World Bank supports clean energy transition with $ 150 million
The Morning: The World Bank Group (WB) has approved a new $ 150 million programme to support Sri Lanka’s move toward clean, reliable, and affordable energy.
The programme — Secure, Affordable, and Sustainable Energy for Sri Lanka—will support the country to reduce its reliance on expensive fossil fuel imports and accelerate its shift toward solar and wind.
“This programme will help deliver clean, affordable electricity to families and businesses across Sri Lanka. We are excited to work with both the government and private sector to make this shared vision a reality,” said World Bank Maldives, Nepal and Sri Lanka Division Director David Sislen.
The programme will support new solar and wind energy projects that will add one-gigawatt of clean electricity to the grid – bringing Sri Lanka closer to its goal of generating 70% of its electricity from renewable sources by 2030.
The programme is also expected to mobilise more than $ 800 million in private investment, helping to lower electricity costs and improve reliability for families and businesses.
A core feature of the initiative includes $ 40 million in World Bank Group guarantees in the first phase.
This will help reduce risks for private investors and energy producers. It is targeted to de-risk payment obligations from Ceylon Electricity Board (CEB), thus improving investors’ confidence and attracting financing on more favourable terms.
The World Bank Group’s private sector arms – the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) – will provide complementary support through direct investments and political risk insurance.
IFC South Asia Regional Director Imad N. Fakhoury said: “Sri Lanka’s energy transition is an opportunity to expand clean energy, improve energy access, and build long-term resilience. Achieving this requires close collaboration and investment from both public and private sectors. As one World Bank Group, we are uniquely positioned to enable and mobilise private capital and foster partnerships that deliver affordable, reliable electricity while driving sustainable growth and creating jobs that strengthen Sri Lanka’s economy and expand opportunities for its people.”
MIGA will support the programme by offering political risk insurance to help reduce uncertainty for international investors.
MIGA Operations Director Muhamet Fall said: “Investors need confidence to take bold steps in new markets. Our guarantees will help de-risk projects and attract the private capital needed to scale up clean energy in Sri Lanka.”
The programme also supports the upgrades to Sri Lanka’s electricity grid, enabling it to better handle renewable energy and reduce power outages. This modernisation will help stabilise electricity prices and improve energy access for households and businesses across the country.
In addition, the initiative will provide technical assistance to the CEB to strengthen planning, procurement, and operations, and support government-led reforms to improve competitiveness, utility management, and regulatory oversight.
OSL take:
Sri Lanka’s ongoing economic growth and expansion have expanded the country’s power and energy industry. This expansion would witness a further growth push with Sri Lanka fast becoming an emerging business destination in the South Asian region while working to achieve regional hub status. All these factors have resulted in the expansion of business/investment opportunities in Sri Lanka’s power and energy industry, especially on the renewable and clean energy generation. The commitment of the Sri Lankan government to expand the country’s renewable and clean energy generation component have also added to the growth witnessed in the business/investment opportunities in the country’s power and energy industry. The growth and profits recorded by local businesses engaged in the renewable and clean energy sector as well as the interest shown in the sector by many big foreign businesses/investors are indicative of the increasing business potential in Sri Lanka’s power and energy industry, especially in the renewable and clean energy sector. Apart from the direct opportunities, the renewable and clean energy sectors present a host of opportunities in the supplementary sectors in the power and energy industry as well. Given all these, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka’s growing power and energy industry, especially in the renewable and clean energy sectors.
| Article Code : | VBS/AT/20250626/Z_1 |