Weerakkody told Reuters: “We do not want to hurt India. So President Sirisena in his visit has offered an LNG plant instead of the coal plant… This has been discussed at the highest level and there is consensus.”
Sri Lanka is trying to increase its power generating capacity after a recent blackout that was the worst in 20 years, according to government officials.
Plans for the now cancelled $500 million coal power plant were finalised in 2011, when state-run Ceylon Electricity Board (CEB) and India’s state-run National Thermal Power Corporation Ltd (NTPC) agreed to the joint venture. It is not yet clear how the new LNG power plant will be built.