The Cabinet of Ministers has approved agreements to obtain a US$35 million concessional loan from the Asian Development Bank (ADB) along with additional grants to implement the “Grid-Based Rooftop Solar Power and Virtual Net Meter Reading” project.

The project has been identified as a priority initiative aimed at improving the effective use and distribution of solar energy while supporting independent power producers and expanding small- and medium-scale renewable energy projects, according to a statement issued by the Department of Government Information.

The government had earlier approved proposals to negotiate with the ADB and other relevant parties regarding project financing.

Following discussions with the Asian Development Bank, the European Union and the Japanese Fund for the Joint Crediting Mechanism, agreements have been finalised to secure the required financial assistance.

Accordingly, the Cabinet approved the proposal submitted by President Anura Kumara Dissanayake, in his capacity as the Minister of Finance, Planning and Economic Development, to enter into loan and grant agreements.

The financing package includes a US$35 million concessional loan from the ADB, a EUR 15.4 million grant from the European Union and a US$5.5 million grant from the Japanese Fund for the Joint Crediting Mechanism.