Cabinet spokesman Rajitha Senaratne said that President Maithripala Sirisena had taken the decision based on the harm coal power plants cause to the environment.
Senaratne however said that existing coal power plants will continue to operate and will not be decommissioned.
The Government had yesterday informed the Supreme Court that the proposed coal power plant in Sampur will not be constructed.
Moves to construct the coal power plant in Sampur with Indian assistance, drew strong objections from environmentalists and the public in the area.
Environmentalists had filed a fundamental rights application in the Supreme Court objecting to the use of coal as a source of energy generation and in particular against the proposed Sampur Coal Power Plant.
The grievances highlighted in the petition included discrepancies in the environment assessment report as well as the long term environmental and health impacts that a coal power plant will invariably cause.
Senaratne said that the decision to cancel the Sampur coal power project had been discussed with the Indian Government. (Colombo Gazette)