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USD 57.4m power investment opens new route for SME energy savings

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A rooftop solar panel in Sri Lanka

By Ifham Nizam

A USD 57.4 million investment package is set to reshape the economics of electricity for small and medium-sized businesses, while creating a stronger platform for private investment in rooftop solar and other distributed renewable-energy projects.

The financing package—comprising a USD 35 million concessional loan from the Asian Development Bank (ADB), a EUR 15.4 million grant from the European Union (EU), equivalent to USD 16.94 million, and a USD 5.5 million grant from the Japan Fund for the Joint Crediting Mechanism (JFJCM)—will finance a five-year programme to modernise the electricity distribution system from 2026 to 2030.

For the business community, one of the most significant elements is the planned introduction of Virtual Net Metering (VNM), which will be implemented in the country for the first time.

The EU-funded component will support 25 MW of aggregated rooftop solar PV capacity, specifically aimed at helping reduce the electricity-bill burden of small and medium-scale entrepreneurs.

The move could open a new investment channel for SMEs that have traditionally faced difficulties in absorbing high energy costs and making the upfront investment required for renewable-energy systems.

Rather than viewing rooftop solar simply as a household energy solution, the programme positions distributed solar as an important business-cost management tool.

For SMEs, which operate with considerably tighter margins than many large corporates, electricity expenditure can have a direct impact on competitiveness, cash flow and the ability to expand operations.

By allowing electricity generated from qualifying rooftop solar installations to be applied through a virtual net-metering arrangement, the programme is expected to broaden the economic benefits of solar power beyond individual premises.

The financial significance of the scheme extends beyond the initial 25 MW.

By establishing the infrastructure and regulatory framework required to manage aggregated distributed generation, the project could help create greater investor confidence in the development of decentralised renewable-energy assets.

The investment therefore has the potential to leverage additional private capital into the renewable-energy sector rather than functioning solely as a government-funded infrastructure programme.

The financing package is particularly notable because a substantial portion comes in the form of grants and concessional funding, reducing the cost of financing technologies that would otherwise require significant upfront capital.

The ADB loan will support the wider modernisation programme, while the EU and Japanese grant components will help finance renewable-energy integration and technologies designed to strengthen the grid.

At EDL, the investment will upgrade the existing CEBAssist platform with Advanced Metering Infrastructure (AMI), a Distributed Energy Resource Management (DERM) system and distribution control centres supported by an Advanced Distribution Management System (ADMS).

These systems will give the utility real-time visibility of electricity consumption and distributed generation, allowing it to manage an increasingly decentralised power system more efficiently.

That digital infrastructure is critical to the business case for expanding rooftop solar.

As more SMEs and other consumers generate their own electricity, the distribution network needs to know where generation is taking place, how much electricity is entering the grid and how those flows are affecting local network conditions.



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Renault Experience Centre opens at Majestic City

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Renault has taken another significant step in its return to the Sri Lankan market with the opening of the Renault Experience Centre at Majestic City, Colombo, offering customers an opportunity to discover the brand and experience its latest models.

The Centre was officially declared open by Jawahar Ganesh, Group Managing Director of Associated Motorways (Private) Limited, accompanied by Prasanna de Silva, Director – Sales, AMW. The occasion was attended by AMW management and staff, members of the media, customers, well-wishers and other invited guests.

Located at the lobby of Majestic City, the Centre features three Renault models being introduced to the Sri Lankan market – the Renault Kwid, Renault Kiger and Renault Triber. Visitors can explore the vehicles, learn about their features and specifications, and take advantage of test drives available at the location.

Adding to the convenience for customers, AMW has ample stocks of Renault vehicles available in Sri Lanka, allowing customers to take delivery of their chosen vehicle without having to wait for months for it to arrive. Subject to completion of the necessary documentation and registration, customers can look forward to driving away in their new Renault within as little as one day, making the purchase experience faster and more convenient.

Customers can also enjoy greater peace of mind with a three-year manufacturer warranty, supported by dedicated Renault aftersales facilities to provide professional service and support throughout their ownership journey.

