Mar 27, Colombo: HSBC yesterday announced that it has arranged a 236 million US dollar loan facility to a local firm to build a thermal power plant at Kerawalapitiya in Wattala, a suburb of capital Colombo.

According to the global banking giant, the 14 year loan from US and European credit agencies has set a benchmark by being the longest tenure achieved in Sri Lanka for a foreign debt. The government of Sri Lanka has guaranteed the loan, it said.

The Kerawalapitiya power plant is intended to generate 300 megawatts to the national grid. The project worth of 280 million US dollars is to be undertaken by West Coast Power Private Limited under aegis of Ceylon Electricity Board (CEB), Employee Provident Fund and Private Sector Retirement Fund.