News Today: Asian Development Bank approves $200 million loan for Sri Lanka’s power sector

The Asian Development Bank (ADB) has approved a $200 million loan to modernize Sri Lanka’s power sector, supporting the transition to renewable energy. The initiative will improve transmission and distribution networks, reduce power interruptions, and enhance grid resilience.

ADB Country Director for Sri Lanka, Takafumi Kadono, emphasized that modernizing infrastructure and adopting digitalization solutions will enable better integration of renewable energy and minimize energy losses. This aligns with Sri Lanka’s 2030 goal of achieving 70% electricity generation from renewables.

The project includes expanding 220-kilovolt and 132-kilovolt transmission lines, introducing the country’s first grid-scale battery energy storage system, and implementing automation systems for efficient power delivery. It also aims to strengthen the Ceylon Electricity Board (CEB) and Lanka Electric Company (LECO) with enhanced renewable energy management and network modernization.

ADB’s funding—$150 million for CEB and $50 million for LECO—comes with reforms to ensure financial sustainability and competitive renewable energy development. This reflects ADB’s commitment to fostering resilient infrastructure and achieving sustainable energy goals.