Sri Lanka is set to accelerate the modernisation of its electricity infrastructure with Cabinet approval for the installation of 300,000 smart meters equipped with a Time-of-Use billing system.

The two-year initiative will utilise US$12.5 million remaining from a US$15 million concessional loan facility provided by the Asian Development Bank to support complementary projects linked to renewable energy development.

Cabinet Spokesman and Minister Dr Nalinda Jayatissa said the smart meter programme forms part of the Government’s broader effort to modernise Sri Lanka’s electricity grid and strengthen the integration of renewable energy into the national power system.

The original ADB financing facility was approved by Cabinet in October 2024. Of the US$15 million allocation, US$2.5 million was subsequently earmarked in September 2025 for detailed design work and procurement documentation relating to the Maha Oya Pumped Storage Hydropower Development Project.

The remaining US$12.5 million will now finance the smart metering programme, which is to be implemented by Electricity Distribution Lanka (Pvt) Ltd.

Time-of-Use technology enables electricity consumption to be measured according to different periods of the day, providing the infrastructure needed for more sophisticated tariff structures and improved demand management.

The project is expected to strengthen electricity network efficiency, encourage more effective consumption patterns and provide an important technological foundation for Sri Lanka’s transition towards a smarter and increasingly renewable-energy-driven power system.