Sri Lanka gets US $ 100mn Indian credit line for solar power generation

Sri Lanka inked a loan agreement amounting to US $ 100 million with India yesterday, to increase the proportion of renewable energy source to the 
national grid.

In an effort to fulfil the agenda listed in the National Policy Framework, which is to increase the contribution of renewable energy sources to the national power grid by enhancing solar power generation, Sri Lanka has entered into a bilateral loan agreement with India.

India will grant a line of credit via the Exim Import Bank of India. A key plan of the Sri Lankan government is to generate solar power by obtaining the contribution of state-owned buildings, places of worship and houses of the low-income families. 

The promotion of the solar power project is expected to provide financial benefit to low-income households. According to the government, the project will help curtail the expenses incurred by the state institutions for electricity.

A statement put forward by the President’s Media Division shared that steps would also be taken to provide facilities to store solar energy in batteries for the low-income families that are unable to access the national power grid. The project will include generating power by installing floating solar panels as a solution to land scarcity.
The first phase will see electricity generated for Parliament, centring the Diyawanna Lake, as a model project.