Sri Lanka’s Cabinet Approves Rooftop Solar Financing for Solar Project
Sri Lanka’s Cabinet approved financing agreements for an $80.5 million rooftop solar project on July 15, 2026. The project aims to expand rooftop solar generation, introduce virtual net metering, and modernize electricity distribution networks.
The financing package includes a $35 million concessional loan from the Asian Development Bank (ADB), a €15.4 million grant from the European Union, and a $5.5 million grant from the Japan Fund for the Joint Crediting Mechanism. Implementing agencies will contribute additional counterpart funding to cover the balance of the project.
The proposed project is expected to support approximately 25 megawatt-peak (MWp) of rooftop solar capacity. The model will establish a utility-led structure where state-owned utilities Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited pool electricity from larger rooftop systems. Credits will then be allocated to eligible consumers through virtual net metering.
The approval followed a proposal by President Anura Kumara Dissanayake, who also serves as the Minister of Finance, Planning and Economic Development.
Sources for Rooftop Solar Financing Information
- Sri Lanka clears 80.5 mln-USD rooftop solar project
- Sri Lanka clears financing agreements for $35 m ADB-backed rooftop solar project
- Daily FT: Sri Lanka’s only national business newspaper
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