BAKU, Azerbaijan, October 9. The Asian Infrastructure Investment Bank (AIIB) has approved a $52 million sovereign-backed loan to support Sri Lanka’s efforts to strengthen its power infrastructure and advance renewable energy development through the Kerawalapitiya–Port L Second Transmission Line Project, Trend reports.
The loan agreement was signed by Rajat Misra, AIIB’s Director General for Public Sector Clients (Region 1), and Dr. Harshana Suriyapperuma, Secretary to the Treasury and Ministry of Finance, Planning and Economic Development of Sri Lanka. The signing ceremony was attended by Energy Minister Eng. Kumara Jayakody, Deputy Minister of Economic Development Anil Jayantha Fernando, and AIIB President Jin Liqun.
The project includes the design, supply, and construction of a 220kV single-circuit underground cable system linking the Kerawalapitiya Switching Station with the Colombo Port L Grid Substation. It will serve as the second transmission line along this route, complementing the first one commissioned in 2019, which will soon be insufficient to meet rising electricity demand in the Greater Colombo area.
“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 completed, the project will help stabilize power supply across the Greater Colombo region, support the development of a new special economic zone, and improve reliability for businesses and households. It will also facilitate the integration of renewable energy from the northern and eastern regions into the national grid.
Sri Lanka, a founding member of AIIB, has so far partnered with the Bank on five major infrastructure projects totaling $534 million in financing, spanning the energy, transport, and urban sectors.