The Sri Lankan government has named the port of Trincomalee in the war-torn east of the country as preferred site for a coal-powered electricity plant.

Two thirds of Sri Lanka's electricity is generated from water and earlier this year a severe drought left the country without power for up to five hours a day.

The Sri Lankan government hopes electricity supply improvements will help boost the island's economy, devastated by a 19-year civil war which has killed 64,000 people.

Siting the plant in Trincomalee has been made possible by a permanent ceasefire signed in February between the government and the separatist Tamil Tigers.

Further talks to end the conflict are planned for June.

Seeking investment

The $1bn power plant was proposed several years ago but lack of funding and opposition from environmental groups delayed the project.

The government is now seeking investors for the plant.

Further funding may come from the Japanese government, which has been involved in similar projects before.

The government named Hambantota on the southern coast as its second choice of location and the western town of Norochcholai as its third choice - but opposition to the power plant was strong in this area.