Cabinet approves $ 200 m ADB loan for power sector

Wednesday, 11 December 2024 00:10 - - {{hitsCtrl.values.hits}}

Cabinet of Ministers at their meeting on Monday approved the signing of a security agreement with the Asian Development Bank (ADB) to secure a $ 200 million loan aimed at strengthening and modernising the country’s electricity transmission system.

The funding provided under the ADB’s initiative to enhance trust in the country’s electricity system, will be disbursed as two separate loans – $ 150 million to the Ceylon Electricity Board (CEB) and $ 50 million to Lanka Electricity Company (LECO).

Both loans will be issued with a Treasury guarantee to ensure secure repayment.

The proposal was initially approved during the Cabinet meeting held on 2 September 2024 by the previous regime.

The project seeks to address critical issues in electricity transmission network, focusing on modernisations and enhanced reliability.