Vidullanka makes Rs. 100 m first equity infusion in 6.6 MW biomass plant

Wednesday, 16 September 2026 00:20 - - {{hitsCtrl.values.hits}}

Vidullanka PLC yesterday said it has subscribed to 1,000,000 ordinary shares in Vidul Biomass II Ltd., for a total consideration of Rs. 100 million, representing the first equity infusion toward its 6.6 MW Medawachchiya Dendro Power Project.

Vidul Biomass II is the project company undertaking to build, own and operate the proposed greenfield plant in Medawachchiya, Anuradhapura District, with an installed capacity of 6.6 MW gross and 5 MW net.

The facility will be the Group’s second biomass-to-energy plant, following its 3.3 MW Dehiattakandiya Biomass Power Plant in Ampara, and is designed to generate base-load electricity using sustainable fuel wood sourced through established out-grower schemes and local plantations managed by the Group’s plantation division.

The total project cost is estimated at $ 16.1 million, with total equity commitment of approximately Rs. 1,300 million. Vidullanka said the remaining equity commitment and project-level debt will be funded in progressive tranches as construction advances, with the plant expected to be formally commissioned and grid-connected by mid of the next financial year, FY 2027/28.

The Company said the Medawachchiya project would serve as a strategic stabiliser for its power generation portfolio, providing a natural hedge against seasonal variations affecting output from its other renewable energy sources. Vidullanka also said the project would generate economic impact in the Anuradhapura region by expanding its agricultural out-grower network and supporting rural farming livelihoods.