The World Bank has agreed to provide Rs. 9,000 million (US$30 million) in assistance to Sri Lanka to implement a Secure and Sustainable Energy Project.

The Ministry of Finance stated that this financial assistance for the "Secure, Affordable, and Sustainable Energy for Sri Lanka Project" is being provided by the International Development Association (IDA), which is part of the World Bank Group. The Ministry confirmed that the financing agreement for this operation was signed between the Government of Sri Lanka and the IDA. Accordingly, Dr. Harshana Suriyapperuma, Secretary to the Treasury (on behalf of the Government of Sri Lanka), and Mr. David N. Sislen, World Bank Group Country Director for Maldives, Nepal, and Sri Lanka, signed the agreement.

The current grid capacity has become a constraint to the utilisation of renewable energy and presents significant technical challenges. Therefore, this proposed project has been formulated to upgrade infrastructure to facilitate the integration of renewable energy into the grid, consistent with the government's power sector policy, which aims to generate 70% of the country's electricity from renewable sources by 2030.

The investment is further supported by a proposed payment guarantee facility from the World Bank Group for the renewable energy transition, utilising several lending instruments.

Thus, the Secure, Affordable, and Sustainable Energy Project for Sri Lanka advances key objectives such as: expanding the use of renewable energy, strengthening grid infrastructure to ensure a secure and affordable power supply, mobilising private sector participation, and improving institutional capacity to sustain long-term sector reforms.

The Ministry of Finance further noted that the total project cost is US$60 million. Of this, US$30 million will be provided by the World Bank as the first phase of the project, and the remaining US$30 million is expected to be obtained from the World Bank as the second phase. The facility is expected to be provided to the Ceylon Electricity Board (CEB), and the project will be implemented by the CEB in coordination with relevant institutions such as the Ministry of Energy.