ECONOMYNEXT – Foreign investors in Sri Lanka’s wind and solar plant would get political risk insurance of the Multilateral Investment Guarantee Agency, a Washington based affiliate of the World Bank.
The MIGA guarantees are a part of a 150 million US dollar financing package approved by the World Bank group for Sri Lanka on June 20.
“Investors need confidence to take bold steps in new markets,” said Muhamet Fall, Director of Operation with MIGA said in a statement.
“Our guarantees will help de-risk projects and attract the private capital needed to scale up clean energy in Sri Lanka.”
The World Bank said 40 million US dollars in guarantees will “is targeted to derisk payment obligations from Ceylon Electricity Board (CEB), thus improving investors’ confidence and attract financing on more favorable terms.”
Sri Lanka gets $150mn World Bank financing to boost renewables, avoid blackouts
RELATED : Sri Lanka gets $150mn World Bank financing to boost renewables, avoid blackouts
Sri Lanka’s CEB in the past had delayed payments to private power producers due to the the failure of price regulations, especially when the central bank printed money to cut rates and depreciated the currency, pushing up costs of the utility.
The World Bank’s private sector financing arm, the International Finance Corporation would also made direct investments.
“Sri Lanka’s energy transition is an opportunity to expand clean energy, improve energy access, and build long-term resilience,” Imad N Fakhoury, IFC’s Regional Director for South Asia. Said.
“Achieving this requires close collaboration and investment from both public and private sectors.
“As one World Bank Group, we are uniquely positioned to enable and mobilize private capital and foster partnerships that deliver affordable, reliable electricity while driving sustainable growth and creating jobs that strengthen Sri Lanka’s economy and expand opportunities for its people.”
Tenders to build two 50 MegaWatt wind plants on Sri Lanka’s North Western coast is due to close on July 09.
Energy minister Kumara Jayakody said Sri Lanka wanted to call international tenders to bring down the cost of renewable power by improving competition as domestic firms were few and interlinked.
There has been strong competition for smaller plants, which were tendered. Sri Lanka has not got the best pricing for renewable power due to so-called administratively decided feed-in-tariffs and also due to tenders called during an economic crisis. (Colombo/June22/2025)