Solar power project gets USD35m ADB backing

Agreements to secure a $35 million concessional loan from the Asian Development Bank (ADB) and additional grants for the 'Grid-Based Rooftop Solar Power and Virtual Net Meter Reading' project received approval from Sri Lanka’s Cabinet of Ministers.

The Department of Government Information stated that the initiative aims to enhance the distribution and effective utilisation of solar energy, support independent power producers, and expand small- and medium-scale renewable energy ventures.

The government previously approved proposals to negotiate project financing with the ADB and other relevant entities. Following discussions with the ADB, the European Union, and the Japanese Fund for the Joint Crediting Mechanism, officials finalised the agreements to secure the financial aid.

President Anura Kumara Dissanayake, in his capacity as the Minister of Finance, Planning and Economic Development, submitted the proposal to sign the loan and grant agreements.

The complete financing package consists of the $35 million ADB concessional loan, a €15.4 million grant from the European Union, and a $5.5 million grant from the Japanese Fund for the Joint Crediting Mechanism.