Japan has loaned US$245M to Sri Lanka for the construction of a 150MW hydro station on the Upper Kotmale river.

The prospect of peace in Sri Lanka has brought a new urgency to the construction of the 80MW Kukule Ganga hydro plant, the only hydro station under construction in the country.

Following the Norwegian-brokered truce on 23 February 2002, there has been a marked rise in demand that has compounded the island’s power shortage. The government is now advancing medium-term plans to buy 200MW of generating capacity this year.