Colombo:The Government of Sri Lanka has secured financing from the Asian Development Bank (ADB) alongside grants from the European Union (EU) and the Government of Japan for the Rooftop Solar Integration and Virtual Net Metering Project, which aims to expand access to affordable and clean energy.

According to News.LK, the financing package includes a USD 35 million concessional loan from the ADB, a EUR 15.4 million grant from the European Union (approximately USD 16.94 million), and a USD 5.5 million grant from the Japan Fund for the Joint Crediting Mechanism (JFJCM).

The project will be implemented by the Ministry of Energy in partnership with Electricity Distribution Lanka (Private) Limited (EDL) and Lanka Electricity Company (Private) Limited (LECO) from 2026 to 2030. It will support the government’s efforts to expand access to affordable clean energy.

The initiative includes enhancing EDL’s CEBAssist solution with an Advanced Metering Infrastructure (AMI) system, a Distributed Energy Resource Management (DERM) system, and distribution control centers utilizing an Advanced Distribution Management System (ADMS). This enhancement is expected to digitalize customer and operational services, improve network reliability, and facilitate the expansion of renewable energy use.

For the first time in Sri Lanka, Virtual Net Metering (VNM) will be introduced as part of the project. With EU grant financing, 25 MW of aggregated rooftop solar photovoltaic (PV) capacity will be deployed to reduce electricity costs for small and medium-sized entrepreneurs. These solar installations will feature advanced control capabilities for optimized generation management.

Within the LECO service area, the project will also see the installation of low-loss conductors to improve distribution efficiency and high-capacity battery energy storage systems to better accommodate renewable energy. The focus will be on enhancing the network’s capacity, particularly in the Negombo area, to connect more commercial and industrial loads and improve the overall reliability and flexibility of electricity supply.

The loan and grant agreements were signed at the General Treasury in Colombo on October 1, 2026, by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, and Ms. Shannon Cowlin, ADB Country Director for Sri Lanka. The signing ceremony also included Ms. Virginie Laffeur-Tighe from the EU Delegation to Sri Lanka and Mr. Naoki Kamoshida from the Embassy of Japan in Sri Lanka.