Sri Lanka awards $4.3mn Kolonnawa grid battery contract to Ceylex-Xingneng JV

ECONOMYNEXT — Sri Lanka’s Cabinet has approved awarding a multi-currency contract to a joint venture between Ceylex Engineering (Pvt) Ltd and Xingneng Electric Power Construction Co Ltd to upgrade the Kolonnawa Grid Substation for the island’s first utility-scale battery energy storage facility.

The procurement covers the development of a 100 MW/100 MWh Battery Energy Storage System (BESS) designed to stabilize the power grid as more renewable power is integrated.

“In alignment with long-term electricity generation expansion plans, it is proposed to establish Sri Lanka’s first utility-scale Battery Energy Storage System (BESS) at the Kolonnawa Grid Substation,” minister Nalinda Jayatissa said.

The total contract value, excluding taxes, is set at 1.27 million US dollars, 2.61 million euros, and 555.13 million Sri Lankan rupees.

The project forms a key part of the Asian Development Bank-funded plan to strengthen the national power network and add more renewable energy to the island’s electricity mix.

Initial approval to upgrade the substation under a renewable integration project funded by the Asian Development Bank (ADB) was granted on September 2, 2024.

Following that decision, the government invited international competitive bids to select a contractor for the project, drawing interest from four international bidders.

A High-Level Procurement Committee subsequently evaluated the submissions and recommended the Ceylex-Xingneng consortium as the substantially responsive bidder. (Colombo/Nov03/2026)