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ADB extends loan of USD 200mn to upgrade Sri Lanka’s power sector

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The Asian Development Bank (ADB) has approved a 200 million U.S dollar loan to upgrade Sri Lanka’s power infrastructure, improve transmission and distribution reliability, and integrate more renewable energy into the grid, according to a press release issued by ADB on Monday.

ADB Country Director for Sri Lanka Takafumi Kadono emphasized the importance of driving power sector reforms and modernizing infrastructure to support renewable energy development and reduce power generation costs.

Of the total funding, 150 million dollars will go to the Ceylon Electricity Board (CEB), while 50 million dollars is earmarked for Lanka Electricity Company (LECO), Sri Lanka’s two on-grid electricity providers, the ADB said.

The project aims to expand and digitalize infrastructure, reduce power outages, and minimize transmission losses while supporting Sri Lanka’s goal of incorporating more renewable energy into its electricity mix, the ADB said.

Despite achieving 100% household electrification in 2016, Sri Lanka faces challenges in transitioning to sustainable energy.

In 2023, 50% of electricity generation came from thermal power plants, even as installed capacity reached 5,191 megawatts (MW) and peak demand hit 2,800 MW, according to ADB data.

The ADB project will expand high-voltage transmission lines, modernize medium-voltage networks, and introduce advanced grid protection systems.

It will also establish Sri Lanka’s first grid-scale battery energy storage system, create a renewable energy monitoring center, and implement automated systems with real-time data capabilities to enhance power delivery and climate resilience, the ADB said.

Given below is the ADB press release in full: “The Asian Development Bank (ADB) has approved a $200 million loan to upgrade Sri Lanka’s power sector infrastructure, enhancing the reliability of transmission and distribution networks and facilitating greater integration of renewable energy.

“Driving power sector reforms, combined with targeted infrastructure interventions, is essential to facilitate competitive renewable energy development and reduce power generation costs,” said ADB Country Director for Sri Lanka Takafumi Kadono. “By expanding and modernizing infrastructure and incorporating digitalization solutions, this project will support the government’s goal of increased integration of renewable energy in the electricity mix, reduce power interruptions, and minimize transmission and distribution losses.

“Sri Lanka achieved 100% household electrification in 2016. Peak demand reached around 2,800 megawatts (MW) in 2023, including contributions from distributed renewable energy, and is projected to grow significantly by 2030. While Sri Lanka’s total installed power generation capacity reached 5,191 MW in 2023, about 50% of the country’s electricity generation in 2023 came from thermal power plants, underscoring the challenges in transitioning to a more sustainable energy mix. In its updated nationally determined contribution, the government has set an ambitious target of 70% electricity generation from renewables by 2030 and carbon neutrality in electricity generation by 2050.

“The Power System Strengthening and Renewable Energy Integration Project will enhance climate resilience and expand the capacity of transmission and distribution networks, enabling greater integration of renewable energy. The project will expand the 220-kilovolt and 132-kilovolt transmission infrastructure with new transmission lines and substations, modernize the medium voltage distribution network, and upgrade grid protection systems. The project will introduce Sri Lanka’s first grid-scale battery energy storage system at the transmission level, establish a renewable energy center to forecast and monitor renewable energy generation, and implement network automation systems with SCADA and remote terminal units, providing operators with real-time data and alerts to ensure efficient power delivery.

“The approval of this project reflects the significant progress made by Sri Lanka in advancing power sector reforms, which aims to enhance financial sustainability, ensure cost recovery tariff revisions, and competitive renewable energy development. ADB’s support for infrastructure upgrades is contingent on these reforms, recognizing their critical role in renewable energy integration and improving the sector’s overall performance.

“The project will strengthen the institutional capacities of Ceylon Electricity Board (CEB) and Lanka Electric Company (LECO)—the only utilities in the country responsible for power delivery to end-consumers. The project will improve their ability to integrate and manage renewable energy systems, adopt digital solutions, and enhance hosting capacity of rooftop solar installations.

“Various career development activities for CEB and LECO female staff, awareness-raising programmes on safe and productive use of electricity, training on adopting clean energy solutions for women-led groups and businesses will be implemented.

Of the total amount, $150 million will be provided to CEB and $50 million will go to LECO. Both financing will be guaranteed by the Democratic Socialist Republic of Sri Lanka.”



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CoPF Chief steps up pressure on Prez to appoint AG

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President Dissanayake / Dr. de Silva

House Committee, BASL and TISL take common stand

The Chairman of the Committee on Public Finance (CoPF) has found fault with President Anura Kumara Dissanayake for what it calls the inordinate delay in appointing a new Auditor General. CoPF Chairman Dr. Harsha de Silva, in a letter dated Dec. 22 addressed to President Dissanayake, has pointed out that the Office of the AG remains vacant.

