Sri Lanka to cancel Indian coal plant deal; proposes LNG instead

Last Modified: Tue Jun 14 2016 20:32:36 GMT+0530 (India Standard Time)
  • 500 MW
    Plans for a Indian-built coal-fired power plant to be constructed in Sri Lanka, at its strategic eastern port city of Trincomalee, was cancelled in mid May 2016. The two countries will instead opt for a liquefied natural gas (LNG) power plant, according to a Sri Lankan cabinet minister.
  • 10 years
    and more of opposition by the residents of Sampur, a village near Trincomalee, is seen as a catalyst to abandon plans and switch to LPG according to B.M.S. Batagoda, the energy ministry secretary.
  • $500 million
    Estimated cost for building the coal power plant project. Plans were finalised in 2011, when state-run Ceylon Electricity Board (CEB) and India's state-run National Thermal Power Corporation Ltd (NTPC) agreed to form a joint venture for its construction.
  • 1
    Coal-fired plants in Sri Lanka. The 900 MW capacity plant was built with a $1.4 billion loan from China in two phases. However, the Chinese plant has faced frequent repairs.