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Sri Lanka Expects First Coal Power Plant to Cut Generation Costs

Sri Lanka’s first coal-fired power plant, scheduled to be opened today by President Mahinda Rajapaksa, is expected to generate cheaper electricity as the economy expands after a three-decade civil war.

The plant at Norocholai, north of the capital Colombo, was built with a $450 million loan from the Export-Import Bank of China and will add 300 megawatts to the national grid, the government said on its website. The second phase is scheduled to be completed by 2014 at a cost of $891 million and will have a capacity of 600 megawatts, it said.