An investigation was ordered at the highest levels of government on letters of intent (LOIs) issued to several developers by state-run Ceylon Electricity Board, effectively 'suspending' the projects, investors have said.

"It will be completed in 2 to 3 days," Dhammika Perera, chairman of the Board of Investment, Sri Lanka's investment promotion agency said.

The agency had given tax concessions to a number of renewable energy developers. Industry sources said a complaint had been made questioning the process through which LOIs were issued.

The CEB had issued letters of intent to at least five developers for 50MegaWatts, including two parties that had started construction, officials of the utility had said earlier.

Developers who set up plants below 10 MWs of capacity get a standardized power purchase agreement from CEB running into 15 years.