By The Pulseline News Desk
Sri Lanka’s Cabinet has approved two major power infrastructure contracts involving a joint venture between local engineering firm Ceylex Engineering (Pvt) Ltd and China’s Xingneng Electric Power Construction Co Ltd, covering the development of transmission infrastructure in the Eastern Province and the establishment of the country’s first utility-scale battery energy storage system.
The contracts form part of broader efforts to strengthen the national electricity transmission network, improve grid stability and facilitate the integration of renewable energy into Sri Lanka’s power system.
The first contract covers the Sampur–Kappalthurai Transmission Infrastructure Development Project, which is being implemented with financial assistance from the Asian Infrastructure Investment Bank (AIIB).
The contract has been awarded for US$4.15 million, €0.78 million and Rs.1,096.08 million, excluding applicable taxes.
Cabinet Spokesman, Minister Nalinda Jayatissa has said the project would strengthen the transmission system and improve the overall efficiency of the national electricity grid.
The work includes constructing a new 220(132)/33 kV grid substation in Sampur and expanding the existing 220(132)/33 kV substation in Kappalthurai.
The project has received initial Cabinet approval on December 15, 2025, and was subsequently opened to international competitive bidding. Six bids were received, with the Ceylex Engineering-Xingneng joint venture selected as the lowest substantially responsive bidder.
Kolonnawa battery storage project
Separately, the Cabinet has approved awarding another contract to the same joint venture for upgrading the Kolonnawa Grid Substation to accommodate Sri Lanka’s first utility-scale Battery Energy Storage System (BESS).
The project involves establishing a 100 MW/100 MWh battery storage facility aimed at improving grid stability and supporting the integration of increasing amounts of renewable electricity.
The contract has been awarded for US$1.27 million, €2.61 million and Rs.555.13 million, excluding applicable taxes.
Minister Jayatissa has said the proposed battery storage facility was being developed in line with the country’s long-term electricity generation expansion plans.
The initiative forms part of a renewable energy integration programme funded by the Asian Development Bank (ADB).
Initial Cabinet approval for upgrading the Kolonnawa substation under the programme was granted on September 2, 2024. Following the approval, the Government has invited international competitive bids, attracting four bidders.
A High-Level Procurement Committee has subsequently evaluated the submissions and recommended the Ceylex Engineering-Xingneng joint venture as the substantially responsive bidder.
Strengthening renewable energy integration
The two projects come as Sri Lanka seeks to expand renewable energy generation while addressing challenges associated with integrating intermittent sources such as solar and wind power into the national grid.
Battery energy storage systems are expected to play an increasingly important role in balancing electricity supply and demand, storing excess renewable electricity and releasing it when required.
The development of transmission infrastructure in Sampur and Kappalthurai is also expected to improve the capacity of the Eastern Province’s electricity network to accommodate future power generation and distribution requirements.
Together, the projects represent further investments in strengthening Sri Lanka’s electricity infrastructure as the country pursues its renewable energy expansion targets and seeks to improve the reliability and efficiency of the national power system.
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