The Asian Infrastructure Investment Bank ( AIIB ) will lend US$52 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.

The project involves the design, supply, construction, testing, and commissioning of a 220-kilovolt 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 centres 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,” says Rajat Misra, director general, public sector clients department ( Region 1 ), at AIIB. “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.

To date, AIIB has supported five transformative projects in the country, with a total financing of US$534 million across the energy and urban sectors, driving sustainable growth and development.