The Asian Infrastructure Investment Bank (AIIB) and the Government of Sri Lanka have signed a $52 million sovereign-backed loan agreement for the Kerawalapitiya–Port L Second Transmission Line Project. This project will install a 220 kV underground cable linking Kerawalapitiya Switching Station to Colombo Port L Grid Substation, complementing the first line commissioned in 2019.
Power and Energy Minister Eng. Kumara Jayakody reiterated the government’s commitment to expanding renewable energy, framing it not only as an environmental goal but a strategic economic investment. Despite fiscal and institutional challenges, renewable projects like the 5 MW solar power plant in Galle are progressing, bolstered by private sector investment and public-private partnerships.
The Cabinet of Ministers has approved a Rs. 3 billion project to develop a state-of-the-art airfield facility at Rathmalana Airport. This decision follows earlier authorization to commence procurement and marks a strategic effort to modernize the airport's infrastructure to support enhanced aviation operations.
Sri Lanka’s construction sector is showing strong signs of revival, driven by the resumption of stalled projects and a surge in new activity, according to the latest data.
Sri Lanka and Japan formalized two milestone project agreements on September 29 during the official visit of Sri Lankan President Anura Kumara Dissanayake, underscoring a strengthened bilateral partnership. The agreements were exchanged in the presence of President Dissanayake and Japanese Prime Minister Shigeru Ishiba.
The Sri Lanka Construction Association (SLCA) has emphasized the critical need for local expertise in the resumption of the Kadawatha-Mirigama section of the Central Expressway. According to SLCA President Susantha Liyanarachchi, local engineers' deep understanding of Sri Lanka's unique terrain, including its marshlands and rainy weather, is vital for the project's effective completion.
Cinnamon Hotels & Resorts, a leading hospitality brand in Sri Lanka, has been awarded the 2025 Pacific Asia Travel Association (PATA) Gold Award for its Cinnamon Rainforest Restoration Project. The award, specifically for Best Ecosystem & Wildlife Conservation, recognizes the hotel's commitment to sustainable tourism and environmental preservation.
The renovation of the Pettah Central Bus Stand, Sri Lanka’s main bus terminal, has officially begun. The project, inaugurated by President Anura Kumara Dissanayake on September 15, is the first major renovation since the bus stand was built in 1964. The overhaul, estimated to cost Rs. 424 million, will be carried out by the Sri Lanka Air Force (SLAF).
The Netherlands has granted an additional EUR 730,000 to Sri Lanka, bringing its total grant contribution for the rural bridges project to over EUR 18.9 million. This latest grant, which accounts for about 37% of the total project cost, is part of a larger effort to assist Sri Lanka with its debt burden. The project is a key initiative to enhance mobility and connectivity in rural communities by constructing 162 bridges.
The construction of the first section of the Central Expressway (E04), a 37-kilometer stretch from Kadawatha to Mirigama, is set to resume in September or October. The project had been stalled for over three years due to Sri Lanka's economic crisis. The revival is made possible by renewed financial assistance from China, confirmed by the President's Senior Economic Adviser, Duminda Hulangamuwa.
