World Bank Approves $30 Million Loan for Sustainable Energy in Sri Lanka

The Government of Sri Lanka has secured a $30 million loan from the International Development Association (IDA) of the World Bank Group to fund the first phase of the Secure, Affordable, and Sustainable Energy for Sri Lanka Project.

The Financing Agreement was signed on December 3, 2025.

Project Goals:

• Renewable Energy Integration: The project aims to enhance infrastructure facilities to facilitate the seamless integration of renewable energy into the national grid.

• National Policy Alignment: This investment supports the government’s power sector policy to generate 70% of the country’s electricity from renewable sources by 2030.

• Addressing Constraints: The project directly addresses grid capacity constraints that have previously hindered the utilization of renewable energy.

The total cost for the two-phase project is $60 million, with the remaining $30 million expected from the World Bank in the second phase. The loan facility will be on-lent to the Ceylon Electricity Board (CEB), which will implement the project in coordination with the Ministry of Energy.

Source: https://hirunews.lk/en/business/434978/usd-30mn-loan-from-the-world-bank-for-sustainable-energy-project-in-sri-lanka