$ 30 m IFC loan to support sustainable energy project

Thursday, 6 November 2025 06:13 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers has approved entering into a loan agreement to secure a $ 30 million loan from the International Finance Corporation (IFC) of the World Bank Group to finance the country’s Secure, Bearable and Sustainable Energy Project.

This financing, originally endorsed by Cabinet on 7 May, is aimed at supporting the Secure, Bearable and Sustainable Energy Project, designed to advance Sri Lanka’s energy security and clean power transition.

“Negotiations with the IFC are currently underway to finalise loan terms. Under the proposed structure, the funding will be channelled to the Ceylon Electricity Board (CEB) or one or more of its affiliated entities as a sub-loan to implement project components,” Cabinet Spokesman Minister Dr. Nalinda Jayatissa said at the post-Cabinet meeting media briefing on Tuesday.

He added that the loan will be obtained in compliance with financial rules and regulations recommended by the Public Debt Management Office, ensuring accountability and prudent debt handling as Sri Lanka continues to rebuild its energy sector and fiscal stability.

“Once concluded, the funding is expected to support key improvements in power system reliability, affordability, and sustainability,” he said.

The proposal was submitted by President Anura Kumara Disanayake in his capacity as the Finance, Planning and Economic Development Minister.