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In a large, 2-inch deep skillet with a lid, heat oil. Add chicken, onions, and bell peppers, and saute 1 minute.
Sprinkle with 1 tablespoon curry powder and ½ teaspoon salt and saute about 1 minute longer til golden brown on the outside. (Chicken will not be cooked through yet) Transfer to a dish and cover to keep warm.
In the same pan, combine rice, broth, water, salt, sugar, and remaining 2 teaspoons curry powder. Stir well.
Bring to a boil then reduce to high simmer. Cover and cook for 15 minutes.
Uncover, return chicken to the pan (do not stir it in, just arrange it in a single layer on top of the rice so it isn't all heaped in the center of the pan). Cover and cook 10 minutes longer.
Uncover, stir in coconut milk and salt to taste. Garnish with fresh herbs if desired and serve.