Wednesday Sep 09, 2026
Wednesday Sep 09, 2026
Wednesday, 9 September 2026 00:25 - - {{hitsCtrl.values.hits}}
The Board of Investment of Sri Lanka (BOI) has certified the registration of its agreement with Sahasdhanavi Ltd., paving the way for the development of a 350 MW RLNG/diesel-operable combined-cycle power plant at the Kerawalapitiya Industrial Zone.
The BOI Agreement was registered on 13 August 2026 under Section 17(2) of the BOI of Sri Lanka Law No. 4 of 1978, covering an envisaged investment of $ 291.19 million in the power generation project.
The investment comprises $ 90 million in share capital, $ 196.19 million in loan capital and $ 5 million from other sources, with funds to be deployed towards fixed assets and working capital.
The project is being developed on a Build-Own-Operate-Transfer (BOOT) basis and is expected to supply electricity directly to the national grid.
It will be implemented in two phases. Phase I will comprise a gas turbine with a generating capacity of 243 MW using LNG, or 213 MW using diesel, while Phase II will add a steam turbine capable of generating 107 MW using LNG, or 105 MW using diesel.
The project is scheduled for completion within 42 months of the Agreement date.
Initially, the plant will operate on diesel, with the ability to transition to re-gasified liquefied natural gas (RLNG) once the required national infrastructure and gas supply arrangements are in place.
The transition is expected to support a cleaner fuel mix while improving the reliability of electricity supply and providing additional generation capacity as demand grows and Sri Lanka diversifies its energy mix.
The project is also expected to generate 1,147 new employment opportunities once it reaches full operational capacity. In addition, construction and subsequent operations are expected to create demand for engineering, procurement, logistics, manufacturing and other related services.
The Sahasdhanavi plant will further consolidate Kerawalapitiya as a major electricity generation hub.
Together with the 350 MW Sobadhanavi Combined Cycle Power Plant and the 300 MW Yugadhanavi Combined Cycle Power Plant, the three facilities are expected to give the area combined generation capacity of approximately 1,000 MW.
The development comes as Sri Lanka seeks to strengthen generation capacity and improve the resilience of its electricity supply while gradually moving towards greater use of natural gas and other cleaner energy sources.
The BOI said the project demonstrates continued investor interest in strategic infrastructure and the energy sector, while Sahasdhanavi Ltd., thanked stakeholders for their support in advancing the project.
