ECONOMYNEXT – Sri Lanka has signed an agreement to borrow 100 million US dollars from the Asian Development Bank after several policy actions on power sector reforms were completed, the Finance Ministry said.
“This policy-based lending program will support the establishment of independent and financially sustainable electricity utilities,” the Finance Ministry said in a statement.
“It will also support the streamlined and accelerated development of renewable energy sources for electricity generation under the reform areas.
The Ministry of Energy, with the Ceylon Electricity Board, Sri Lanka Sustainable Energy Authority, Lanka Electricity Company Pvt. Ltd., and the Public Utilities Commission of Sri Lanka has achieved all pre-policy actions related to Subprogram 2 of the policy loan, the Finance Ministry said.
The loan proceeds of 100 million dollars will be disbursed to the Treasury once the loan agreement is declared effective.
Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, Cholpon Mambetova, Country Operations Head, ADB Sri Lanka Resident Mission signed the agreement.
Sri Lanka had also begun discussions with ADB to get a 3 million grant for the Cyclone Ditwah Emergency Response Project.
The grant assistance comes from the Asia Pacific Disaster Response Fund of ADB.
It will be used for post-disaster relief and rehabilitation after Cyclone Ditwah.
Grant will be used for activities including, emergency rescue equipment, medical supplies and kits, food supplies, water and sanitation systems, transitional shelter materials, hygiene kits, debris-clearance equipment, aviation fuel, and communication equipment. (Colombo/Dec05/2025)