Commenting on the opening, Jawahar Ganesh, Group Managing Director of AMW, said, “We are delighted to welcome Renault back to Sri Lanka and to open the Renault Experience Centre at Majestic City. Renault is a brand with an exceptional heritage, a strong global presence and a reputation for innovation and distinctive automotive design. Through AMW, we are bringing that heritage and experience closer to Sri Lankan customers”.

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Dialog and Indira Cancer Trust continue breast cancer awareness initiative through Yeheli.lk

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From left to right: Dr. Sanjeeva Gunasekera, President of the Sri Lanka College of Oncologists (SLCO), and Supun Weerasinghe, Director / Group Chief Executive of Dialog Axiata PLC, illuminate the Dialog Corporate Head Office in pink, joined by Dr. Lanka Jayasuriya Dissanayake, Chairperson of the Indira Cancer Trust, alongside representatives of the Indira Cancer Trust and the leadership of Dialog Axiata PLC, in support of Breast Cancer Awareness Month.

Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, marked the beginning of Breast Cancer Awareness Month by illuminating its Corporate Head Office in pink, in partnership with the Indira Cancer Trust, to stand in solidarity with individuals and families affected by breast cancer and encourage greater awareness, regular screening and early detection.

 Building on previous breast cancer awareness campaigns conducted through Dialog’s Yeheli.lk platform in collaboration with the Indira Cancer Trust, this year’s initiative will continue throughout October under the theme, ‘A Pledge from the Heart’. As part of the campaign, members of the public can visit yeheli.lk to register for a free monthly SMS reminder and take their pledge for early detection throughout Breast Cancer Awareness Month.

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‘Sri Lanka’s household consumption has recovered, but the consumer has changed’

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(From left to right): Anshuman Upadhyaya, Managing Director & Partner, BCG; Nishant Gupta, Managing Director & Senior Partner, BCG; Parul Bajaj, India Leader – Marketing, Sales & Pricing and Managing Director & Partner, BCG; and Devraj Bharati, Associate Director, BCG

Boston Consulting Group (BCG) released a report, “The Changing Path to Purchase in Sri Lanka,” in collaboration with The Ceylon Chamber of Commerce. It examines how Sri Lanka discovers, selects and transacts in a recovering economy. Six years on from BCG’s first study of the Sri Lankan consumer in 2020, the report set out to establish where that consumer now stands.

Sri Lanka has gone through a period of sustained economic pressure, and household consumption has recovered to a record level. The crisis, however, redrew where spending power sits and how families allocate what they have. It prompted shifts in consumer behaviour, some of which persist even after conditions have eased.

Key findings from the report

Rural Sri Lanka carries the middle-class scale, affluent households spend above their weight: Household consumption stands at a record level of around LKR 9 trillion in real terms and remains the largest component of GDP. The middle class is the largest consumption pool at about 70% of national spending, with rural Sri Lanka accounting for 56% of middle-class households. Affluent households are increasingly concentrated in the Urban-West and account for 4% of all households, while contributing 11% of national consumption.

Choices are more intentional and preference must be re-earned: More brands enter the consideration set than in 2020, yet fewer convert into a single preferred brand. Incumbent channels lag on some key choice drivers, giving newer channels a right to win.

Spending intent runs ahead of income: 77% of consumers expect to spend more over the next six months, while 38% expect their income to rise. Consumers expect to spend more on essentials, hold everyday categories and cut back or defer discretionary purchases in the shorter term.

Discovery remains human-led, while the shortlist digitises: Word of mouth is still the strongest source of influence at 66%, while digital influence has risen to 51% from 32% in 2020, running highest in considered purchases like leisure and high-value purchases. Within digital, YouTube and social media lead discovery.

Generative AI is emerging as the next discovery frontier: 55% of consumers are aware of it and 18% have already used it, with about one in three using it to research brands and products.

Digital banking sees deep engagement: 25% of consumers use digital banking, but they are highly engaged. Digital payments are their preferred choice for routine transactions.

“Consumption has recovered to a record level, but the household behind that number is not the one companies planned for before the crisis. Essentials take a larger share of the wallet, and families are making more deliberate choices, category by category,” said Nishant Gupta, Managing Director & Senior Partner, BCG.

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