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Another 300MW power plant was also planned in Kerawalapitiya, he said.
"We are now working to introduce LNG to the country," he said. "We think by 2014 we will be able to do it."
He said the floating terminal to be located in Kerawalapitiya, north of Colombo has been proposed by Lanka Transformer Ltd, an associate company of state-run Ceylon Electricity Board, which is partly owned by private investors.
Several feasibility studies have found that the cost of the terminal makes LNG uneconomical and the fuel is not included in the grid operator's long term generation plan.
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However a more recent feasibility study has found that LNG could be justified under certain conditions, industry analysts say.
A floating storage and regassification unit (FSRU) costs less than a land based terminal. Minister Ranawaka declined to reveal the estimated cost of the terminal saying LTL's financial proposal was still being evaluated.
LNG is also cleaner than heavy fuel or diesel.
Minist