Colombo, 15 September 2026 – Vidullanka PLC, a prominent player in Sri Lanka’s renewable energy sector, has announced a significant step forward in its commitment to sustainable power generation. The company has made an initial share subscription of LKR 100 million in Vidul Biomass II (Pvt) Limited, the dedicated project company spearheading the ambitious 6.6MW Medawachchiya Dendro Power Project.
This corporate disclosure, made to the Colombo Stock Exchange (CSE) in terms of Section 8 of its Listing Rules, signals a crucial equity infusion into what is set to become Vidullanka’s second biomass-to-energy facility, further solidifying its presence in the green energy landscape.
Strategic Investment in Green Energy Infrastructure
The Board of Directors of Vidullanka PLC confirmed the subscription of 1,000,000 ordinary shares in Vidul Biomass II (Pvt) Limited for a total consideration of LKR 100,000,000/-. This investment represents the initial equity commitment towards the Medawachchiya project, with further tranches of equity and project-level debt expected to follow as construction progresses.
The Medawachchiya Dendro Power Project: Key Details
The proposed greenfield Medawachchiya Dendro Power Plant is poised to significantly contribute to Sri Lanka’s national grid with stable, non-intermittent baseload electricity. Key aspects of the project include:
- Project Name: Medawachchiya Dendro Power Plant
- Location: Medawachchiya, Anuradhapura District
- Installed Capacity: 6.6 MW Gross / 5.0 MW Nett
- Project Scope: Building on the success and technical expertise gained from the commercially operational 3.3MW Deniyattakaldiya Biomass Power Plant in Ampara, this facility will leverage sustainable fuelwood. The fuel will be sourced through established out-grower schemes and local plantations managed by Vidullanka’s dedicated plantation division, ensuring a consistent and environmentally responsible supply chain.
Project Cost, Equity, and Commissioning Timeline
The total project cost for the Medawachchiya Dendro Power Plant is estimated at USD 16.1 million. Vidullanka PLC’s total equity commitment towards this venture is approximately LKR 1,300 million. The recently announced LKR 100 million share subscription is the inaugural equity infusion by the company, with the balance to be funded progressively.
Looking ahead, the project is anticipated to achieve formal commissioning and grid-connection by the mid-point of the next financial year, specifically mid-FY 2027/28.
Strategic Rationale and Economic Impact
Vidullanka PLC highlights the strategic importance of the Medawachchiya project, particularly its role in providing stable, continuous baseload power. This type of power generation is critical for balancing the national grid, especially given the seasonal variations that often impact other renewable energy sources like hydro or solar.
Developing the Medawachchiya project is seen as a crucial strategic stabilizer for Vidullanka PLC, acting as a natural hedge against these seasonal fluctuations and thereby strengthening the Group’s overall revenue resilience. Beyond the financial and operational benefits, the project is also expected to generate considerable positive economic impact within the Anuradhapura region. This includes expanding the sustainable agricultural out-grower network and supporting rural farming livelihoods, fostering community development alongside green energy production.
This latest move by Vidullanka PLC underscores its unwavering commitment to expanding Sri Lanka’s renewable energy footprint and contributing to a more sustainable and resilient national power supply.
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