Sri Lankan government has decided to go ahead with the setting up of an LNG terminal near Colombo with Indian and Japanese companies. The agreement regarding it was finalized during External affairs minister Sushma Swaraj's visit to Sri Lanka last week and Sri Lankan Government has issued a Letter of Intent for setting up of the venture. It is part of MoU for cooperation in economic projects signed between the two countries this year. <br/><br/>Indian company Petro net LNG Ltd will form the joint venture meant to provide re-gasified natural gas to various power plants, domestic and transport sectors in Sri Lanka. The project is expected to be developed in two years after completion of initial formalities. The company has also shown interest in setting up a 500 Megawatt LNG power plant in Sri Lanka, discussions for which are in advanced stage.