Cabinet gives the green light for two coal plants and two-LNG plants

Sri Lanka's ministerial cabinet had approved two 300 Megawatt coal-fired plants as an extension to an existing Norochcholai complex, the state information office said.  The firm has also given the go-ahead as a joint venture between the Ceylon Electricity Board, Japan and India for a 300MW liquefied natural gas plant in Kerawalapitiya. A 300MW also approved for the construction with support from the Asian Development Bank.

Cabinet spokesman Bandula Gunewardene has stated that the plants are in line with an existing generation plan. The cabinet also asked for the construction of solar plants planned with an Indian $100 million credit. The CEB has also proposed to speed up the utility's planned hydro and renewable plants.

OSL Take: The development program carried out by the government of Sri Lanka, covering all critical economic sectors island wide, has resulted in the expansion of business/investment opportunities in the country. However, the most significant number of business/investment opportunities have come forward in Sri Lanka’s power and energy sector.

Opportunities in the power industry include wind and solar power plants, LNG power plants, auto-diesel power plants to dual fuel (liquid natural gas) plants, mini-hydropower plants, domestic solar systems, wind power, electrical meters and switches, power transmission and control systems, and power wires.

SLSEA actively promotes alternatives for renewable energy, and statistics show a steadily growing contribution to renewable energy. Because of its unique location, Sri Lanka has vast wind energy resources. There are presently 11 wind power plants linked to the national grid. USAID has evaluated Sri Lanka's wind and solar potential.

The looming power crisis in Sri Lanka has resulted in the opening up of many business/investment opportunities in the country’s power and energy sector. The government of Sri Lanka is continuously exploring solutions to address the rapidly increasing demand for electricity. The government is also focusing on sustainable energy generation methods.

Therefore, Sri Lanka’s power and energy sector is a hotbed for business/investment opportunities. Foreign businesses/investors could, therefore, explore business opportunities in Sri Lanka’s power and energy sector or also looking at forming partnerships/joint ventures with local companies to bid for projects in the pipeline. The government of Sri Lanka is continuously exploring solutions to address the rapidly increasing demand for electricity.  

Contemplating the need to modernize the country’s laws to attract more foreign investments to Sri Lanka is a positive sign for international businesses/investors looking at doing business with the state. Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements, as well as trade concessions enjoyed by the state, have made it an attractive business destination in the South Asian region.

VBS/AT/20200303/Z_TB2