Sahasdhanavi Power Project Advances with BOI Agreement Registration, Backed by US$ 291.19 Million Investment and 1,147 New Jobs at Full Capacity

The Board of Investment (BOI) of Sri Lanka has certified the registration of its Agreement with Sahasdhanavi Limited, marking a major milestone in the development of the company’s 350 MW RLNG/Diesel Operable Combined Cycle Power Plant at the Kerawalapitiya Industrial Zone. The Agreement was registered on 13 August 2026 in accordance with Section 17(2) of the BOI of Sri Lanka Law No. 4 of 1978, reaffirming the country’s continued drive to attract high-value investment into strategic infrastructure and energy security.

The project represents a total envisaged investment of US$ 291.19 million, comprising US$ 90.00 million in share capital, US$ 196.19 million in loan capital, and US$ 5.00 million from other sources, to be deployed in fixed assets and working capital. Once the plant reaches full operational capacity, it is expected to generate 1,147 new employment opportunities, further reinforcing the Government of Sri Lanka’s commitment to channeling foreign and local investment into job creation and building the capabilities of the country’s energy sector workforce.

Developed on a Build-Own-Operate-Transfer (BOOT) basis, the plant will supply electricity directly to the National Grid and will be implemented in two phases. Phase I comprises a gas turbine with a generating capacity of 243 MW using LNG (213 MW using diesel), while Phase II comprises a steam turbine with a capacity of 107 MW using LNG (105 MW using diesel). The project is scheduled for completion within 42 months of the Agreement date.

The plant will initially operate on diesel, with the capability to transition to Regasified Liquefied Natural Gas (RLNG) once the necessary national infrastructure and supply are in place — a shift expected to support a cleaner-burning fuel mix, strengthen the reliability of Sri Lanka’s power supply, and support the country’s evolving electricity demand as the energy sector diversifies.

The Sahasdhanavi project reinforces Kerawalapitiya’s position as one of Sri Lanka’s principal power generation hubs. Together with the 350 MW Sobadhanavi Combined Cycle Power Plant and the 300 MW Yugadhanavi Combined Cycle Power Plant, it will bring the area’s combined generation capacity to approximately 1,000 MW, underscoring sustained investor confidence in Sri Lanka’s energy sector and paving the way for further investment into the country’s power generation capabilities.

Beyond electricity generation, the project is expected to generate wider economic value through construction, engineering, procurement, manufacturing, logistics and related services, while building the technical and professional expertise of the local workforce.

Sahasdhanavi Limited extended its appreciation to all stakeholders for their continued support and cooperation in advancing the project. The registration of the BOI Agreement marks a further step in the company’s contribution to a more secure, reliable, and future-ready power generation capacity for Sri Lanka.