As AIIB celebrates its 10th anniversary, few partnerships more clearly reflect AIIB’s mission to finance tomorrow’s infrastructure with sustainability at its core than its work in Sri Lanka.
Since commencing operations in 2016, the Asian Infrastructure Investment Bank (AIIB) has grown into an international organization with over 100 members and a pillar of the global development landscape.
The Beijing-based multilateral development bank has invested more than US$64 billion in 338 projects in 39 economies. As well as focusing on connectivity, technology enablement, renewable energy and digital infrastructure, the bank has expanded its commitment to cross-border climate risk and biodiversity protection in recent years, supporting green projects with more than half of its total lending.
The Bank’s founding partnership with Sri Lanka is a model for how 21st century development banks can work with member banks to build resilience to climate change, modernize infrastructure and accelerate social and economic recovery.
From recovery to resilience
Since the beginning of the partnership, AIIB has approved over $530 million in financing to support Sri Lanka in the areas of energy, urban renewal and disaster resilience.
AIIB’s projects in partnership with Sri Lanka support the country’s national strategy to accelerate the transition to renewable energy and climate-resilient infrastructure. Together, these efforts will strengthen long-term resilience to structural vulnerabilities and shocks, including geographic, climatic, and economic.
Since 2022, more than half of the Bank’s annual financing approvals have gone to climate-focused projects that support infrastructure that mitigates climate change and strengthens resilience to its impacts, while maximizing the benefits of nature and biodiversity conservation.
From vulnerability to preparedness: protecting lives and livelihoods
Among AIIB’s projects in Sri Lanka, the Landslide Vulnerability Reduction through Mitigation Measures project remains one of the most prominent. The plan, approved in 2019, aims to protect lives and critical assets in Sri Lanka’s central highlands, where steep slopes and heavy rainfall pose a constant threat of landslides.
The project aims to reduce landslide risk through the construction of retaining walls, slope stabilization and drainage systems and is expected to directly benefit more than 200 affected areas and 1 million residents.
The project has already protected important public institutions such as Kandy National Nursing College and Hospital and Kandy Women’s College, which previously faced closure during heavy rains due to safety risks.
“Just before the bank arrived to assist, a major landslide occurred. Fortunately, there were no casualties, but two buildings were severely damaged,” said Dr. Ilesha Fernando, director of the National Kandy Hospital. “We are really grateful to the AIIB for funding and giving us the opportunity to reduce landslide-prone areas within our school and create a safer area for our trainee nurses and doctors.”
The project also stabilized a vulnerable section of the main railway linking Kandy to surrounding areas. Railway officials say the work has reduced the risk of track damage and “slow breakdowns” caused by landslides that previously disrupted service for weeks.
NA Nanayakkara, assistant principal of a girls’ school in Kandy, said, “Before this project, we had to close the school due to heavy rains. Now, with the support of the project, we can continue with confidence and feel safer.”
By strengthening critical infrastructure and protecting essential public services, the project strengthens community resilience and protects the development interests of Sri Lanka’s most vulnerable regions. From hospitals and schools to vital transport links, AIIB’s support has enabled vital institutions to operate safely, especially as climate change becomes more acute.
Beyond mitigation: green growth and a digital future
AIIB’s aspirations extend beyond this. In talks with the Sri Lankan President earlier this month, AIIB leaders considered plans to strengthen the digital economy, build resilient green infrastructure, and invest in education and health as part of the country’s social infrastructure.
“Health and education are very important,” said AIIB Chairman Jin Likun. “We have demonstrated a willingness, adaptability and responsiveness to work with governments and the public to foster economic growth.”
“To accelerate the country’s transition to green energy, we plan to work with the government to convert gasoline- or diesel-powered buses to electric vehicles,” Jin said.
For now, the bank remains “focused on transportation, renewable energy, and power generation and transmission, prioritizing large-scale infrastructure projects, including a $52 million loan for the Kerawalapitiya-Port L Second Transmission Line Project. This is exemplified by the recently approved project, signed in 2025, which will connect Colombo’s power grid via a new 220 kilovolt (kV) underground cable, integrating and stabilizing renewable power. Transmission of electricity to meet increasing demand.
“This is AIIB’s first energy sector project in Sri Lanka and reflects our strong commitment to supporting the country’s power infrastructure and energy transition,” said Mr. Rajat Misra, Director, Public Sector Customers Department (Region 1), AIIB.
He further said, “By increasing grid stability and ensuring reliable electricity supply, this project will bring lasting economic and social benefits to Sri Lanka and strengthen the path towards sustainable growth and resilience.”
next 10 years
Over the past decade, the AIIB has supported member countries through times of challenge and change, helping them move from crisis response to long-term, sustainable growth. In countries like Sri Lanka, World Bank lending provides both stability and reliability and shows how development financing can adapt to the evolving needs of member countries.
As AIIB enters its 20th year, the bank increasingly positions itself not only as a financial institution but also as a catalyst for sustainable growth. From green energy corridors in Central Asia to urban resilience projects in Southeast Asia, the AIIB’s ambitions are clear. It’s about connecting economies, empowering communities and financing tomorrow’s infrastructure to withstand the pressures of climate change.
The Bank believes that infrastructure financed today will benefit communities and serve them for generations. AIIB’s next chapter promises even greater impact, innovation and inclusive growth across Asia and the rest of the world.