The World Bank Group yesterday approved a new US$ 150 million program to support Sri Lanka’s move towards clean, reliable, and affordable energy. The program—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 program will help deliver clean, affordable electricity to families and businesses across Sri Lanka,” said World Bank Division Director for the Maldives, Nepal and Sri Lanka, David Sislen. “We are excited to work with both the Government and private sector to make this shared vision a reality.”
The program 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 percent of its electricity from renewable sources by 2030. The program is also expected to mobilise more than US$ 800 million in private investment, helping to lower electricity costs and improve reliability for families and businesses.
A core feature of the initiative includes US$ 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 attract financing on more favorable 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.
“Sri Lanka’s energy transition is an opportunity to expand clean energy, improve energy access, and build long-term resilience,” said Imad N Fakhoury, IFC’s Regional Director for South Asia. “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.”
