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17 August 2007 - Ceylon Electricity Board (CEB) is to sign a Memorandum of Understanding (MoU) with Mitsubishi Cooperation to undertake, with immediate effect, a feasibility study for a 300 MW combined power plant in Kerawalapitiya reports ColomboPage, a Sri Lankan online newspaper.

The Sri Lankan government has granted its approval to a MoU, which was submitted by the minister of power and energy, W.D.J. Seneviratne, authorizing the CEB to proceed.

Neither the CEB nor the government will bear any of the costs associated with the study, which is scheduled to be finished in six months. The CEB will provide all facilities, including technical inputs.

The CEB's Long Term Generation Expansion Plan for 2006-2020 envisages that 545 MW of additional thermal power will be added to the grid during the period of 2008-2009. According to the government, 200 MW of power will to be added to the grid by 2008 and 345 MW by 2009 to prevent a looming power crisis.

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