India extends USD100 million LoC to Sri Lanka for solar energy projects

India and Sri Lanka have signed an agreement for a USD100-million loan from the Export Import Bank of India to support Sri Lanks’s efforts to expand solar power coverage.

The line of credit (LoC) extended by India, reportedly, is for a period of 20 years, with an interest of 1.75 per cent. Sri Lanka has an installed capacity of 4,213 MW of power. While 1,400 MW of that is hydropower, some 900 MW is produced from coal. Over the last five years, Sri Lanka has sought to tap more renewable sources of power, particularly solar power.