Sri Lanka will purchase at least 75 percent of the equipment needed for the solar energy projects being funded by India from India itself. New Delhi has recently extended a $100 million line of credit (LoC) to Colombo for solar energy projects. 

India has put this condition of purchasing equipment needed for the projects with Sri Lanka, Sulakshana Jayawardena, the director (Development) of Sri Lanka's Ministry of Power, confirmed to the Morning, a Sri Lankan English daily.  

“Following the detailed study on this solar project, tenders will be called for manufacturers and suppliers from India,” Jayawardena added. 

LoC is a 15-year loan of a fixed rate of 1.75% and that within a period of a decade and a half, and Colombo is ought to pay back to India Exim Bank, S.R. Attygalle, Sri Lankan Treasury Secretary said. 

The project will be completed in three years. A major portion of the fund will be utilized for solar rooftop systems for government buildings and 85% of the fund, around $85 million, Attygale said. 

A consultant would be deployed by the Exim Bank, Jayawardena said, adding a detailed study will be conducted by this consultant. 

“Now we have identified the buildings and the project capacity of solar power generation,” he added, and the completion of the study would possibly take three months. 

(SAM)