Sri Lanka Secures USD 30M World Bank Loan to Power Renewable Future

COLOMBO (News 1st); The Government of Sri Lanka has signed a USD 30 million financing agreement with the International Development Association (IDA) of the World Bank Group to implement the Secure, Affordable, and Sustainable Energy for Sri Lanka Project. 

The agreement was formalized on December 03, 2025, by Dr. Harshana Suriyapperuma, Secretary to the Treasury, and David N. Sislen, Division Director for Maldives, Nepal, and Sri Lanka of the World Bank Group.

The project aims to address critical technical challenges that have hindered the integration of renewable energy into the national grid. 

By enhancing grid infrastructure, the initiative aligns with the Government’s ambitious power sector policy to generate 70% of electricity from renewable sources by 2030.

In addition to the loan, the World Bank Group plans to introduce a payment guarantee facility to attract private sector investment in renewable energy through various lending instruments.

This comprehensive approach will help scale up renewable energy adoption, strengthen grid reliability, ensure affordable power supply, and build institutional capacity for long-term sector reforms.

The total project cost is USD 60 million, with the first USD 30 million provided under this agreement and the remaining amount expected in a second phase. 

The Ceylon Electricity Board (CEB) will implement the project in coordination with the Ministry of Energy, with the loan facility on-lent to CEB.

This announcement was made by the Department of External Resources on December 08, 2025.