Press Releases
USD 30 Million Financial Assistance from the International Development Association of the World Bank for the Secure, Affordable, and Sustainable Energy for Sri Lanka Project
The Government of Sri Lanka has arranged a loan of USD 30 million from the International Development Association (IDA) of the World Bank Group to finance the implementation of the Secure, Affordable, and Sustainable Energy for Sri Lanka Project. The Financing Agreement for this operation was signed on December 03, 2025, by Dr. Harshana Suriyapperuma, Secretary to the Treasury, and Mr. David N. Sislen, Division Director for Maldives, Nepal, and Sri Lanka of the World Bank Group, on behalf of the Government of Sri Lanka and the IDA, respectively.
The grid capacity have been hindered the utilization renewable energy presenting significant technical challenges, therefore, the proposed project has been formulated to enhance the infrastructure facilities to facilitate the grid integration of renewably energy in alignment with the Government’s power sector policy, aimed at generating 70 percent of the country’s electricity from renewable sources by 2030.This investment will be further complemented by the proposed payment Guarantee facility by the World Bank group to sale up the private sector investment for Renewable Energy Transformation though number of lending instrument by the World Bank Group. Therefore, the Secure, Affordable, and Sustainable Energy for Sri Lanka Project will advance key objectives such as scaling up renewable energy adoption, strengthening grid infrastructure to ensure secure and affordable power supply, mobilizing private sector participation, and enhancing institutional capacity to sustain long-term sector reforms.
The total project cost is USD 60 million, out of which USD 30 million will be provided by World Bank as the first phase of the project and balance 30 million is expected obtained by the World Bank as second phase.
The project will be implemented by the Ceylon Electricity Board, in coordination with relevant agencies such as the Ministry of Energy. It is expected to on lend the loan facility to Ceylon Electricity Board.
This press release is issued by the Department of External Resources on December 08, 2025.
USD 100 million Loan Assistance and USD 3 million Grant assistance from the Asian Development Bank
The Government of Sri Lanka had discussions with the Asian Development Bank (ADB) to mobilize a policy-based loan amounting to USD 100 million to implement the Power Sector Reforms and Financial Sustainability Program (Subprogram 2). This policy-based lending program will support the establishment of independent and financially sustainable electricity utilities. It will also support the streamlined and accelerated development of renewable energy sources for electricity generation under the reform areas.
The Ministry of Energy, in collaboration with the Ceylon Electricity Board, Sri Lanka Sustainable Energy Authority, Lanka Electricity Company Pvt. Ltd., and the Public Utilities Commission of Sri Lanka has successfully achieved all pre-policy actions related to Subprogram 2. Accordingly, the relevant loan proceeds of USD 100 million will be disbursed to the Treasury once the loan agreement is declared effective.
Further, the Government had discussions with ADB to secure a USD 3 million grant for the Cyclone Ditwah Emergency Response Project, as Sri Lanka has been experiencing a severe disaster situation caused by Cyclone Ditwah, resulting in widespread floods, landslides, and other cyclone-related impacts across the country.
The above USD 3 million grant assistance comes under the Asia Pacific Disaster Response Fund of ADB and will be obtained for post-disaster relief and rehabilitation work due to the impacts of Cyclone Ditwah. Accordingly, this grant-funded project will support the provision of essential life-preserving services for communities affected by the cyclone. Grant proceeds will be used for activities including, but not limited to, emergency rescue equipment, medical supplies and kits, food supplies, water and sanitation systems, transitional shelter materials, hygiene kits, debris-clearance equipment, aviation fuel, and communication equipment.
Accordingly, the above-mentioned loan and grant agreements were signed at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Mrs. Cholpon Mambetova, Country Operations Head, ADB Sri Lanka Resident Mission, on behalf of the Asian Development Bank on 05 December 2025.
Ministry of Finance, Planning and Economic Development
05 December 2025
Financial Assistance from the Asian Development Bank for the Strengthening Integrated Health Care and Governance for Universal Health Coverage Program
The Government of Sri Lanka had discussions with the Asian Development Bank to mobilize a loan amounting to USD 100 million coupled with an externally financed grant amounting to USD 6.9 million from the Pandemic Prevention, Preparedness and Response Trust Fund (Pandemic Fund) for the Implementation of the Strengthening Integrated Health Care and Governance for Universal Health Coverage Program under the Result-based Lending modality.
