Sri Lanka has secured international financing for a new Rooftop Solar Integration and Virtual Net Metering Project aimed at expanding access to clean energy and strengthening the electricity distribution network.
The financing package comprises a US$35 million concessional loan from the Asian Development Bank, a €15.4 million European Union grant, equivalent to approximately US$16.94 million, and a US$5.5 million grant from the Japan Fund for the Joint Crediting Mechanism.
The Ministry of Energy, Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited are to implement the project between 2026 and 2030.
The Government says the project will support greater integration of rooftop solar generation and virtual net metering into Sri Lanka's electricity system.
Solar installations under the project are to include advanced control capabilities enabling the National System Operator to manage generation according to network constraints.
Within LECO's service area, low-loss conductors are also to be installed alongside the virtual-net-metering scheme to improve distribution-network efficiency.
High-capacity battery energy-storage systems at distribution-transformer level are intended to increase the network's ability to accommodate renewable energy and improve control over renewable generation.
The Government says particular attention will be given to the Negombo area, where LECO expects the project to increase network capacity for higher-capacity commercial and industrial loads while improving flexibility, resilience and reliability.
The relevant loan and grant agreements were signed at the General Treasury in Colombo on October 1.
Finance Ministry Secretary Dr. Harshana Suriyapperuma signed on behalf of the Government, while ADB Country Director for Sri Lanka Shannon Cowlin signed on behalf of the Asian Development Bank.
Representatives of the European Union and Japan were also present.
This is secured financing for a project scheduled for implementation from 2026 to 2030.
It should not be reported as though all rooftop-solar installations, batteries or virtual-net-metering facilities financed through the project are already operational.
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