The Government of Sri Lanka has arranged a loan of USD 30 million from the International Development Association (IDA) of the World Bank Group to finance the implementation of the Secure, Affordable, and Sustainable Energy for Sri Lanka Project. The Financing Agreement for this operation was signed on December 03, 2025, by Dr. Harshana Suriyapperuma, Secretary to the Treasury, and Mr. David N. Sislen, Division Director for Maldives, Nepal, and Sri Lanka of the World Bank Group, on behalf of the Government of Sri Lanka and the IDA, respectively.

The grid capacity have been hindered the utilization renewable energy presenting significant technical challenges, therefore, the proposed project has been formulated to enhance the infrastructure facilities  to facilitate the grid integration of renewably energy in alignment with the Government’s power sector policy, aimed at generating 70 percent of the country’s electricity from renewable sources by 2030.This investment will be further complemented by the proposed payment Guarantee facility by the World Bank group to sale up the private sector investment for Renewable Energy Transformation though number of lending instrument by the World Bank Group. Therefore, the Secure, Affordable, and Sustainable Energy for Sri Lanka Project will advance key objectives such as scaling up renewable energy adoption, strengthening grid infrastructure to ensure secure and affordable power supply, mobilizing private sector participation, and enhancing institutional capacity to sustain long-term sector reforms.

The total project cost is USD 60 million, out of which USD 30 million will be provided by World Bank as the first phase of the project and balance 30 million is expected obtained by the World Bank as second phase.  It is expected to on lend the loan facility to Ceylon Electricity Board.

The project will be implemented by the Ceylon Electricity Board, in coordination with relevant agencies such as the Ministry of Energy.