Sahasdhanavi power project advances with US$291 million investment
Daily Mirror: The Board of Investment (BOI) of Sri Lanka has registered its Agreement with Sahasdhanavi Limited for the development of a 350 MW combined cycle power plant at the Kerawalapitiya Industrial Zone.
The Agreement was registered on August 13, 2026, under Section 17(2) of the BOI of Sri Lanka Law No. 4 of 1978.
The project involves an envisaged investment of US$291.19 million, comprising US$90 million in share capital, US$196.19 million in loan capital and US$5 million from other sources. The investment will cover fixed assets and working capital.
The plant, to be developed on a Build-Own-Operate-Transfer (BOOT) basis, will supply electricity directly to the national grid and is expected to create 1,147 employment opportunities once it reaches full operational capacity.
The project will be implemented in two phases and is scheduled for completion within 42 months of the Agreement date.
Phase I will consist of a 243 MW gas turbine when operated on liquefied natural gas (LNG), with a generating capacity of 213 MW when operated on diesel. Phase II will comprise a 107 MW steam turbine using LNG, or 105 MW when operating on diesel.
The plant will initially operate on diesel, with provision to switch to Regasified Liquefied Natural Gas (RLNG) once the required national infrastructure and supply arrangements are established.
The transition to RLNG is expected to support a cleaner fuel mix while enhancing the reliability of electricity generation and meeting growing demand as Sri Lanka diversifies its energy sector.
The project will further strengthen Kerawalapitiya’s position as a major power generation hub. Along with the 350 MW Sobadhanavi and 300 MW Yugadhanavi combined cycle power plants, the area’s total generation capacity is expected to reach approximately 1,000 MW.
The project is also expected to generate wider economic activity through construction, engineering, procurement, manufacturing, logistics and related services, while providing opportunities to develop the technical and professional skills of the local workforce.
OSL take:
Sri Lanka’s expanding power demand and economic recovery are creating growing business/investment opportunities for foreign businesses/investors in the country’s clean and sustainable energy sector. The latest investment is the US$291.19 million, 350 MW combined cycle power plant being developed by Sahasdhanavi Limited in Kerawalapitiya. The plant will initially operate on diesel, with plans to transition to Regasified Liquefied Natural Gas (RLNG) once the required infrastructure is established. The project highlights the increasing investment potential in Sri Lanka’s energy sector as the country seeks to improve power generation capacity, strengthen energy security and move towards a cleaner fuel mix. With electricity demand expected to rise alongside economic activity, business/investment opportunities are emerging not only in power generation but also in renewable energy, LNG infrastructure, energy storage, grid development and energy-efficiency technologies. Sri Lanka’s push to diversify its energy mix is therefore positioning the power sector as an increasingly attractive area for foreign direct investment and technology partnerships.
| Article Code : | VBS/AT/20260914Z_1 |