Sri Lanka’s cabinet has approved loan and grant agreements worth roughly US$57 million to finance a rooftop solar aggregation and virtual net metering project, in a further step toward the island’s clean-energy transition.
According to EconomyNext, the funding package combines a US$35 million concessional loan from the Asian Development Bank’s ordinary capital resources, a €15.4 million grant from the European Union, and a US$5.5 million grant from the Japanese Fund for the Joint Crediting Mechanism (JFJCM).
Cabinet Spokesman and Minister Dr Nalinda Jayatissa said the scheme, formally titled the Grid-Based Rooftop Solar Power and Virtual Net Metering Project, was identified as a priority initiative to improve the effective use and distribution of solar power generated by independent producers, while supporting the expansion of small and medium-scale renewable energy projects.
The cabinet first cleared negotiations with the ADB and other development partners in November 2025, and those talks have now concluded. The proposal was submitted by President Anura Kumara Dissanayake in his capacity as Finance, Planning and Economic Development Minister, Daily FT reported.
Under the virtual net metering model, two state-owned utilities — Electricity Distribution Lanka (Pvt) Ltd and the Lanka Electricity Company (Pvt) Ltd — will pool electricity from large rooftop solar installations and distribute credits to eligible consumers, according to The Island. The mechanism is expected to widen participation by households and businesses in the national grid and deepen the integration of distributed renewable energy.
