AIIB approves $52m loan for Sri Lanka’s Kerawalapitiya-Port L transmission line

The Asian Infrastructure Investment Bank (AIIB) will provide $52m in sovereign-backed financing to Sri Lanka to support the Kerawalapitiya-Port L Second Transmission Line Project, aimed at strengthening renewable energy integration and grid stability in the Greater Colombo area.

The project covers the end-to-end delivery of a 220kV single-circuit underground cable system, including design, procurement, construction, testing, and commissioning. It will connect the Kerawalapitiya Switching Station with the Colombo Port L Grid Substation and complement the first line, commissioned in 2019, which will soon be insufficient to meet projected electricity demand.

Rajat Misra, AIIB director general for Public Sector Clients Department (Region 1), highlighted that this is AIIB’s first energy sector project in Sri Lanka, reflecting the bank’s commitment to supporting the country’s power infrastructure and energy transition. The project is expected to improve grid reliability, support economic growth, and benefit local communities, urban services, and businesses in the Greater Colombo area.

AIIB has financed five projects in Sri Lanka across energy, transport, and urban sectors, totaling $534m.