Recognition of projects under the 'Strategic Development Project' law entitles them to a range of concessions like fast-track project approvals and exemptions from a range of taxes and duties.
The projects are considered to be of a strategic nature that will have a significant impact on the island's economic growth.
The Sampur power plant, in the eastern port of Trincomalee, is to be recognised as a 'Strategic Development Project' under an investment law on a proposal made by Basil Rajapaksa, Minister of Economic Development, a statement said.
The power project with plants of 250 MW each is to be built by a joint venture between the Ceylon Electricity Board state power utility and India's National Thermal Power Corporation at a total investment of around 500 million US dollars.
It will meet increased demand for electricity in the Eastern Province which is recovering from the effects of a 30-year ethnic war that ended in 2009.