The SJBer raised the serious issue with the President close on the heels of the interventions made by the Bar Association of Sri Lanka (BASL) and Transparency International Sri Lanka (TISL).

Dr. de Silva has emphasised that the failure on the part of the President to fill the vacancy is a matter of serious concern. The Constitutional Council has repeatedly rejected the President’s nominee while questioning his suitability.

The following is the text of CoPF Chairman’s letter to the President: ” I wish to respectfully bring to your attention that the Office of the Auditor General has remained vacant since 7 December, following the conclusion of the tenure of the Acting Auditor General on 6 December. At present, there is neither a substantive nor an acting Auditor General in the country, and consequently, the Audit Service Commission remains without a chairman. Given the prevailing circumstances of the country, the continuous absence of this constitutionally mandated post is a matter of serious concern.

Under Article 148 of the Constitution, Parliament exercises full control over public finance. The effective exercise of this control is constitutionally dependent on the continuous functioning of an independent audit mechanism.

Article 154 of the Constitution establishes the office of the Auditor General and mandates the audit of all State institutions and the reporting of such audits to Parliament. The absence of an Auditor General disrupts this mandatory constitutional process. This mandate is further reinforced by Section 3 of tile National Audit Act, No. 19 of 2018.

Moreover, the oversight functions of the Committee on Public Accounts, and the Committee on Public Enterprises in terms of Standing Orders 119, and 120 are directly dependent on audit reports issued by the Auditor General. The continued vacancy therefore materially undermines parliamentary financial oversight.

As the Committee on Public Finance (CoPF) is responsible for reviewing the budget and work programme of the National Audit Office, I consider it my duty, as the Chair of the CoPF, to urge the immediate appointment of the Auditor General.

Accordingly, I respectfully request that urgent action be taken to appoint a suitable, qualified and experienced individual as the Auditor General in accordance with Article 153(1) of the Constitutional, without further delay.”

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Indian HC and Consulates extend humanitarian assistance to families affected by Cyclone Ditwah

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HC Jha handing over relief

As part of India’s continued assistance to Sri Lanka under ‘Operation Sagar Bandhu’, the Indian High Commission in Colombo, Assistant High Commission in Kandy and Consulate General of India in Jaffna conducted humanitarian assistance distribution drives for families affected by Cyclone Ditwah in different parts of the country, the Indian HC said.

The text of the HC statement: “On 18 December, High Commissioner of India Santosh Jha distributed relief kits among affected families in the Kolonnawa in coordination with All Ceylon Sufi Spiritual Association and among children of Bhaktivedanta Children’s Home ‘Gokulam’ at ISKCON Temple in Colombo. Earlier this month, the High Commissioner also distributed assistance among residents of Nayanalokagama, village specially designated for the visually impaired, and among affected families in Negombo in the Gampaha District.

Between 9 and 19 December, Assistant High Commission of India in Kandy distributed essential food items and supplies among hundreds of affected families in Kandy, Nuwara Eliya and Badulla Districts.

Similarly, the Consulate General of India in Jaffna carried out several distribution drives for affected families in Mannar, Mullaitivu and Kilinochchi, as well as island territories of the Jaffna District.

This assistance is over and above several tonnes of food and relief material handed over by India to the Government of Sri Lanka under ‘Operation Sagar Bandhu’.”

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Sri Lanka prepares to deploy fresh military contingent under UN command

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Latest SLAF contingent for overseas deployment under UN command(pic courtesy SLAF)

The passing-out parade of the No. 11 Contingent of the Aviation Unit assigned to the United Nations Multidimensional Integrated Stabilization Mission in the Central African Republic (MINUSCA) took place on 23 December 2025 at the SLAF Base Katunayake. The Commander of the Air Force, Air Marshal Bandu Edirisinghe, took the salute as the parade was led by Group Captain Asiri Pathirage, the Contingent Commander of the 11th contingent.

The heli-deployment, comprising 22 officers (including two female officers) and 88 airmen (including five airwomen), is scheduled to depart for the Central African Republic in the middle of January.

During the address to the parade, the Commander noted that the United Nations Headquarters has praised the Sri Lanka Air Force contingents stationed in the Central African Republic for their bravery, professionalism and dedication to duty. He emphasized that this accomplishment reflects the trust and confidence placed in the military forces of Sri Lanka by the international community, enhancing the nation’s standing on the global stage. This mission is also anticipated to bring significant economic benefits to the country.

The parade was attended by the Chief of Staff, Deputy Chief of Staff, members of the Air Force Board of Management, officers and airmen of SLAF Base Katunayake and most specifically, the beloved family members of the Aviation Contingent.

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