Sri Lanka has secured a loan of US$ 30 million 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,” aimed at enhancing the nation’s renewable energy capacity.
The Financing Agreement was signed by Dr. Harshana Suriyapperuma, Secretary to the Treasury, and David N. Sislen, Division Director for Maldives, Nepal, and Sri Lanka at the World Bank Group.
According to the Ministry of Finance, the project has been designed to address current grid limitations that hinder the effective use of renewable energy. Upgrading infrastructure will be central to enabling greater integration of renewable power sources, in line with the government’s policy target of generating 70% of electricity from renewables by 2030.
The investment will also be supported by a World Bank–backed payment guarantee facility to encourage private sector participation in renewable energy development. This initiative aims to expand renewable energy use, strengthen grid infrastructure, ensure a secure and affordable power supply, attract private investment, and build institutional capacity for long-term sector reforms.
The total cost of the project is estimated at US$ 60 million, with the World Bank providing US$ 30 million in the first phase. The remaining US$ 30 million is expected to be allocated in a second phase.
The Ceylon Electricity Board (CEB) will implement the project in coordination with the Ministry of Energy and the Ministry of Finance.
