The state-owned Ceylon Electricity Board (CEB) is hoping that by expanding capacity at existing sites it would be able to buy power at a slightly lower rate than from greenfield projects.
Seneviratne says the CEB is looking for the cheapest suppliers who are expected to use furnace oil burning plants.
By July-August 2008 a 200MW gas turbine stage of a 300MW combined cycle plant in Kerawalapitiya, just north of Colombo, is scheduled to come on stream.
Its 100MW steam stage is expected to be connected a year later.
However uncertainty remains over when a Chinese funded coal plant in Puttalam would be completed, though it is hoped that it would be finished by 2011 or 2012.
A 150MW hydro plant in Upper Kotmale in the hill country is also expected to completed around that time.
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