The project focuses on the international finance organization's (IFC) view to help Sri Lanka improve its negative trade balance and refocus resources to clean and sustainable energy sources in selected industries in a measurable transparent way. It also discusses the sources of funds such as tax revenues to be IFC-MIGA Private Sector Window to drive investments.

2. SRI LANKA - KEY ECONOMIC FACTS
Sources Of Finance Economic Performance
Remittences 74% (7.19bn) GNI per cap $3840
FDI 14% (1.38bn) Govt Debt 77.65% of GDP
ODA 8% (.777bn) Revenue
collection
12.5%
Other 3% (.148bn) Trade Balance $ - 5bn
Primarily driven by oil imports
The project work will focus on SDG #7 Affordable and Clean Energy to
replace oil needs and reduce the trade imbalance as well as act as a
sustainable growth engine to the Sri Lankan economy

3. OIL VS. ELECTRICITY
Oil consumption has plateaued by 2014 but electricity capacity has
continuously increased up in the period 2000-2014/2016. This indicates that
there is a public private partnership opportunity to drive oil consumption /
dependency down in favor a more sustainable energy sources

4. AFFORDABLE AND CLEAN ENERGY INITIATIVE
Step 1.
Primary source of funding: increased tax revenues (historical data shows
that, if enforced, Sri Lankans will pay their taxes (early 1990s tax
collection stood at 20%)
Step 2.
Establish key industries where sustainable energy production as % of oil
consumption is subsidized (critical industries may include garment
industry, automotive, etc)
Step 3.
Attract large investors to establish solar, wind, geothermal based clean
energy plants at subsidized prices which is tracked against oil
requirement declines and given Sri Lanka’s history of violence
guarantee those investments through MIGA

5. DESIRED OUTCOME
Key industrial
sectors identified
Sector-wise Oil
consumption
established
Investment
opportunities
established by
government
MIGA guarantees
private investors
Trade imbalance
reduces
SDG #7 achieved

6. MAXIMIZING FINANCE FOR DEVELOPMENT
Step 1.
Establish goals and targets for funds to be used to fund clean energy
projects – solar, wind, geothermal – utilize loans, grant schemes and
private investment requirements for the government to comply with.
Step 2.
Use Infrastructure Assessment program and the IFC-MIGA Private Sector
Window to fund projects
Require selected firms to mandatorily invest their CAPEX in IFC-funded
sustainability projects.
Step 4.
Track and measure the outcome sector by sector, crowding in effects, and
declining trade balances on oil imports.