Sri Lanka secures $ 230 million from ADB energy fund
The Morning: The Asian Development Bank (ADB) has agreed to allocate $ 200 million under two separate tranches for the implementation ADB-related electricity modernisation projects, with $ 150 million to be allocated to the Ceylon Electricity Board and $ 50 million to Lanka Electricity (Pvt) Ltd., a cabinet decision released yesterday (10) said.
Further, the ADB has also approved an additional $ 30 million small expenditure financing facility (SEFF) for the Ceylon Electricity Board (CEB), with regard to ensuring the continuity of existing and future energy sector projects.
ADB Sri Lanka Country Director Takafumi Kadono said: “This is Sri Lanka’s first SEFF, designed to support the operational sustainability of ADB-financed energy projects, promote initiatives to increase the share of renewable energy, and encourage private sector participation in the renewable energy sector, particularly in the context of the country’s economic challenges.”
According to the statement, the first initiative to be carried out under the SEFF will be enhancing the operational sustainability of the Moragolla Hydropower Plant financed by ADB.
Of the total $ 30 million facility, $ 15 million will be allocated to enhance the operational sustainability of the Moragolla Hydropower Plant, while the remaining $ 15 million will support activities aimed at facilitating renewable energy generation and grid integration.
The SEFF of $ 30 million is allocated crucially for supporting Sri Lanka’s target to achieve 70% of its electricity generation from renewable energy sources by 2030, as part of its broader energy transition strategy.
OSL take:
Sri Lanka’s energy industry is a fast-expanding sector to meet the increasing demand with the country on the path to becoming a regional hub. The country’s power sector therefore requires substantial investments in renewable energy infrastructure, grid modernisation, and energy storage solutions in order to meet the growing demand in the country in-line with the overall economic expansion. With Sri Lanka’s commitment to expanding the renewable energy generation capacity in the country, there have been a host of new business/investment opportunities in the renewable energy sector. The growth and profits recorded by local businesses engaged in Sri Lanka’s renewable energy sector is indicative of the expanding business/investment opportunities in the sector. The growth and business potential in the renewable energy sector is further evident by the interest shown by leading foreign businesses in the renewable energy sector to explore and invest in opportunities presented in Sri Lanka. Foreign businesses/investors could therefore confidently explore the expanding business/investment opportunities in the renewable energy sector while also looking at expanding operations through local collaborations.
Article Code : | VBS/AT/20241216/Z_6 |