Sri Lanka has obtained a loan of USD 52 million from the Asian Infrastructure Investment Bank (AIIB) to support the development of a 220 kV underground transmission line aimed at strengthening the country’s electricity infrastructure.
The project will enhance power transmission reliability and efficiency in the Colombo metropolitan region, where energy demand continues to grow rapidly. The new underground system will help reduce transmission losses, improve grid stability, and ensure uninterrupted electricity supply to critical urban and industrial areas.
According to the Ministry of Finance, the project forms part of Sri Lanka’s broader strategy to modernize its power grid and transition toward a more resilient and sustainable energy network. The funding from AIIB will cover design, construction, and installation costs for the underground line, including substations and related facilities.
The AIIB-backed initiative is also expected to reduce environmental and social impacts typically associated with overhead transmission lines, promoting a cleaner urban landscape and improved public safety.
Officials noted that the project will play a crucial role in meeting Sri Lanka’s long-term energy security goals while supporting future renewable energy integration into the national grid.
