Colombo, June 21 – The World Bank Group has approved a new $150 million program to help Sri Lanka advance its shift toward clean, affordable, and reliable energy, reducing its dependency on costly fossil fuel imports.

The initiative, titled “Secure, Affordable, and Sustainable Energy for Sri Lanka”, will support new solar and wind power projects capable of adding 1 gigawatt of renewable energy to the national grid—marking a significant step toward Sri Lanka’s target of generating 70% of its electricity from renewable sources by 2030.

“This program will help deliver clean, affordable electricity to families and businesses across Sri Lanka,” said David Sislen, World Bank Division Director for the Maldives, Nepal, and Sri Lanka.

In addition to direct funding, the program includes $40 million in guarantees to reduce financial risks for private investors, especially in relation to payment obligations by the Ceylon Electricity Board (CEB). These guarantees are expected to improve investor confidence and facilitate more favorable financing terms.

The program is also projected to mobilize over $800 million in private investment, helping to lower electricity costs and improve reliability for consumers.

The World Bank’s private sector arms—the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA)—will play a key role. IFC will provide direct investments, while MIGA will offer political risk insurance to attract international investors.

“Sri Lanka’s energy transition is an opportunity to expand clean energy, improve access, and build long-term resilience,” said Imad N. Fakhoury, IFC’s Regional Director for South Asia.

The initiative will also support upgrades to Sri Lanka’s power grid, enabling it to better accommodate renewable energy and reduce power outages. Additionally, it includes technical assistance for the CEB and support for government-led reforms to enhance utility management and regulatory transparency.

“Our guarantees will help de-risk projects and attract the private capital needed to scale up clean energy in Sri Lanka,” said Muhamet Fall, Director of Operations at MIGA.

By combining financial assistance, technical expertise, and private sector collaboration, the World Bank Group aims to help fuel Sri Lanka’s long-term economic growth while making the energy sector more sustainable, competitive, and inclusive.