Sri Lanka and coal

The U.S. Geological Survey lists Sri Lanka as having no domestic coal production. The International Energy Agency stated that in 2007 approximately 60% of electricity production was from oil-fired plants with the bulk of the rest from hydro capacity. Very minor amounts of electricity were generated from wind and solar photo-voltaic panels.

Sampur power station
Sampur power station, a 500 megawatt (MW) coal-fired power station which has been proposed to be constructed at Sampur, Trincomalee in Sri Lanka. The project would be developed through a joint venture company between the the National Thermal Power Corporation (NTPC) and the Ceylon Electricity Board."

Lakvijaya Power Plant
Lakvijaya Power Plant is a proposed 900 megawatt coal-fired power station in the Puttalam District of the Northwestern Province in Sri Lanka. It would be Sri Lanka's first coal power plant. The first phase of the plant is to inject 300 MW to the main grid by 2011, with the second phase injecting another 600MW by 2013. The Chinese government thorough the Export-Import Bank of China has provided US$ 455 million for the Lakvijaya plant. The delivery of the first shipment of 65,500 MT of coal at a cost of US$7 million from Indonesia was expected in the first week of November 2010.

It was announced in late March 2011 that Sri Lanka’s first coal power plant Lakvijaya, at Norochcholai, in the Puttalam District began Phase One of its operation. Under Phase One of the project, 300 MW, which amounts to 17% of the national power requirement of the country, was be added to the country's National Grid.

In August 2011, the Export-Import Bank of China offered an $891 million loan to build the second phase of 600 MW.

Southern province power station mooted
In March it was reported that the Ceylon Electricity Board (CEB) was planning a 500 megawatt coal-fired power station at Ahuruwella near Induruwa on the south west coast with assistance from Japan. The news report stated that "the plant would use eco-friendly technology and funding is expected from Japan. Industry sources say funding has been requested from Japan but no decision has been made." In May 2013 the Chairman of the CEB, W.P. Ganegala, announced that a 500 megawatt coal-fired power station costing approximately $US500 million would be established in the Southern Province at a location yet to be decided. However, this seems likely to be referring to the Ahuruwella proposal. The Sunday Times stated that while surveys were underway a location had not been selected. Ganegala stated that during a visit to Japan by Sri Lankan President Mahinda Rajapaksa in March 2013 the Japanese government had offered to assit with the project. Ganegala stated that it was expected that work on the plant would begin in late 2013 and take 18 months.

Coal transport
Sri Lanka has signed a $450 million deal with China Merchants Holdings and Sri Lanka's Aitken Spence to boost Sri Lanka Colombo port's cargo-handling capacity.

China has also lent $400 million for the first phase of the proposed Hambantota Port.

Relations with China
China was Sri Lanka's largest lender in 2009 and 2010, giving $1.2 billion and $821 million respectively. In 2009, that figure accounted for 54 percent of total foreign loans, and 25 percent in 2010. In the first six months of 2011, trade between China and Sri Lanka was worth $1.28 billion; only $68 million of that was exports from Sri Lanka to China.

China Development Bank Corporation has agreed to provide $1.5 billion by 2015 for construction of roads, bridges, power plants and water and irrigation schemes in Sri Lanka. China's Exim Bank has committed $102.5 million for Sri Lanka to buy 13 new diesel engines for its railways. The engines will come from Chinese manufacturers.

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