WB clears USD 150 for Lanka’s clean energy push

The World Bank Group has approved a USD 150 million programme titled “Secure, affordable, and sustainable energy for Sri Lanka” to support the country’s shift towards clean energy.

The initiative is aimed at reducing dependence on fossil fuel imports and promoting the development of solar and wind power.

The programme includes measures to modernise the national electricity grid to help integrate renewable energy sources and address recurring issues such as power outages and instability.

According to the World Bank, the initiative will support solar and wind energy projects, and is expected to add 1 gigawatt of electricity to the grid, aligning with Sri Lanka’s stated target of generating 70 percent of its electricity from renewable sources by 2030.

The programme is also expected to attract over USD 800 million in private sector investment.

As part of the first phase, USD 40 million in World Bank Group guarantees will be provided to reduce risks for private investors, particularly regarding payment obligations from the Ceylon Electricity Board (CEB). The World Bank stated that the aim is to improve investor confidence and facilitate financing on more favourable terms.

The International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), both part of the World Bank Group, will contribute through direct investments and political risk insurance. MIGA’s coverage is intended to address concerns from international investors.

Technical assistance will be offered to the CEB to support improvements in planning, procurement, and operations. The programme also includes support for government-led reforms in utility management, regulatory oversight, and competitiveness in the energy sector.