The World Bank Group has approved a $150 million program aimed at supporting Sri Lanka’s transition to clean, reliable, and affordable energy.
The initiative, titled “Secure, Affordable, and Sustainable Energy for Sri Lanka,” is designed to help the country cut down on costly fossil fuel imports and expand its renewable energy capacity—particularly in solar and wind power.
“This program will help deliver clean, affordable electricity to families and businesses across Sri Lanka,” said David Sislen, World Bank Director for the Maldives, Nepal, and Sri Lanka. “We are excited to work with both the government and private sector to make this shared vision a reality.”
The program will support projects to add 1 gigawatt of renewable energy to Sri Lanka’s power grid, bringing the country closer to its goal of generating 70% of electricity from renewable sources by 2030. It is also expected to catalyze more than $800 million in private investment, which could help lower electricity costs and improve reliability.
A key feature includes $40 million in guarantees from the World Bank Group in the first phase. These guarantees are intended to reduce investor risk by covering certain payment obligations of the Ceylon Electricity Board (CEB), thereby improving investor confidence and encouraging more favorable financing terms.
The World Bank Group’s private sector arms—the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA)—will provide complementary support through direct investments and political risk insurance.
“Sri Lanka’s energy transition is an opportunity to expand clean energy, improve access, and build long-term resilience,” said Imad N. Fakhoury, IFC Regional Director for South Asia. “Collaboration between public and private sectors is essential to achieving this vision.”
MIGA Director of Operations Muhamet Fall added that investor confidence is key to scaling up clean energy: “Our guarantees will help de-risk projects and attract the private capital needed for Sri Lanka’s renewable ambitions.”
The program also includes grid upgrades to improve the reliability of electricity supply and support for policy and institutional reforms. Technical assistance will be provided to the CEB to enhance planning, procurement, and operations, while supporting broader reforms to strengthen utility governance and regulatory oversight.
The World Bank Group said this comprehensive approach—combining financing, technical expertise, and private sector engagement—aims to expand energy access and lay a solid foundation for Sri Lanka’s long-term sustainable growth.
