• The Asian Development Bank (ADB) has approved a US $100 million loan to support Sri Lanka's power sector reforms, enhancing operational efficiency, fostering private investment in renewable energy, and improving financial sustainability through institutional and regulatory changes, including a new national tariff policy.

The Asian Development Bank (ADB) has approved a US $100 million policy-based loan to support Sri Lanka's power sector reforms, complementing the International Monetary Fund’s Extended Fund Facility arrangement. The Power Sector Reforms and Financial Sustainability Programme aims to enhance operational efficiency, competitiveness, and create a favorable environment for private investments in renewable energy development and grid modernization. ADB Principal Energy Specialist Jaimes Kolantharaj emphasized that developing cost-competitive renewable energy and providing reliable, affordable electricity with a transparent regulatory framework will drive economic growth and address Sri Lanka's financial crisis. The program will support reforms under the Electricity Act, improve operational sustainability, and accelerate the transition to clean energy as outlined in Sri Lanka’s nationally determined contributions. It will enable institutional reforms by establishing independent companies with defined functions, strengthen corporate governance, and implement a new national tariff policy for financial sustainability through cost-reflective tariffs. Additionally, it will assist in renewable energy expansion plans from 2023 to 2030.

Power sector to receive fresh support with ADB’s US $ 100mn policy-based loan | Daily Mirror