The Board of Investment (BOI) of Sri Lanka has certified the registration of its Agreement with Sahasdhanavi Limited, advancing the company’s 350 MW RLNG/Diesel Operable Combined Cycle Power Plant at the Kerawalapitiya Industrial Zone. 

The Agreement was registered on 13 August 2026 in accordance with Section 17(2) of the BOI of Sri Lanka Law No. 4 of 1978, reaffirming the country's continued drive to attract high-value investment into strategic infrastructure and energy security.

The project represents a total envisaged investment of $ 291.19 million (m), comprising $ 90 m in share capital, $ 196.19 m in loan capital, and $ 5 m from other sources, to be deployed in fixed assets and working capital. Once the plant reaches full operational capacity, it is expected to generate 1,147 new employment opportunities.

Developed on a Build-Own-Operate-Transfer (BOOT) basis, the plant will supply electricity directly to the National Grid and will be implemented in two phases. Phase I comprises a gas turbine with a generating capacity of 243 MW using LNG (213 MW using diesel), while Phase II comprises a steam turbine with a capacity of 107 MW using LNG (105 MW using diesel). The project is scheduled for completion within 42 months of the Agreement date.

The plant will initially operate on diesel, with the capability to transition to Regasified Liquefied Natural Gas (RLNG) once the necessary national infrastructure and supply are in place.

The Sahasdhanavi project reinforces Kerawalapitiya’s position as one of Sri Lanka’s principal power generation hubs. Together with the 350 MW Sobadhanavi Combined Cycle Power Plant and the 300 MW Yugadhanavi Combined Cycle Power Plant, it will bring the area’s combined generation capacity to approximately 1,000 MW.