June 30, Colombo: Sri Lanka government said that the electricity charges in the country would be reduced after the establishment of Norochcholai Coal Power Plant.

Speaking to the media at the occasion of signing the agreement to begin constructions of Phase II and III of the Norochcholai Coal Power Plant, Minister of Power and Energy W. D. J. Senaviratne said that the charges for generating power will certainly decrease with this project.

According to the minister 65 % of the electricity is generated with the use of diesel. As a result, Ceylon Electricity Board is incurring a loss of Rs. 1.50 for each unit generated, the Minister pointed out.

The Power and Energy Ministry expects to generate an electricity unit at a cost of 7 to 8 rupees with the use of coal.

The second Phase of the Norochcholai Coal Power Plant is scheduled to be completed by year 2012.