ADB grants $150 million to boost Sri Lanka’s power grid and renewable energy

The Asian Development Bank (ADB) and the Ceylon Electricity Board (CEB) have signed an agreement for a USD 150 million loan to support crucial projects aimed at enhancing the stability and reliability of Sri Lanka’s electricity grid.

The signing ceremony took place today (December 19), with ADB’s Country Director for Sri Lanka, Takafumi Kadono and CEB General Manager, Ronald Comester, signing the agreement in the presence of Finance Ministry Secretary, Mahinda Siriwardena.

Initial discussions to secure this loan through the Government of Sri Lanka began in October 2024 and ADB approved the loan package in November 2024 after a thorough evaluation of the technical, economic and social aspects of CEB’s investment proposals.

The funds will be utilized to implement several essential projects under CEB’s long-term transmission plan during 2025-2027.

These projects aim to improve the overall reliability of the electricity system and integrate planned large-scale renewable energy developments into the national grid.

The financing will support the construction of six new grid substations, 87 km of 132 kV transmission lines, 45 km of 220 kV transmission lines and capacity upgrades for two existing grid substations.

The CEB, together with its subsidiary, Lanka Electricity Company (LECO), distributes electricity to over 7.5 million customers through a transmission network comprising 3,400 km of high-voltage lines and 90 grid substations.