Sri Lanka gets Rs. 27 b Japanese funding to boost electricity

The Government will get a Rs. 27 billion concessional loan from the Japanese government through the Japan International Cooperation Agency, JICA to develop its national power transmission and distribution network, a statement said.

Finance Ministry said as a result of bilateral discussions with the Government of Japan, the Government of Japan agreed to provide a concessional loan amounting to Japanese Yen 24,930 million (approximately Rs. 26,873million) through Japan International Cooperation Agency (JICA) for the implementation of National Transmission and Distribution Network Development and Efficiency Improvement Project.

This project is expected to enhance capacity of national transmission and distribution network located in Greater Colombo area and its surroundings and to reduce transmission and distribution losses by constructing and upgrading transmission lines, substations and distribution lines thereby contributing to the improvement of energy reliability and energy efficiency in the country.

Finance Ministry said the demand for the electricity in Sri Lanka has grown at an average rate of 5-7%annually during the last decade and this growth is further continuing with the economic development of the country. Further, it is estimated that the overall annual demand for electricity will increase by around 4-6%.

Therefore, it is required to increase the electricity generation, as well as to strengthen electricity transmission and distribution network while mitigating the system losses in order to obtain quality and uninterrupted electricity supply for all the people in the country.

The signing of Loan Agreement pertaining to the 45th Yen loan package took place yesterday, at the Ministry of Finance. The loan agreement was signed by Dr. R.H.S. Samaratunga, Secretary, Ministry of Finance and Kiyoshi Amada, Chief Representative of JICA Sri Lanka Office on behalf of the Government of Sri Lanka and JICA respectively.