IFC and CBC to help Sri Lanka boost renewable energy projects
IFC, a member of the World Bank Group, will help the Commercial Bank
of Ceylon evaluate and finance renewable energy projects in Sri Lanka in
an initiative that promises to yield environmental and economic rewards.
Head of Corporate Finance Commercial Bank Naveen Sooriyarachchi, DGM
Corporate Banking Commercial Bank Gamini Dharmasiri, Managing
Director Commercial Bank Amitha Gooneratne, Regional Manager IFC
Per Kjellerhaug, Head Investment IFC Jeetendra Marcelline, Head
IFC / SEDF Deva De Silva
IFC is extending a $15 million equivalent risk-sharing facility to
Commercial Bank to support Sri Lanka's power-generation capacity while
addressing climate change.
The initiative is part of IFC's strategy to help the private sector
mitigate climate change impacts while continuing to meet significant
infrastructure gaps in the South Asia region. The project is expected to
produce economic benefits for local project developers, including small
and medium enterprises.
IFC will share its financing, project-structuring capability, and
benchmark data for renewable energy technologies new with Sri Lanka. IFC
also will help enhance the bank's ability to appraise projects using
An advisory component funded by Governments of Ireland and Japan and
the Global Environmental Facility, will help the bank build the capacity
and skills needed to implement the program.
"We are proud to be the first to partner with IFC in an initiative
that uses a risk-sharing facility and a portfolio approach for financial
institutions such as ours to enhance the effectiveness of renewable
energy projects," said Managing Director, Commercial Bank of Ceylon,
The project follows a unique "distributed generation" approach, with
smaller scale production of electricity at or near energy demand
improving reliability of supply and lowering pollution by using
IFC Director for South Asia, Paolo M. Martelli, said, "The initiative
will support the Sri Lankan government's mission to increase private
participation in wind, hydro, and biomass projects. With most of the
country's power generation reliant on fossil fuels, this project will
help the country diversify its energy infrastructure."