Japanese industrial giant Sojitz Corporation has bought over 90 percent of the shares of Kelanitissa Private Limited, which owns the 163MW Kelanitissa fossil fuel power plant.

According to foreign media reports, Sojitz has paid a sum between US $ 16.3- 24.5 million to purchase the stake from the American power company AES Corporation. 

The Ceylon Electricity Board’s (CEB) long-term power generation plan stipulates that the power plant’s power purchase agreement will not be renewed in 2023, and the CEB will run it from 
2023-2033.

CEB will continue to retire gas and diesel power plants over the next 20 years, including 8 of the 6.13MW plants of Asia Power, in which Sojitz also has shares in, by 2018.CEB plans to retire around 1,200 MW of gas and diesel powered turbines in the next 20 years due to high cost, and will instead opt to depend on coal for the main power needs, with the support from renewable energy sources. Many companies have already sold off or written off their diesel power plants.