobilizing private sector participation, and building institutional capacity for long-term sector reforms.

The total project cost is estimated at US$60 million, with US$30 million funded under the first phase by the World Bank and the remaining US$30 million expected under the second phase. The Ceylon Electricity Board will implement the project in coordination with the Ministry of Energy and other relevant agencies.

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