Sampath Bank finances 1st ever commercial scale solar power project in Sri Lanka

Assuring its continuous commitment towards the development of renewable energy resources in the country, Sampath Bank financed the first ever commercial scale solar power project in Sri Lanka. 

The project owned by the LAUGFS Group is expected to be executed as two power generation plants of 10MW each. The ground breaking ceremony of the project took place on 18 February with the patronage of the promoters – LAUGFS group, officials of the bank, other stake holders and well-wishers.

One project carried out under the name of Iris Eco Power Lanka Ltd. (as an entity of the LAUGFS group) is expected to contribute 10MW to the national grid on completion and is funded by Sampath Bank. 

Both projects approved by the BOI aggregate to an estimated cost of Rs. 5 billion for completion. The projects are commissioned in Hambantota, which is identified as one of the highest resource areas for solar power generation according to a solar assessment survey carried out by USAID in Sri Lanka.

Since its inception, Sampath Bank has been focused on contributing towards the development of sustainable energy generation in the country. This has been a priority area for the bank as the country still generates a major portion of electricity through fossil energy which continues to be a major burden on the trade deficit, whilst there is still a segment of our population who have no access to electricity.

The bank boasts of financing over 45 projects so far in the renewable energy sector of which the majority are mini hydro power projects while twoare on biomass and wind power, reflecting nearly 3% of its loan book towards the renewable energy generation sector.

This landmark project will be the first ever commercial scale solar power venture in Sri Lanka, as presently only a few solar power plants are operated as pilot projects whilst the balance are individual solar generation for houses and offices. The project will not only contribute towards the national power supply but will indirectly contribute towards employment generation in the district. Apart from commercial level contribution towards the renewable energy sector, the bank also offers financial solutions for household level renewable energy generation as well. The other 10MW project is to be funded by DFCC Bank.