The Government of Sri Lanka has arranged a loan of USD 30 million from the International Development Association (IDA) of the World Bank Group to finance the implementation of the Secure, Affordable, and Sustainable Energy for Sri Lanka Project.
The Financing Agreement for this operation was signed on December 03, 2025, by Dr. Harshana Suriyapperuma, Secretary to the Treasury, and Mr. David N. Sislen, Division Director for Maldives, Nepal, and Sri Lanka of the World Bank Group, on behalf of the Government of Sri Lanka and the IDA, respectively.
The grid capacity constraints have hindered the utilization of renewable energy, presenting significant technical challenges. Therefore, the proposed project has been formulated to enhance infrastructure facilities to facilitate the grid integration of renewable energy, in alignment with the Government’s power sector policy, which aims to generate 70 percent of the country’s electricity from renewable sources by 2030.
This investment will be complemented by the proposed Payment Guarantee Facility by the World Bank Group to scale up private sector investment for renewable energy transformation through a number of lending instruments provided by the World Bank Group.
The total project cost is USD 60 million, of which USD 30 million will be provided by the World Bank as the first phase of the project, while the remaining USD 30 million is expected to be obtained from the World Bank in the second phase.
It is expected that the loan facility will be on-lent to the Ceylon Electricity Board (CEB).
The project will be implemented by the Ceylon Electricity Board, in coordination with relevant agencies such as the Ministry of Energy.
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