Wednesday Dec 10, 2025
Wednesday Dec 10, 2025
Wednesday, 10 December 2025 03:05 - - {{hitsCtrl.values.hits}}
Sri Lanka has secured a $ 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, a key initiative aimed at accelerating the country’s transition to renewable energy.
The financing agreement was signed on 3 December 2025 by Treasury Secretary Dr. Harshana Suriyapperuma and World Bank Division Director for Maldives, Nepal and Sri Lanka, David N. Sislen, representing the Government of Sri Lanka and the IDA, respectively.
A statement issued by the Finance Ministry External Resources Department noted that Sri Lanka’s current grid capacity has become a major constraint in integrating additional renewable energy, posing significant technical challenges.
The new project is designed to expand and modernise grid infrastructure to accommodate higher volumes of clean power in line with the national policy target of generating 70% of electricity from renewable sources by 2030.
The initiative will also be supported by a proposed World Bank payment guarantee facility intended to scale up private sector investment in renewable energy projects.
Through a range of financial instruments, the broader program aims to unlock private capital, strengthen institutional capacity, and ensure a stable and affordable power supply.
The total project cost is estimated at $ 60 million.
The World Bank will provide $ 30 million under the first phase, while the remaining $ 30 million is expected under a second phase of financing.
The loan facility is expected to be on-lent to the Ceylon Electricity Board (CEB), which will implement the project in collaboration with the Energy Ministry and other relevant agencies.
