By: Staff Writer
December 11, Colombo (LNW): The Asian Development Bank (ADB) has sanctioned a $30 million Small Expenditure Financing Facility (SEFF) for the Ceylon Electricity Board (CEB), guaranteed by Sri Lanka, to enhance the sustainability of current and future energy sector projects.
“This marks Sri Lanka’s first SEFF, tailored to sustain ADB-funded energy projects, promote renewable energy adoption, and encourage private sector investment in renewables, particularly amidst the nation’s economic challenges,” stated ADB Country Director for Sri Lanka, Takafumi Kadono.
He explained that the facility will fund post-completion tasks of ADB-supported projects, feasibility studies for advanced renewable technologies, preparatory efforts for transmission and distribution upgrades, and capacity-building initiatives in emerging technologies.
The inaugural activity under SEFF will focus on improving the operational sustainability of the ADB-financed Moragolla Hydropower Plant.
This facility is pivotal for Sri Lanka’s goal of generating 70% of its electricity from renewable sources by 2030, a milestone in its energy transition strategy.
Achieving this target demands significant investment in renewable energy infrastructure, grid modernization, energy storage systems, and policy reforms to attract private investments and international funding.
SEFF complements Sri Lanka’s broader power sector reform agenda, supported by ADB’s Power Sector Reforms and Financial Sustainability Program and the recently approved Power System Strengthening and Renewable Energy Integration project.
Its approval underscores ADB’s ongoing commitment to Sri Lanka’s energy sector, acknowledging the progress made in implementing critical power sector reforms.
These reforms aim to strengthen the sector’s financial sustainability, introduce cost-recovery tariff adjustments, and promote competitive renewable energy development.
The facility will also enhance the institutional capacity of the CEB, enabling it to manage renewable energy systems more effectively, adopt digital solutions, and guide the sector toward a sustainable and resilient energy future.
Of the total $30 million, $15 million is allocated for improving the Moragolla Hydropower Plant’s operational sustainability, while the remaining $15 million will support initiatives to expand renewable energy generation and integrate it into the national grid.
ADB remains dedicated to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while striving to eliminate extreme poverty. Founded in 1966, ADB is owned by 69 members, 49 of which are from the region.
