Govt. begins ADB-backed $328 m power grid modernisation project

Saturday, 15 August 2026 00:02 -     - {{hitsCtrl.values.hits}}

Energy Minister Anura Karunathilaka

 

A $328.25 million power system strengthening project has commenced aimed at modernising the national transmission network and improving the integration of renewable energy into the electricity grid.

The Power System Strengthening and Renewable Energy Integration Project (PSSREIP) was launched yesterday with the commencement of construction of the Homagama 132/33 kV Grid Substation under the patronage of Energy Minister Anura Karunathilaka.

The project is financed through concessional funding from the Asian Development Bank (ADB) and will be implemented through Lanka Electricity Company (LECO) and the Government-owned successor companies of the Ceylon Electricity Board — National Transmission Network Services Provider (NTNSP) and National System Operator (NSO).

The new Homagama Grid Substation is expected to address rising electricity demand from rapid industrial and commercial development in Homagama, Kottawa, Malabe and Horana. It will also help ease the load on the existing Pannipitiya and Kosgama substations serving these areas.

A second 132/33 kV Grid Substation will be constructed in Negombo under Package 1B of the project to support increasing electricity demand from tourism and industrial activity in the region, while providing additional capacity for the expansion of Bandaranaike International Airport and the proposed Aero City project.

The project is expected to improve power system reliability, strengthen security of supply and enhance operational stability, while creating capacity for future renewable energy generation to be connected to the national grid.

The Homagama and Negombo substations are scheduled for completion within two years.

NTNSP is also planning further transmission infrastructure investments, including a 220/33 kV Grid Substation in Mirigama, a 132/33 kV Grid Substation in Peliyagoda and a 78-kilometre 132 kV double-circuit transmission line connecting Hambantota and Matara.

Additional developments include 132 kV substations, sections of 220 kV transmission lines with LILO (Line-In Line-Out) connections, and a 2-kilometre underground 132 kV transmission line linking the Kelaniya-Kotugoda transmission line to the Peliyagoda Grid Substation.

Construction of a 220 kV underground transmission cable system connecting Kerawalapitiya and the Colombo Port also commenced last week, as part of efforts to strengthen electricity infrastructure and support future economic expansion.

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