Sri Lanka Cabinet clears ADB, EU, JFJCM funding for solar, net metering project

Tuesday July 14, 2026 2:33 pm ECONOMYNEXT – Sri Lanka’s cabinet has approved a proposal to obtain around 57 million dollars from the Asian Development Bank, the European Union and The Japanese Fund for the Joint Crediting Mechanism (JFJCM) for the Rooftop Solar Aggregation and V…

Tuesday July 14, 2026 2:33 pm

ECONOMYNEXT – Sri Lanka’s cabinet has approved a proposal to obtain around 57 million dollars from the Asian Development Bank, the European Union and The Japanese Fund for the Joint Crediting Mechanism (JFJCM) for the Rooftop Solar Aggregation and Virtual Net Metering Project, minister Nalinda Jayatissa said. The project was identified as a priority project with the aim of enhancing small and medium scale renewable energy projects by providing a solution for the effective use and distribution of solar energy to independent power producers, he told reporters. Cabinet approval was given in November last year to seek financing through a Memorandum of Understanding with the Asian Development Bank and other agencies. The negotiations for obtaining the relevant loans and grants from the ADB, EU and JFJCM have concluded. Based on the agreement reached in those negotiations and subject to the terms and conditions of the ADB loan, the Cabinet approved the proposal to enter into Loan and Grant Agreements with the ADB for a loan of 35 million dollars from its concessional general capital resources; a grant of 15.4 million euro from the EU and a grant of 5.5 million dollars from JFJCM, Jayatissa said. (Colombo/Jul14/2026)

Tuesday July 14, 2026 2:09 pm

ECONOMYNEXT – Sri Lanka’s cabinet has approved a proposal to award the tender to expand the Bandaranaike International Airport departures terminal to Maga Engineering (Pvt) Ltd for 7.26 million dollars (excluding VAT) and 3.77 billion rupees (excluding VAT). “This money will come out of the general treasury,” minister Nalinda Jayatissa told reporters. The Cabinet on February 9 last year approved the implementation of the procurement process for the construction of a new building with 36 check-in counters and 6 aircraft access gates from the passenger terminal. Bids were invited under the International Competitive Procurement Procedure to select a suitable contractor, Jayatissa said, and 3 bids were received. “After evaluating the bids, based on the recommendation submitted by the High-Level Standing Procurement Committee, Cabinet approved the proposal to award the contract to the lowest responsive bidder, M/s Maga Engineering (Pvt) Ltd.” (Colombo/Jul14/2026)

ADB has approved game-changing reforms to crisis response tools to help governments act quickly, protecting people, keeping essential services running, and strengthening energy and food security.

Tuesday July 14, 2026 1:30 pm

MANILA, PHILIPPINES (14 July 2026) — The Asian Development Bank (ADB) is putting faster and more flexible crisis response tools in place to help its members in Asia and the Pacific protect people, keep essential services running, and manage energy supply and food price shocks. “Ongoing instability from the Middle East conflict is putting pressure on governments and people across the region, raising fuel bills, food prices, borrowing costs,” said ADB President Masato Kanda. “ADB is moving quickly, before shocks become deeper crises. These tools will deliver support faster, give governments more room to act, and keep the focus where it belongs: protecting people, preserving stability, and building stronger energy and food systems.” ADB’s Board of Directors today approved Enhancing ADB’s Crisis Response Modalities to Address Energy Supply and Food Price Shocks, a policy paper that updates three existing ADB financing tools: the countercyclical support facility, contingent disaster financing, and emergency assistance loan. The changes are designed to help ADB respond to supply shocks that can build over time, spread through fuel and food markets, raise inflation, strain public budgets, and disrupt essential services. The countercyclical support facility will now more clearly cover energy supply and food price shocks. This means ADB can provide fast budget support when members face severe economic stress from higher energy and food prices, shortages, import disruptions, or fiscal pressure. The facility can support targeted social protection, critical public spending, continuity of public services, and measures that strengthen energy and food security, while maintaining requirements for sound macroeconomic management and debt sustainability. ADB’s contingent disaster financing will also be expanded to cover energy- and food-related emergencies. Under this tool, ADB works together with its members to undertake upstream reform measures which build resilience and disaster preparedness. This unlocks financing before a crisis, which can be drawn down quickly when agreed conditions are met. Under the new approach, disbursement can be triggered by an official emergency declaration or by clear economic impacts, such as a sharp rise in fuel and food import bills, a worsening current account balance, or significant energy- and food-related inflation. The framework will allow more flexibility for fragile and conflict-affected situations and small island developing states. The emergency assistance loan will be updated to cover energy-related emergencies, in addition to its existing coverage of food-related emergencies. This will allow ADB to support urgent action even when a crisis does not destroy physical infrastructure but still threatens lives, livelihoods or essential services. ADB will use rapid impact assessments to identify urgent needs, including disruptions to energy and food supplies, rising service delivery costs, and risks to health, transport, education, water, utilities, and other public services. ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

