India has signed an agreement extending a US$ 100 million Line of Credit (LOC) to Sri Lanka for projects in the Solar Energy Sector.
The agreement was signed between the Government of Sri Lanka and the Export-Import Bank of India.
A press statement from the Indian High Commission in Colombo said, ‘India has become the first country to partner with Sri Lanka in fulfilling the vision of the President of Sri Lanka, Gotabaya Rajapaksa, to ensure that 70% of Sri Lanka’s national power requirements are fulfilled by renewable energy sources by 2030,”
The agreement was exchanged in the presence of President Rajapaksa, between the High Commissioner of India to Sri Lanka, Gopal Baglay and the Secretary to the Treasury, S.R. Attygalle. President Gotabaya Rajapaksa and the High Commissioner of India also discussed the striking similarity in the national objectives outlined by India and Sri Lanka in connection with solar energy.
President Rajapaksa in his tweet said “Sri Lanka is going green, and we are working extensively to make it happen. Today, we formalized the agreement on the Line of Credit worth US$ 100M b/w Sri Lanka and the Export & Import Bank of India. Steadily, we’re getting closer to the goal of 70% renewable energy by 2030.”
This US$ 100 million LOC will help finance various projects in the solar energy sector in Sri Lanka, such as rooftop solar photo-voltaic systems for households and government buildings. Some of the projects were announced during the Founding Conference of the International Solar Alliance (ISA) held in March 2018 in Delhi.
Thus far 89 countries, including Sri Lanka, have signed the Framework Agreement of the ISA, which intends to bring together countries to promote the large-scale deployment of solar energy and overcome challenges related to technology, finance and capacity.