IFC is partnering with the Commercial Bank of Ceylon (CBC) to help the Sri Lankan bank invest more in local companies focused on renewable energy and energy efficiency.
The aim is to help CBC provide credit support to green projects, bringing more private sector investment into the South Asian island’s clean energy sector, via IFC’s Green-Finance Program.
CBC already offers special terms for both businesses and consumers on investments made on green projects, but IFC can now also give advisory support to the bank.
Sri Lanka currently meets 70% of its energy requirements through thermal power, so renewable energy will help reduce its dependence on fossil fuel-based energy sources.
Jegan Durairatnam, managing director of CBC, added: “There is substantial untapped potential in Sri Lanka for investments in green-energy projects.”
From a fairly muted start in PV compared to other Asian regions, Sri Lanka has seen various major solar-related announcements this year, including an international tender to set up a 100MW floating solar plant and plans to build a hybrid renewable energy park with 240MW of wind and 800MW of solar.