India has extended a USD 100 million Line of Credit (LOC) to Sri Lanka for various solar energy projects. This financial help will aid the Lankan government to boost their solar energy sector by ensuring the country’s 70 percent power requirements are fulfilled by renewable energy sources by 2030.
The agreement was signed between the Sri Lankan government and the Export-Import Bank of India and exchanged by the High Commissioner of India to Sri Lanka Gopal Baglay and Secretary to the Treasury S R Attygalle in the presence of Sri Lankan President Gotabaya Rajapaksa on Wednesday.
This USD 100 million LOC will help finance various projects in the solar energy sector in Sri Lanka, including those announced during the Founding Conference of the International Solar Alliance (ISA) held in March 2018, such as rooftop solar photo-voltaic systems for households and government buildings, the High Commission said in a statement. President Rajapaksa and the High Commissioner of India discussed the striking similarity in the national objectives outlined by India and Sri Lanka in connection with solar energy.
In an attempt to cut down on emissions, Sri Lanka hopes to invest in a grand way in the solar energy sectors. The money will be used to construct rooftop solar systems for 20,000 households and 1,000 government buildings all across the island. It is estimated that the generation capacity of these solar roofs will be about 60MW, according to an official statement.
Apart from the large-scale use of solar panels, Sri Lanka will also build a floating solar power station.
India becomes the first country to partner with Sri Lanka in fulfilling the vision of the President of Sri Lanka to ensure that 70 per cent of Sri Lanka’s national power requirements are fulfilled by renewable energy sources by 2030, as reiterated during his address at the recently concluded Sri Lanka Investment Forum,” the statement said.