$52 Million AIIB-Funded Power Cable Project Begins

$52 Million AIIB-Funded Power Cable Project Begins

by Staff Writer 07-08-2026 | 8:44 AM

COLOMBO (News 1st): Construction work on the second 220-kilovolt underground transmission cable system from the Kerawalapitiya Grid Substation to the Colombo Port Grid Substation has commenced.

The project is implemented through a financial assistance loan of 52 million US dollars from the Asian Infrastructure Investment Bank (AIIB).

The underground transmission cable system will span across 16 kilometers.

Additionally, it includes the modernization of the relevant substations and the installation of control systems.

Deputy Minister Arkam Ilyas stated that the existing cable system constructed in 2019 is no longer sufficient to meet the rapidly increasing electricity demand in the Colombo area, including the Colombo Port City.

This new project will provide the capability to act as an alternative route without disrupting the power supply during maintenance work or sudden system breakdowns.

This project will facilitate the integration of electricity generated by the Kerawalapitiya LNG power plants into the national grid, as well as provide the necessary facilities to connect renewable energy generated in the Northern and Eastern provinces to the national grid.