The issue was solved.
1. I installed SSP version 1.19.8. by following the documentation for that version. Configured IdP and SP. Tested.
2. On v 1.19.8 IdP opened Federation tab, showed Metadata for IdP and copied dedicated URL to get the metadata xml.
3. Then on version 2.0.6 for IdP I opened saml20-idp-hosted.php and replaced
$metadata['urn:x-simplesamlphp:example-idp']
with
$metadata['https://{my-site-url}/simplesaml/saml2/idp/metadata.php']
It may be for those who lives inside simplesamlphp project it is obvious but for a newbie it has taken a couple of days to create a working project.
Nevertheless thank you all for creating simplesamlphp.
Vlad