Tuesday July 14, 2026 1:05 pm

ECONOMYNEXT – Sri Lanka has launched an international tender for a large‑scale battery energy storage project, its Board of Investment has said, aimed at strengthening the country’s power grid. The National System Operator (Pvt) Ltd, under the Ministry of Energy, has launched an international competitive bidding process for the establishment of a 250 MW/1000 MWh Standalone Battery Energy Storage system structured as 10 MW/40 MWh AC capacity projects across 25 grid substations island-wide. The project will be on a build, own and operate (BOO) basis, the BoI said. “This is a significant opportunity for global and local developers to participate in Sri Lanka’s energy storage transition and support grid stability as the country scales up renewable integration.” The 15-year energy storage agreement will see connection at 33kV across 25 substations, including Ambalangoda, Ampara, Bolawatta, Chunnakam, Hambantota, Kurunegala, Matara, Galle, Monaragala and other locations. The proposal submission deadline is August 14, by 10.00 hrs. RFP documents will be available until August 13, 10.00 hrs. The fee is 150,000 rupees for locals and 500 dollars for overseas investors.

⚡ Sri Lanka Opens International Tender for 250 MW/1000 MWh Battery Energy Storage SystemThe National System Operator (Pvt.) Ltd., under the Ministry of Energy, has launched an international competitive bidding process for the establishment of a 250 MW/1000 MWh Standalone… pic.twitter.com/XEQOIZZYKf — Board of Investment of Sri Lanka (@Investin_SL) July 14, 2026

Inquiries can be made at re_escp@nso.lk (Colombo/Jul14/2026)

Tuesday July 14, 2026 11:22 am

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was red midday Tuesday, CSE data showed, with the benchmark All Share Price Index moving down 0.27 percent. The ASPI was down 59.11 points at 21,473.27, while the more liquid S&P SL20 was down 0.04 percent, or 2.64 points at 6,019.55. Positive contributors to the ASPI were Cargills (Ceylon) (up 3.38 percent at 649.75 rupees), Dialog Axiata (up 0.69 percent at 44.00 rupees), RIL Property (up 1.63 percent at 24.90 rupees), and Sampath Bank (up 0.18 percent at 137.50 rupees). Melstacorp (down 1.23 percent at 181.00 rupees), LOLC Holdings (down 0.25 percent at 492.00 rupees), Hatton National Bank (down 4.76 percent at 36.00 rupees), and Richard Pieris and Company (down 2.58 percent at 30.20 rupees) were top negative contributors. Market turnover was 322.4 million rupees. Food, Beverage & Tobacco led turnover with 65.7 million rupees. BPPL Holdings announced its wholly owned subsidiary, Beira Brush (Private) Limited, has entered into a Business Transfer Agreement to acquire the customer base of Ravi Industries, along with the “Ravi” trademark and related intellectual property. The minimum total consideration for the acquisition is 300 million rupees, which will be paid over a five-year period based on revenue generated from the acquired asset base. (Colombo/July14/2026)

Tuesday July 14, 2026 11:17 am

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 336.30/50 to the US dollar in the spot market on Tuesday, from 336.00/20 the previous day, while bond yields were slightly higher, dealers said. On Monday, the government sold 15 billion rupees in 2030, 2034 and 2037 bonds. Sri Lanka sells Rs150bn in 2030, 2034 and 2037 bonds A bond maturing on 01.08.2030 was quoted at 11.50/55 percent, up from 11.40/45 percent. A bond maturing on 15.10.2030 was quoted at 11.55/60 percent, up from 11.50/55 percent. A bond maturing on 01.11.2033 was quoted at 11.80/85 percent, up from 11.75/85 percent. A bond maturing on 15.06.2034 was quoted at 11.95/12.05 percent, up from 11.80/90 percent. A bond maturing on 15.10.2034 was quoted at 12.00/08 percent. A bond maturing on 01.07.2037 was quoted at 12.58/62 percent. Rs. 120,000 million Treasury bills are to be issued through an auction on July 15. (Colombo/Jul14/2026)

Tuesday July 14, 2026 11:01 am

ECONOMYNEXT — Sri Lanka’s Marine Environment Protection Authority (MEPA) has launched a web-based mobile application called Ocean Watch to digitize marine and coastal conservation efforts, the agency said. The platform aims to streamline waste management across the island’s coastline and ports by improving coordination between government bodies, local authorities, and private organizations. Through the app, users can report marine pollution incidents and lodge environmental complaints in real time. It also allows authorities to map out coastal areas requiring immediate clean-ups and identify strategic locations in canals to install waste barriers, preventing land-based trash from reaching the ocean. “The new digital platform will improve the efficiency of marine environmental management while empowering citizens to contribute to protecting Sri Lanka’s marine resources,” MEPA said in a statement. The app is also designed to act as a bridge between the state and the private sector, facilitating coordination for beach clean-up programmes. MEPA noted that the application will encourage private firms and non-governmental organizations (NGOs) to adopt designated coastal stretches for maintenance over agreed periods through Corporate Social Responsibility (CSR) initiatives. (Colombo/July 14/2026)