Sri Lanka’s cabinet has approved a proposal to issue letters of intent to build two LNG power plants in the island.
These two plants, which will generate 500MW each, is to be carried out by India and Japan, a cabinet decision said without revealing details.
In April this year, Sri Lanka and India signed an MoU on economic co-operation in the presence of Indian Prime Minister Narendra Modi and Sri Lankan counterpart Ranil Wickremesinghe in New Delhi.
As per Indian media reports, the MoU proposed Indian investment in setting up of a LNG power plant and terminal, among other proposals.
A joint venture between India, Japan and Sri Lanka is to be formed to carry out the project.
Sri Lanka cancelled a 500MW coal power plant to be built by India in Trincomalee citing environmental and other issues and agreed to build a LNG plant with the same capacity.
Source Link – Lanka Business Online