Cabinet spokesman and Health Minister Rajitha Senarathne told reporters that the project, which was being reassessed for its environmental feasibility by the new government, has received approval.
“We are satisfied with the environmental feasibility study done by a local university. We may require a second feasibility for the second phase of construction, but there is more time to get that done. So, the cabinet has approved the project to continue,” Xinhua news agency quoted him as saying.
The project was initiated by former president Mahinda Rajapaksa, who was defeated in presidential election early last month.
The new government had insisted it wanted to re-evaluate the project over environmental fears.