Green Power loan
Loans for businesses registered and operating in Sri Lanka to finance green investments and working capital, including renewable electricity projects.
Denne finansieringsmuligheten er foreløpig beskrevet på engelsk.
Green Power finances investment and working-capital needs that qualify under Sri Lanka’s green finance taxonomy. For example, the taxonomy directly includes electricity generation from wind and concentrated solar power, which uses solar heat to generate electricity. The scheme also covers wider environmental activities across agriculture, manufacturing, utilities, construction, tourism and transport.
The bank finances up to 75% of the proposed project cost, capped at LKR 500 million. You must invest your own contribution upfront. Investment loans run for up to ten years, including up to two years before you start repaying principal; you still pay interest during that grace period. Working-capital loans run for up to three years with no grace period. Loans for machinery or equipment cannot run beyond its useful life.
For loans up to LKR 100 million, one option fixes interest at 12% for the first five years. From year six, the rate is the weekly average weighted prime lending rate (AWPLR), a bank lending benchmark, plus one percentage point, reviewed monthly. The other option is available up to LKR 500 million: it uses weekly AWPLR for the first five years and adds one percentage point from year six, with monthly reviews. The bank charges 2% penal interest on overdue instalments where applicable.
Loan-processing and early-settlement fees apply. Valuation and legal charges, government stamp duty and insurance premiums also apply where relevant.
Eligibility
- Your business must be registered and operating in Sri Lanka, and the project must be economically and financially viable. The bank assesses your repayment capacity.
- You can apply with a current account that you have run satisfactorily for six months at People’s Bank or another bank. Prospective People’s Bank customers can also apply.
- You must hold valid environmental clearances and approvals from the relevant authorities. Your project must comply with the Central Bank of Sri Lanka’s green taxonomy and receive the bank’s green finance evaluation committee approval.
- Taxonomy compliance means meeting the metrics and thresholds for your particular activity; a sector label alone is insufficient. The taxonomy also sets principles of substantial environmental contribution and avoiding significant harm to other environmental objectives.
- The bank evaluates current business performance and finances. It generally expects acceptable collateral or security, and checks internal credit obligations and Credit Information Bureau (CRIB) obligations regardless of loan size.
How to apply
- Status
- Løpende søknader
- Vilkår for søknadsrunden
- Apply through a People’s Bank branch or service centre; subject to credit assessment and green finance committee approval.[^c6][^c7]
Call or visit your nearest People’s Bank branch or service centre to apply. Prospective customers are included in the published eligibility route. You can contact the SME Development Unit on 0112481356. The bank’s lending terms can change, so the branch provides the prevailing terms during the application discussion.