Sri Lanka is expected to gain a major boost to its power sector with the completion of the Norochcholai coal power project, already under construction.

The second and third phases of the Norochcholai coal power project, which is aimed at generating over 600MW will commence soon with financial assistance of the Chinese Government.

The Sri Lankan government yesterday entered into an agreement with the Chinese Government on funding the second and third phases of the Norochcholai coal power project. The Ceylon Electricity Board Chairman E.A.S.K. Edirisinghe and President of the China National Machinery and Equipment Import and Export Corporation (CMEC) Jia Zhiqiang signed the agreement on behalf of the two Governments in the presence of President Mahinda Rajapaksa, Power and Energy Minister John Seneviratne and Chinese Ambassador in Sri Lanka Yang Xiuping.

Norachachalai Coal Power project is one of the massive projects launched by the Sri Lankan government recently. The total investment for phase II and phase III of the project will be US$ 891. This loan is repayable in 20 years at two percent interest.

“The first, second and third phases of the project are expected to generate over 50 percent of the country’s power requirement and the power sector will see massive development with the completion of this project”, said Power and Energy Minister John Seneviratne.