The hydro power plant to be constructed at Kithulgala, about 90 km north-east of Colombo, will add 35 megawatt to the national grid.  Once the project is completed it expects to generate 137 GWh of electrical energy annually.

The project which is a run-of-river type project planned to be built on the Kelani River is the last of the series of hydro power plants of Laxapana and it has been stalled for 25 years due to environmental concerns.

The 24-meter high and 114-meter long dam will be constructed across the Kelani River in Kithulgala in the Nuwara Eliya District and the power plant will be established in Yatiyanthota in Kegalle district. The tunnel of the complex will be 3.5 kilometers long and 5.4 meters in diameter.

The required funding to commence construction work of the project has been obtained from the Industrial and Commercial Bank of China (ICBC) and the required insurance coverage for the said loan has been taken from the  China Export and Credit Insurance Corporation.

Accordingly, the Cabinet of the Ministers has approved the proposal made by the Minister of Power and Energy to accept the above Insurance Corporation as a combined lender of the loan.