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ADB Approves $57.4M for Sri Lanka’s Solar Power Expansion

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The Asian Development Bank (ADB) has approved a $57.4 million financing package to support Sri Lanka’s efforts to expand access to affordable clean energy and reduce greenhouse gas emissions through an ambitious rooftop solar aggregation and virtual net metering initiative.

The financing package includes a $35 million concessional loan, $16.9 million in grants from the European Union, and $5.5 million from the Japan Fund for the Joint Crediting Mechanism. With additional counterpart funding from implementing agencies, the total estimated project cost stands at $80.5 million.

The Rooftop Solar Aggregation and Virtual Net Metering Project will enable two government-owned utilities, Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited, to roll out a scalable model that pools electricity generated from large rooftop solar systems and redistributes it virtually to eligible consumers.

This model allows multiple users to benefit from solar power without the need to install rooftop panels individually.

Economy

Sri Lanka named World’s Top Trending Wellness Destination for 2026

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Sri Lanka has been named the world’s top trending wellness destination for 2026, according to the latest State of Retreats 2026 Report released by BookRetreats. com.

The report ranked Sri Lanka first after recording a 100% year-on-year increase in search interest on the platform, ahead of Australia (85%), Morocco (83%), England (82%) and Spain (80%).

BookRetreats. com attributed Sri Lanka’s rise to its long-standing Ayurvedic tradition, affordability and natural attractions. It noted that wellness retreats in Kandy start from around US$373, making them significantly cheaper than similar experiences in Europe.

The report also highlighted Sri Lanka’s recent decision to waive tourist visa fees for visitors from 40 countries, saying the move has made wellness holidays on the island even more attractive.

In addition to wellness offerings, the report cited Sri Lanka’s wildlife, including the world’s largest gathering of wild elephants and opportunities to spot blue whales, as well as its year-round beach destinations, as key attractions for travellers.

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Economy

Sri Lanka’s export earnings surpass USD 7.3 bln in first five months of 2026

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Sri Lanka’s export sector has recorded significant growth during the first five months of 2026, with total export earnings exceeding the USD 7.3 billion mark.

According to provisional data released by Sri Lanka Customs, together with estimated figures for gems and jewellery and petroleum product exports, total earnings from merchandise and service exports between January and May 2026 amounted to an estimated USD 7,393.39 million. This represents a 7.56% increase compared to the corresponding period in 2025.

During the same period, merchandise export earnings increased to USD 5,758.44 million, recording a growth of 7.63% year-on-year.

The service exports sector also showed positive performance, generating USD 1,634.95 million in revenue, reflecting a 7.31% increase compared to the previous year.

Meanwhile, in May 2026 alone, merchandise exports recorded a growth of 18.25%, while service exports increased by 18.67% compared to the same month in the previous year.

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Economy

Cabinet approves electrification of key railway corridors in Sri Lanka

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The Cabinet of Ministers has approved a proposal to electrify key railway corridors in Sri Lanka as part of a long‑term transport modernization strategy.

Corridors with high commuter density have been prioritized for electrification, with support expected from international development institutions.

Currently, most railway operations rely on diesel power, and officials have highlighted the need to upgrade tracks, signaling systems, and related infrastructure to improve efficiency and reliability.

The government’s new programme focuses on constructing additional lines, building double tracks, modernizing signals, and introducing electrification to create a modern rail transport system.

According to the government, the initiative aims to expand passenger capacity, reduce travel times, and contribute to an environmentally friendly and sustainable public transport service.

The Cabinet approved the proposal presented by the Minister of Transport to begin electrification in the following routes:

Main Line — Maradana to Ragama, including station upgrades at Gampaha, Veyangoda, Mirigama, and Polgahawela.

Kelani Valley Line — Maradana to Makumbura.

Coastal Line — Maradana to Panadura

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