November 26, Colombo (LNW): The Asian Development Bank (ADB) has approved a $200 million loan to improve Sri Lanka’s power infrastructure, focusing on modernising transmission and distribution networks and integrating renewable energy sources.
ADB Country Director for Sri Lanka, Takafumi Kadono, emphasized the importance of power sector reforms and infrastructure upgrades to facilitate renewable energy development and reduce power generation costs. The project aligns with the Government of Sri Lanka’s targets of 70% renewable electricity by 2030 and carbon neutrality in electricity generation by 2050.
The initiative includes expanding 220-kilovolt and 132-kilovolt transmission infrastructure, upgrading grid protection systems, and modernising the medium voltage distribution network. Notably, the project will introduce Sri Lanka’s first grid-scale battery energy storage system and establish a renewable energy centre to forecast and monitor energy generation.
In addition to infrastructure improvements, the project supports institutional capacity building for the Ceylon Electricity Board (CEB) and Lanka Electric Company (LECO), incorporating digital solutions and enhancing their ability to manage renewable energy systems. It also includes career development programmes for female employees and training for women-led businesses in adopting clean energy solutions.
Of the $200 million, $150 million is allocated to CEB and $50 million to LECO, with both amounts guaranteed by the Government of Sri Lanka.
The project is a significant step towards enhancing Sri Lanka’s energy security and reliability while supporting its transition to a sustainable energy mix.
