Colombo, Sri Lanka – April 11, 2025 – The Ceylon Electricity Board (CEB) has officially signed a Power Purchase Agreement (PPA) with Sahasdanavi Limited for the construction, operation, and eventual transfer of the new Sahasdanavi Power Plant. This marks a significant step in Sri Lanka’s commitment to ensuring reliable and affordable electricity for both domestic and commercial users.
The 350 MW Sahasdanavi Combined Cycle Power Plant, approved by the Public Utilities Commission of Sri Lanka, will be built and operated by Sahasdanavi Limited, with full ownership scheduled to be handed over to the CEB after 25 years.
Construction is set to begin shortly, with the plant expected to become operational in open cycle mode within 30 months, supplying power to the national grid. It will then transition into full combined cycle operations within an additional 12 months.
Powered by regasified-liquefied natural gas (R-LNG), the plant will offer much-needed flexibility in electricity generation, especially during nighttime hours and low wind periods. This capacity is vital for maintaining grid stability, particularly as the country continues to expand its renewable energy sources like solar and wind.
The Sahasdanavi project is part of a broader energy strategy that includes converting existing diesel-powered plants such as Thousand Island to R-LNG by 2028. This transition is expected to cut fuel costs by nearly 50% and lead to a substantial reduction in harmful emissions.
This investment not only supports cleaner energy but also strengthens the reliability and sustainability of Sri Lanka’s national power supply, helping pave the way toward a more resilient energy future.
