Sri Lanka is set to receive a significant boost to its energy infrastructure, as the Cabinet of Ministers has greenlit a $60 million investment package to modernize the nation’s electricity transmission system.
The funding—spearheaded by the World Bank and the Asian Development Bank (ADB)—was approved at Wednesday’s Cabinet meeting. It falls under a framework of mutual trust established between the government and its international development partners. Additionally, the package includes a $10 million risk guarantee facility from the International Development Institute to safeguard against financial uncertainties.
Upgrading Power for a Renewable Future
The investment will fund ten high-priority power transmission projects identified under the Ceylon Electricity Board’s (CEB) 2023–2032 long-term transmission plan. These projects aim to improve grid reliability, meet growing national electricity demand, and facilitate the integration of renewable energy sources into the system.
“This is a key step in strengthening Sri Lanka’s energy backbone,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa stated during the weekly post-Cabinet press briefing. “It reflects the trust our development partners have placed in our reform path and strategic energy vision.”
Breakdown of Support
Of the total funding, the World Bank will provide $40 million, while the ADB will contribute $30 million. The additional $10 million guarantee facility from the International Development Institute is designed to mitigate risks and enhance the financial security of the projects.
The proposal, submitted by Power and Energy Minister Kumara Jayakody, received unanimous Cabinet approval and is expected to move into the implementation phase later this year.