Under the terms of the joint venture, 30 percent of the project will be funded through equity and the balance through debt, a senior official with the CEB, told LBO.
National Thermal Power Corporation will conduct a feasibility study of the project, which is likely to take about six months, with land already identified.
National Thermal power Corp will act as consultants. A joint team has been set up to do a feasibility study and obtain environmental clearances, the official said.
The plant due to be completed by 2011, will burn about 2.5 million tonnes of coal a year which will is likely to be imported from Indonesia or Australia.
This project is the second coal power plant lined up for the island, with the first 300-megawatt plant to be constructed in Norachcholai, also by 2011.
Sri Lanka needs large,