An agreement was signed yesterday between Sri Lanka and India to commence the construction of the Sampoor Coal power station within a year.
The new power station will contribute a power capacity of 500 Mega Watts to the National Grid.
The new coal power station which will pave the way to cater to the rising electricity demand in the country in keeping with the rapid development is expected to be completed by 2018.
The total cost of this project is estimated at 512 million dollars.
The agreement for the proposed Sampoor coal power station in Trincomalee was signed at the Presidential Secretariat in Colombo.
The Ceylon Electricity Board signed the agreement on behalf of Sri Lanka while the National Thermal power Corporation signed on behalf of India.
The initial discussions regarding the commencement of the Sampoor Coal power project was initiated during the visit of President Mahinda Rajapaksa to India in 2005.