Sri Lanka secures US $ 35mn ADB loan for rooftop solar project

The Cabinet of Ministers has approved entering into loan and grant agreements to obtain a total of US $ 35 million from the Asian Development Bank (ADB) and additional grants from the European Union and Japanese Fund for the Joint Credit Mechanism, to implement the Grid-Based Rooftop Solar Power and Virtual Net Meter Reading project.

The project has been identified as a priority initiative aimed at promoting the effective utilisation and distribution of solar energy among the independent power producers while supporting the expansion of small and medium-scale renewable energy projects.

The Cabinet approval was granted on November 3, 2025, to conduct negotiations with the ADB and other relevant parties regarding project financing. Following these discussions, the negotiations with the ADB, European Union and Japanese Fund for the Joint Credit Mechanism for obtaining loans and grants have been successfully concluded.

Accordingly, the Cabinet approved a proposal submitted by the President, in his capacity as the Finance, Planning and Economic Development Minister, to enter into the relevant agreements.

Under the approved financing arrangement, Sri Lanka will receive a US $ 35 million concessional loan from the ADB’s General Capital Resources, a EUR 15.4 million grant from the European Union and a US $ 5.5 million grant from the Japanese Fund for the Joint Credit Mechanism.

The project is expected to strengthen Sri Lanka’s renewable energy sector by facilitating greater adoption of rooftop solar power and improving mechanisms for managing the solar energy generated by the small-scale producers.