The above loan of USD 100 million under the Regular Ordinary Capital Resources of ADB will be obtained to support national strategic framework for the development of health services for improved efficiency and quality of secondary health services as first referral care for ensuring universal health coverage. Further, this program comprises of three outputs which will mainly focus on (i) enhancing first referral care services, (ii) enhancing pandemic prevention, preparedness, and response and (iii) improving health sector technical capacity and pharmaceutical supply chain management.
The Ministry of Health and Mass Media will mainly be the Executing and Implementing Agency while the nine Provincial Departments of Health Services will also act as Implementing Agencies of the above program.
The Loan and the Grant Agreements were signed on 17 October 2025 between the Government of Sri Lanka and the Asian Development Bank at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka and Mr. Takafumi Kadono, Country Director, ADB Sri Lanka Residence Mission, on behalf of the Asian Development Bank.
Ministry of Finance, Planning and Economic Development
17 October 2025
Entering into an Agreement on Debt Restructuring between Government of Denmark and the Government of Sri Lanka in relation to the External Debt Restructuring Process
Entering into the bilateral Agreement with the Government of Denmark in relation to the External Debt Restructuring Process marks a significant milestone and reflects the Government of Sri Lanka’s continued commitment to conclude the debt restructuring process successfully in order to restore debt sustainability and thereby revamp Sri Lanka’s economy.
Following bilateral discussions after the conclusion of the MoU with the Official Creditor Committee (OCC), the Government of Denmark has agreed to extend a debt relief measure by rescheduling the outstanding debts.
The Bilateral Agreement was signed by Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning and Economic Development, on behalf of the GoSL, and Mr. Lars Løkke Rasmussen, Minister for Foreign Affairs, on behalf of the Government of Denmark.
The estimated rescheduled debt under this agreement amounts to USD 39 million.
Entering into the Agreement will certainly pave the way to developing further the deep and longstanding bilateral relationships between the Government of Denmark and the Government of Sri Lanka. The Government of Sri Lanka extends its sincere appreciation to the Government of Denmark for its continued support and cooperation.
Ministry of Finance, Planning and Economic Development
Colombo 01
On November 18, 2025
Japan Grants Rs. 687 Million for Sri Lankan Officials' Postgraduate Education under JDS Programme
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On 24th July, the Governments of Sri Lanka and Japan reaffirmed their commitment to strengthening bilateral relations by signing agreements to continue the Japanese Grant Aid for Human Resources Development Scholarship (JDS) Programme, which supports the professional development of young executive-level officials in Sri Lanka’s public service."
Under the initiative, the Government of Japan has allocated JPY 332 million (approximately Rs. 687 million) for this year’s programme. The JDS Programme, funded through Japan’s Official Development Assistance and implemented by the Japan International Cooperation Agency (JICA), offers scholarships for postgraduate studies in Japan. Since its inception in 2010, the programme has awarded 240 Master’s and 16 PhD scholarships to Sri Lankan executive-level officials.
Currently in its Fourth Framework (2022–2025), the JDS Programme is expected to contribute to Sri Lanka’s socio-economic development and strengthen bilateral ties between the two nations. The Government of Sri Lanka views this initiative as a key investment in public sector capacity-building and a cornerstone of the long-standing partnership with Japan.
The Exchange of Notes between the Governments of Sri Lanka and Japan, along with a Grant Agreement between the Government of Sri Lanka and JICA, was signed on 24th July 2025 at the Ministry of Finance, Planning and Economic Development. The documents were signed by Dr. Harshana Suriyapperuma, Secretary to the Treasury and the Ministry of Finance, on behalf of the Government of Sri Lanka, and His Excellency Mr. ISOMATA Akio, Ambassador of Japan to Sri Lanka, on behalf of the Government of Japan; and Mr. KURONUMA Kenji, Chief Representative of JICA, on behalf of JICA.