IFC and WindForce PLC partner on first largescale solar project marking a significant step in Sri Lanka’s transition toward renewable energy and long-term energy security. The initiative is expected to reduce electricity costs while supporting economic recovery.
IFC and WindForce PLC partner on first largescale solar project to boost energy security
The International Finance Corporation (IFC), part of the World Bank Group, has announced a strategic partnership with WindForce PLC to develop the country’s first utility-scale 100MW solar power facility. The project represents a major milestone in Sri Lanka’s renewable energy roadmap, with the potential to transform the power sector by increasing the share of clean energy in the national grid.
The solar facility is expected to generate approximately 220 gigawatt-hours (GWh) of electricity annually, contributing meaningfully to the Government’s target of achieving 50% to 70% renewable energy in the power mix by 2030. In addition to increasing capacity, the project is designed to enhance grid reliability and reduce dependence on imported fossil fuels, a critical issue given Sri Lanka’s vulnerability to global energy price fluctuations.
From an economic standpoint, the project is positioned to deliver substantial benefits. Authorities estimate that more than 3,000 jobs will be created during the development and operational phases, spanning both skilled and semi-skilled roles. This is expected to strengthen local capacity in renewable energy and infrastructure development, while supporting broader employment generation.
IFC’s involvement includes an investment of up to $18 million through a local currency loan, supported by the IDA21 Private Sector Window Local Currency Facility. This financing structure is intended to mitigate currency risks and attract private sector participation in large-scale infrastructure projects. In addition to capital investment, IFC will provide advisory support across key operational areas, including engineering, procurement, maintenance, sustainability, grid resilience, and cybersecurity.
The partnership is aligned with the World Bank Group’s broader strategy to scale up renewable energy in Sri Lanka. It complements ongoing initiatives such as the Secure, Affordable, and Sustainable Energy Program, which includes targeted investments to strengthen transmission infrastructure and institutional capacity. By integrating solar power generation with future battery storage solutions, the project also aims to address intermittency challenges associated with renewable energy.
IFC and WindForce PLC partner on first largescale solar project at a time when Sri Lanka faces some of the highest electricity costs in the region. With annual electricity demand estimated at 15,000 to 16,000 GWh, the need for affordable and reliable domestic power sources has become increasingly urgent. Expanding renewable energy capacity is seen as a key strategy to stabilise the energy sector and improve competitiveness across industries.
WindForce PLC Managing Director Manjula Perera described the collaboration as a defining milestone for the company, highlighting the significance of partnering with a globally recognised development finance institution. He noted that the investment would accelerate the company’s efforts to expand renewable energy and energy storage capabilities, reinforcing its long-term vision for sustainable growth.
From the perspective of the World Bank Group, the project represents a critical step in mobilising private capital for infrastructure development. Country Manager Gevorg Sargsyan emphasised that reliable and affordable power is fundamental to attracting investment and sustaining economic growth. He also pointed out that this transaction marks IFC’s first infrastructure energy investment in Sri Lanka since the economic crisis, and the first such deal in over a decade.
IFC and WindForce PLC partner on first largescale solar project with the broader objective of de-risking Sri Lanka’s renewable energy market. By blending concessional finance with private investment, the initiative is expected to encourage further capital inflows into the sector, accelerating the deployment of solar power and battery energy storage systems.
Beyond immediate economic and operational benefits, the project is also expected to contribute to environmental sustainability. Increasing the share of renewable energy in the national grid will reduce greenhouse gas emissions and support Sri Lanka’s commitments to climate action. At the same time, improved energy security will reduce exposure to external shocks, creating a more resilient energy system.
As Sri Lanka continues its recovery from recent economic challenges, investments in infrastructure and renewable energy are likely to play a central role in shaping future growth. The partnership between IFC and WindForce demonstrates how targeted financial support, combined with technical expertise, can drive meaningful progress in critical sectors.