Wednesday, August 26 2026
Wednesday, August 26 2026
MONETABRIEF – Sri Lanka has decided to use 2. 5million US dollars from an Asian Development Bank loan to develop detailed plans and procurement documents for a pumped storage plant to handle intermittent renewable energy.
The cabinet had decided to use the money from a 15 million facility for renewable energy.
A pumped storage plant has reservoirs in a cascade, close together. When renewable power is plentiful and demand is low - such as solar power in daytime – water is pumped to the upper reservoir.
In the night, hydro electricity is generated and water is released to the lower elevation one.
Sri Lanka's cabinet in March 2026, gave the go ahead to see funds for the project which was estimated at 243 billion rupees.
Macro-economists had busted the rupee since, with rate cuts and money printed through swaps. Rates have since been corrected by the rupee has fallen from 300 to 330 to the US dollar.
It is not clear what the revised rupee cost of the plant is. (Colombo/Aug26/2026)
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