Prime Minister’s Media Division

The Prime Minister mentioned that the Local Loans Development Fund has decided to add renewable energy to the local government sector and further he continued that such positive new thinking is required for the development. The Prime Minister expressed these opinions on 15.07.2024 at Temple Trees, at the occasion of awarding concessional loans for solar energy and development projects of Local Government Institutions implemented by the Local Loans Development Fund.

Prime Minister stated at the event that-

“The Local Loans Development Fund is facing a new challenge along with the problems faced in this period. The local government sector is the lowest active service in the development of our country. As an institution created to provide services for the public, working closely with the public is the foundation of local government. The Local Government Fund has contributed a great deal in the long-term development of local government. That is why this institution has made special efforts and sacrifices to work together with the Ministry of Local Government and the Provincial Council institutions after 1987.
All sectors were accused of poor financial management internationally. A big crisis has been created in the financial sector due to the failure of proper management of state banks and not accessing proper investments. Even if they did not accept this as politicians, the moment when this crisis escalated was time when our financial system turned into a standstill.
Like other institutions, the Local Loans Development Fund also entered into new areas of thinking.

You are the institution among the banks in Sri Lanka that made the decision without fear to add renewable energy to the local government sector. Development needs such positive new thinking. Banks hesitate to invest money. If the banks had the ability to invest money, if the Electricity Board had allowed that law, solar energy would be far ahead in Sri Lanka.

Local government institutions were late in adopting the electricity that can be generated by using solar heat and the electricity that can be generated by wind power, which is a gift given to our country for 12 hours out of 24 hours a day. Our local government should go through these challenges. The Local Loans Development fund took that step forward. Today, when government institutions and non-governmental organizations are working on ways to reduce costs across the country, the Local Loans Development fund took a decision very early. That is the reality.

If a bank has the ability to take a decision on its own, all banks should be able to take this decision. It didn’t happen. Your decision as a bank to give a loan to a local government institution, to a municipal council will bring about a big change in our local government and the banking system in Sri Lanka. It took a hundred years to make this decision without fear.
United Nations Development Agency, Asian Development Bank has supported us to manage our waste and convert it to use. When a house is built in the local government, it is brought to your institution for approval.
When building houses and buildings, all applications must be submitted to and approved by the local government. Considering the new applications, we advise our local government to be proactive in requesting that fifteen percent solar power be used in that building. Provincial Councils are also advised to maintain the same activity. If you do that, gradual change will occur…”

Governor of the North Western Province Naseer Ahmed, State Minister Janaka Wakkumbura, Members of Parliament Jagath Samarawickrama, Sarath Chandrasiri Muthu Kumarana, Yadamini Gunawardena, representatives of United Nations Development Agency, Asian Development Bank, Asia Foundation, Secretary to the Ministry of Public Administration Pradeep Yasaratne, Chief Executive Officer of Local Loans Development Fund K.D. Chithrapala, Secretaries of Provincial Council and a group of representatives participated in this event.

Prime Minister’s Media Division