ADB Extends $102.5m Support as Cyclone Damages Power Grid
- CNL Reporter
- December 4, 2025
- News, Political
- ADB
- 0 Comments
The Asian Development Bank has approved a US$100 million policy loan and a US$2.5 million technical assistance grant to support urgent reforms in Sri Lanka’s power sector, coinciding with widespread cyclone damage to the country’s electricity network.
The funding forms part of ADB’s ongoing Power Sector Reforms and Financial Sustainability Program, which includes unbundling the Ceylon Electricity Board into separate companies for generation, transmission, system operations, and distribution.
ADB says the initiative will accelerate renewable energy development, introduce competitive procurement for large-scale projects, and strengthen financial sustainability, including cost-reflective tariffs and debt restructuring.
The cyclone has severely disrupted electricity supply, affecting industries, households, and economic activity, making the reforms more urgent. The technical assistance grant will help build the capacity of new successor companies and support social measures such as lifeline tariffs to protect vulnerable groups.
