The Asian Infrastructure Investment Bank (AIIB) will lend USD52 million in sovereign-backed financing to help Sri Lanka unlock its renewable energy potential and advance sustainable development through the Kerawalapitiya–Port L Second Transmission Line Project.
Rajat Misra, Director General, Public Sector Clients Department (Region 1), AIIB, signed the loan agreement with Dr. Harshana Suriyapperuma, Secretary to the Treasury / Ministry of Finance, Planning and Economic Development of the Government of the Democratic Socialist Republic of Sri Lanka in the presence of Eng. Kumara Jayakody, Minister of Energy and Dr. Anil Jayantha Femando, Deputy Minister of Economic Development from Sri Lanka and AIIB President Jin Liqun.
The project involves the design, supply, construction, testing, and commissioning of a 220kV single-circuit underground cable system connecting the Kerawalapitiya Switching Station and the Colombo Port L Grid Substation. This is the second underground cable along this route and will complement the first line, commissioned in 2019, which will soon be insufficient to meet the projected electricity demand in the Greater Colombo area. The new transmission line is critical to ensuring uninterrupted power supply, maintaining grid stability, and enabling the evacuation of renewable energy from the northern and eastern regions toward major load centers in Colombo.
“This marks AIIB’s first energy sector project in Sri Lanka, reflecting our strong commitment to supporting the country’s power infrastructure and energy transition,” said Misra. “By enhancing grid stability and ensuring reliable electricity supply, the project will deliver lasting economic and social benefits for Sri Lanka, while reinforcing its path toward sustainable growth and resilience.”
Once operational, the project is expected to benefit local communities, urban services, and businesses across the Greater Colombo development area by providing a more stable and reliable electricity supply. It will also support the growing power needs of the upcoming special economic zone and reduce the risk of major blackouts, delivering considerable economic and social benefits.
This project underscores the deepening partnership between AIIB and Sri Lanka, a founding member of the Bank. To date, AIIB has supported five transformative projects in the country, with a total financing of USD534 million across the energy and urban sectors, driving sustainable growth and development.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 110 approved members worldwide, is capitalized at USD100 billion and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
