India extends US$ 100 million Line of Credit to Sri Lanka for solar energy projects

International

New Delhi, 17 June: India has extended a US$100 million Line of Credit (LoC) to Sri Lanka for projects in the solar energy sector.

An agreement to this effect, between the Government of Sri Lanka and EXIM Bank of India, was exchanged on Wednesday in the presence of Sri Lankan President Gotabaya Rajapaksa.

The agreement was exchanged between the High Commissioner of India to Sri Lanka Gopal Baglay and Sri Lanka’s Secretary to the Treasury S.R. Attygalle, according to a statement of the Indian High Commission in Sri Lanka.

This US$ 100 million LOC will help finance various projects in the solar energy sector in Sri Lanka and will include those announced during the Founding Conference of the International Solar Alliance (ISA) held in March 2018, such as rooftop solar photo-voltaic systems for households and government buildings.

It may be recalled that 89 countries, including Sri Lanka, have signed the Framework Agreement of the ISA, which was jointly launched by the Prime Minister of India and the President of France.

The agreement aims to bring together countries to promote large-scale deployment of solar energy and overcome challenges related to technology, finance and capacity.

Also, with the exchange of the agreement, India has become the first country to partner with Sri Lanka in fulfilling the vision of the President Rajapaksa, to ensure that 70% of Sri Lanka’s national power requirements are fulfilled by renewable energy sources by 2030.

The Sri Lankan President and High Commissioner of India discussed the striking similarity in the national objectives outlined by India and Sri Lanka in connection with solar energy.

Over the past 7 years, solar power generation in India has increased significantly to reach 34.6 GW in 2021 from about 2.6GW in March 2014. The National Solar Mission of India aims to increase it further to 100 GW and beyond.

The shared vision of our countries in the renewable energy sector reflects our common national priorities and convergence of approaches for sustainable development, the Indian High Commission stated.

Strengthening collaboration in this vital sector will help enhance our overall energy partnership and contribute towards our global efforts to tackle climate change and reduce emissions, it informed.

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