The construction work of Sri Lanka's largest coal-fired power plant commenced Monday in the island country's northwestern Puttalam area.

President Mahinda Rajapakse said that after the completion of the Norochchole Power Plant, about 130 km north of the capital Colombo, the cost for electricity in the country will be reduced.

The President conveyed his gratitude towards the Chinese government for its massive contribution in making the project a reality.

The power plant will contribute 900 Mega Watts (MW) to the national grid after completion by 2015. The first phase of the plant with the capacity of 300 MW is expected to be completed by 2011.

The Chinese government has contributed with a financial aid of 455 million U.S. dollars under a long-term repayment loan scheme.

Ye Dabo, the Chinese ambassador to Sri Lanka, said he looked forward to the early completion and operation of the project which "will definitely ease the electricity shortage of the country, boost the national economy and benefit its people."

Ye said China is always ready to help Sri Lanka within its capability.

He expressed confidence that the CMEC (China National Machinery and Equipment Import and Export Corporation), a leading company in building coal power plant, will make every effort to complete the project as scheduled with high standard and quality.