The Small Hydro Power Industry of Sri Lanka has established a track record and credibility of excellent creditworthiness throughout the period since its inception. Securing finances through the lending institutions is relatively easy compared to other renewable energy projects, though this is subject to the track record of the borrower and the asset backing.

The project financing would involve a series of process, which would start with the initial formal loan request. The lending institution would require the detailed feasibility report, proving the technical, operational, legal, social and the financial feasibility of the project. The lending institution would seek at least one site visit to do their own due diligence.

Given the lender is satisfied that the project has the capability to repay the principal and the finance cost within the stipulated period, they would issue the offer letter based on the agreed terms and conditions.