Sri Lanka’s energy sector gets $30m funding boost

This will support promotion of more RE projects.

The Asian Development Bank (ADB) has approved a $30m Small Expenditure Financing Facility (SEFF) for the Ceylon Electricity Board (CEB) to boost the sustainability of energy projects in Sri Lanka.

“This is Sri Lanka's first SEFF, designed to support the operational sustainability of ADB-financed energy projects, promote initiatives to increase the share of renewable energy, and encourage private sector participation in the renewable energy sector, particularly in the context of the country's economic challenges," said ADB Country Director for Sri Lanka Takafumi Kadono.

The facility will fund post-completion activities of ADB-backed projects, feasibility studies for advanced renewable energy technologies, preparatory work for transmission and distribution upgrades, and capacity building in emerging technologies.

Of the $30m, half will be allocated to enhance the operational sustainability of the Moragolla Hydropower Plant, whilst the remaining will support activities aimed at facilitating renewable energy generation and grid integration.

The SEFF is expected to play a crucial role in supporting Sri Lanka’s target to achieve 70% of its electricity generation from renewable energy sources by 2030, as part of its broader energy transition strategy.