Sri Lanka’s green energy shift gets $150m boost

The budget will fund solar and wind projects.

Sri Lanka has received a $150m funding boost from the World Bank that will support its transition to cleaner energy sources, reducing its reliance on fossil fuel imports.

In a statement, the World Bank said the allocation will support new solar and wind energy projects that will add 1 gigawatt to the grid. This will help Sri Lanka in achieving its goal of generating 70% of its electricity from renewable sources by 2030.

Sri Lanka’s electricity grid will also benefit from the funding through allocations for upgrades to better handle renewable energy and reduce power outages.

The programme will also mobilise more than $800m in private investment.

“A core feature of the initiative includes $40m in World Bank Group guarantees in the first phase,” the World Bank said, noting that this will specifically derisk payment obligations from Ceylon Electricity Board.

The bank’s private sector arms will provide complementary support through direct investments and political risk insurance.