The Sri Lankan Government has announced four major infrastructure development projects in Kandy aimed at reducing traffic congestion and improving urban mobility. The projects will focus on the Getambe Flyover, Mahaiyawa Underpass, William Gopallawa Mawatha, and Louis Peiris Mawatha under the Central Province Development Programme.
The Sri Lankan Government has launched a survey to assess incomplete government housing projects in the Northern and Eastern Provinces, with the objective of accelerating the completion of long-delayed residential developments. The initiative aims to identify the current status of stalled housing schemes and prioritize their completion.
Sri Lanka’s construction sector returned to growth in May 2026, with the Purchasing Managers' Index (PMI) rising to 59.1 from 45.7 in April. The recovery was driven by a steady increase in new project awards and the resumption of construction activities following the seasonal slowdown during the April festive period.
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Sri Lanka has received its first commercial-scale Battery Energy Storage System (BESS) through the Colombo Port, marking a key milestone in strengthening national grid stability and supporting renewable energy integration. The initiative follows a government tender process launched in July 2025 for 160–640 MW of storage capacity across multiple substations.
The Hambantota 150 MW Solar PV Project has officially rejected allegations published in a recent media report concerning company registration, environmental compliance, and land use near the Hambantota Managed Elephant Reserve. In a formal response, the project group stated that all claims made against the development are false, misleading, and damaging to the reputation of the investors and companies involved.
The Central Environmental Authority has confirmed that environmental clearance has not been granted for the proposed cable car project at Sri Pada. Director General Kapila Rajapaksha stated that no official environmental approval has been issued for the project at the sacred and environmentally sensitive site.
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Work is scheduled to begin on six priority development projects in Sri Lanka’s Eastern Province under the framework Memorandum of Understanding on Indian Multi-Sectoral Grant Assistance. The initiative was agreed during the April 2025 state visit of Narendra Modi to Sri Lanka and aims to support socio-economic development across the region.
The International Finance Corporation has partnered with WindForce PLC to develop Sri Lanka’s first utility-scale 100 MW solar power project. This landmark initiative aims to accelerate the country’s transition to renewable energy, strengthen energy security, and reduce electricity costs while supporting economic recovery. The project is expected to generate approximately 220 GWh of clean electricity annually, contributing to Sri Lanka’s target of achieving 50–70% renewable energy in its power mix by 2030. It will also enhance grid reliability and create over 3,000 jobs across construction, technical, and operational sectors. The IFC is investing up to US$18 million through a local currency loan, with additional support to improve engineering, maintenance, sustainability, and grid resilience capabilities. Aligned with the World Bank Group’s broader energy strategy, the project will help reduce reliance on imported fuel and promote long-term infrastructure development. It complements ongoing initiatives to strengthen transmission systems and institutional capacity, positioning Sri Lanka to expand solar power and future battery storage solutions while building a more resilient and cost-effective energy sector.
