- it has been observed that power sector capacity has to be enhanced to cater to demand of the emerging economic activities. Accordingly, the Ceylon Electricity Board intends to implement the following 2 projects:

* Project of 'Construction of Four Grid Substations and Related Transmission Line' - it is expected to add 4 new sub-stations under this project in the central region at Nawalapitiya, Ragala, Wewalwatte and Maliboda at an estimated cost of Euro 38 mn. These 4 sub-stations will add 220 MW of additional capacity to the National grid; and

* Project of 'Green Power Development and Energy Efficiency Improvement Investment Program' - this programme will be implemented by the Government with financial assistance from the Asian Development Bank (ADB) and an Agency from France. A loan of Euro 22 mn. is to be provided to construct and rehabilitate 3 sub-stations at Kesbawa, Kalutara and Old Anuradhapura.

The proposal made by H.E. the President, in his capacity as the Minister of Finance and Planning, to proceed with the activities relating to loan arrangements, was approved by the Cabinet.