Sri Lanka signs USD 100 mn LoC with India for solar energy projects

India became the first country to partner with Sri Lanka in fulfilling the vision of President Gotabaya Rajapaksa, to ensure that 70% of Sri Lanka’s national power requirements are fulfilled by renewable energy sources by 2030, as reiterated during his address at the recently concluded Sri Lanka Investment Forum.

In this context, an agreement extending a USD 100 million Line of Credit (LOC) to Sri Lanka for projects in the Solar Energy Sector, signed between the Government of Sri Lanka and the Export-Import Bank of India, was exchanged by the High Commissioner of India to Sri Lanka Gopal Baglay and Secretary to the Treasury S.R. Attygalle, in the presence of President Gotabaya Rajapaksa, today (June 16).

This USD 100 million LOC will help finance various projects in the solar energy sector in Sri Lanka, including those announced during the Founding Conference of the International Solar Alliance (ISA) held in March 2018, such as rooftop solar photovoltaic systems for households and government buildings.

A total of 89 countries, including Sri Lanka, have signed the Framework Agreement of the ISA, which was jointly launched by the Prime Minister of India and the President of France, to bring together countries to promote the large-scale deployment of solar energy and overcome challenges related to technology, finance, and capacity.

President Gotabaya Rajapaksa and the High Commissioner of India discussed the striking similarity in the national objectives outlined by India and Sri Lanka in connection with solar energy. 

Over the past 7 years, solar power generation in India has increased significantly to reach 34.6 GW in 2021 from about 2.6GW in March 2014. The National Solar Mission of India aims to increase it further to 100 GW and beyond, the High Commission of India in Sri Lanka stated, issuing a press release.

The shared vision of the two countries in the renewable energy sector reflects their common national priorities and convergence of approaches for sustainable development, the High Commission stated.

Strengthening collaboration in this vital sector will help enhance the two countries’ overall energy partnership and contribute towards the global efforts to tackle climate change and reduce emissions, the press release further read.