Sri Lanka receives French assistance for Green Energy

The French government has agreed to provide Financial Assistance from the French Agency for the Implementation of Green Power Development and Energy Efficiency Improvement Investment Programme of Sri Lanka.

The total cost of this programme US$ 260 million (approximately Rs. 44 billion) will be borne by the French Agency for the Implementation of Green Power Development and Energy Efficiency Improvement Programme.

The sufficient energy supply and energy security are critically important in economic growth and prosperity. The energy sector is strongly correlated with all other sectors of the economy including production, commercial and services. Therefore, energy planning has to always be made in a sustainable manner, within the framework of current and future energy demand against available energy resources.

While ensuring a continuous supply of electricity, managing a strategic balance between indigenous energy resources and imported fossil fuels and coal is a major challenge faced by the Sri Lanka’s power sector. Ceylon Electricity Board has an ambitious capital investment plan for next 10 years to maintain 100% electrification while improving supply quality and reliability.

Total cost of this project is estimated at US$ 260 million. Asian Development Bank has already provided USD 150 million loan to finance a part of the project. French Agency for Development (AFD) will provide Euro 30 million loan to finance a part of the total project cost and the balance will be borne by the Ceylon Electricity Board (CEB).

Secretary of the Ministry of Finance and Mass Media Dr. R H S Samaratunga on behalf of the Government and Country Director of AFD Sri Lanka Resident Mission Martin Parent, signed a Credit Facility Agreement relevant to this above loan on Wednesday at the Ministry of Finance and Mass Media.

Total cost of this programme US$ 260 million (around Rs. 44 billion) will be borne by the French Agency