MONETABRIEF – Manila-based Asian Development Bank said it had approved 57.4 million dollars of financing for Sri Lanka to set up large solar farms that will give virtually give credits to small users, as if they had the panel on their own roofs.
The ADB itself will give a 35 million dollar concessional loan, 16.9 million dollars will come the European Union and 5.5 million form the Japan Fund for Joint Crediting Mechanism.
Counterpart funding from implementing will take the total to 80.5 million dollars.
"This project will help Sri Lanka widen access to affordable renewable energy while strengthening grid readiness for a more resilient and inclusive power sector," ADB Country Director for Sri Lanka Shannon Cowlin said in a statement.
"It will support small businesses, advance grid modernization and digitalization, and create new opportunities for women and young people in the clean energy industry."
About 25 megawatt-peak of rooftop solar installations is planned under the project.
Under the Rooftop Solar Aggregation and Virtual Net Metering Project, state-urn Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited will set up utility-led large rooftop solar systems and virtually distributes credits to eligible consumers.
This allows multiple users to share the benefits of solar energy without installing panels on their homes, the ADB said.
It will also allow small users who do not have a roof to install panel to get access to net metering.
The project will help eligible micro, small, and medium enterprises, as well as community organizations—including those unable to install rooftop solar because of financial or space constraints—to reduce electricity costs through allocations under a social compensation mechanism.
The project will also support a new aggregation and virtual net metering model, modernize and digitalize the distribution networks of the two utilities, and help build a grid ready for more distributed renewable energy.
A training facility to support green skills development will be set up, women’s participation in the sector strengthened, and more capacity built on advanced low-carbon technologies. (Colombo/June27/2026)