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Adani projects in Sri Lanka seen as “govt. to govt. kind of deals” – Foreign Minister Sabry
The Sri Lankan government sees the Adani projects in Sri Lanka as “government to government kind of deals”, Foreign Minister MUM Ali Sabry told The Hindu on Sunday in an interview with SUHASINI HAIDAR.
Minister Sabry told The Hindu that it was the Indian government that had identified the Adani group for infrastructure projects including Northern Sri Lanka wind power project.
Minister Sabry also told Haidar that the Sri Lankan government is “very confident” that Adani Ports, Airports and Energy companies have strong fundamentals despite the 140 billion U.S dollar drop in share values after the publication of a negative report by US short seller Hindenburg.
He said the Adani group has already begun investing in its projects, which also include the 700 million dollar Colombo West Container Port project.
“So, we are not panicking,” Sabry told The Hindu in an interview in New Delhi where he met with External Affairs Minister S. Jaishankar and participated in the MEA’s Raisina Dialogue conference.
Sabry said Sri Lanka is grateful for India’s assistance with the economic crisis, and hope for more Indian investment in the next phase of its economic recovery, once it is able to receive a $2.9 billion bailout package from the International Monetary Fund, scheduled to meet next month.
The Adani wind power project had come into controversy last year when the chairman of state-owned power entity Ceylon Electricity Board (CEB) MMC Ferdinando had told a parliamentary panel that it was granted on the basis of a request from Prime Minister Narendra Modi to then Sri Lankan President Gotabaya Rajapaksa. Ferdinando subsequently retracted his statement and resigned from the post.
Given below are some of the questions posed during the interview and the answers given:
Q: Are India’s projects in Trincomalee that have been pending since 2018 when the then Prime Minister Ranil Wickremesinghe had first signed a MoU, now been given an impetus?
A:Yes, I think there has been impetus all around. We have seen that Indian tourists are coming, investors are coming, and some of the big Indian companies have already started their projects on renewable energy, wind power as well as the port development. With the Trinco projects, those are in the pipeline and we do know that this is the time we have to materialise this promise given a long, long period of time ago.
Q: One of those big Indian companies is the Adani group. Are you confident that the Adani companies involved in the Colombo port terminal project and Northern SL Wind power project can complete these projects, given the troubles they’ve been in over the past month?
A:We are very, very confident that they will do it . This speculation on the stock market is not a new thing, this happens all over the world. So, we are not panicking at all. And we are very, very confident they will be able to complete the project. And this will become a precursor for much more investment to come from so many diverse investment institutions in India. So we are definitely not worried.
Q: One of the allegations was that it was the pressure from the Prime Minister’s Office in India that actually led to the wind power project being given to the Adani group. Do you think the Adani group comes with the confidence, the [backing] of the Prime Minister’s office and that’s why it gets these projects?
A:Not really. In our case, of course, we were keen on an Indian investor to come in, so who the Indian investor was for the Indian government and the authorities to decide and choose and send it to us. And then we will have our own feasibility and fact-finding, and if we are happy, we will take it. So that’s how it happens all over the world. So we are happy. And we have no complaint, so far, because they have been investing, they’re going on with the project. And they have been successful both in India and in the region. So why not? A big name like that comes in. And there are a lot of other countries and other companies could be envious of them. For us, there is absolutely nothing to worry [about], because it is a transparent process and a government-to-government kind of a project. And then of course G2G doesn’t mean that the government gets involved and is doing business, it means the government identifies the entities. So that is the process which had been followed in the Adani’s coming into Sri Lanka.
Q: So it’s seen as a government approved project. Even though they have lost $140 billion in market capitalisation, are you convinced these projects will be completed on time?
A:Yeah, no, the problem is that the stock market is a very vulnerable thing. Companies go up and down — Facebook has lost market capitalisation, [and] the big timers, particularly in the tech industry have lost. It goes up and down but doesn’t mean that the project is in trouble. They have the capital, they have the foundation, [and] these projects are ongoing. So people can have their own valuation, on speculation, on [the] growth potential and all those things…. Merely because [the] stock market goes down doesn’t mean that your project on the ground will get wiped out all of a sudden. That investment has come in. That’s what I heard from my investment ministers.
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‘IRIS Dena was Indian Navy guest, hit without warning’, Iran warns US of bitter regret
A day after a US submarine sunk an Iranian Navy warship off the coast of Sri Lanka, the Foreign Minister of Iran, Sayed Abbas Araghchi, has warned that the US would “pay bitterly” for targeting a ship in international waters, The Tribune has reported.
Araghchi posted on social media platform X on Thursday saying, “The US has perpetrated an atrocity at sea, 2,000 miles away from Iran’s shores.”
The frigate IRIS Dena, a guest of India’s Navy carrying almost 130 sailors, was struck in international waters without warning, said the Iran Foreign Minister, adding, “Mark my words: The US will come to bitterly regret the precedent it has set.”
US Secretary of War, Pete Hegseth, on Wednesday confirmed that a US submarine fired a torpedo and sank the Iranian Navy vessel IRIS Dena west of Sri Lanka.
In a way, the Iran and US-Israel conflict has reached close to the Indian coast. The strike today at sea was almost 4,000 kms away from Iran, significantly expanding the radius of war. Already, fearing Iranian missile strikes, several US warships have moved eastward towards India.
These ships are in international waters. India has denied that any US Navy assets were using Indian ports. The Iranian ship, hit on Wednesday, was returning after participating in the international fleet review and exercise Milan hosted by India at Visakhapatnam.
The Iranian ship went down with almost 130 sailors on board missing. The Sri Lankan Navy, acting on a distress call, rescued 32 of the Iranian sailors. Hegseth confirmed the act by the US forces, saying the ship was hit in the Indian Ocean, stating, “an Iranian warship that thought it was safe in international waters. .. Instead, it was sunk by a torpedo”.
Hegseth did not name the Iranian ship that was attacked. But earlier, the Sri Lankan Navy reported the distress call from IRIS Dena when it was some 40 kms west of Galle, located on the south-western part of the island country. On February 16, the Iranian ship had sailed into the port of Visakhapatnam, where seventy-four nations participated.
Warships from Australia, Japan, South Korea, Russia, and dozens of others were anchored alongside the now-sunk Iranian vessel. Iran’s Navy Commander, Rear Admiral Shahram Irani, held talks with India’s Chief of Naval Staff on strengthening maritime security cooperation.
The theme was “United through Oceans.” Notably, the US Navy was supposed to send the guided-missile destroyer USS Pinckney to the exercise Milan; however, the ship was diverted to Singapore on February 15. The US did not field its warship in Milan, which had ships from Russia and Iran.
The exercise ended on February 25. Three days later, on February 28, the United States and Israel launched Operation Epic Fury. The IRIS Dena was transiting home. This morning at 5:08 a.m. local time, the IRIS Dena issued a distress call. Sri Lanka’s Foreign Minister, Vijitha Herath, informed parliament that two navy vessels and an aircraft were deployed. Thirty crew members were rescued and admitted to Karapitiya Hospital in Galle.
The Straits Times reported 32 critically wounded survivors. Reuters reported 101 missing and 78 wounded. The Sri Lankan Navy spokesman said the operation was conducted in line with the International Convention on Maritime Search and Rescue.
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Risk of power cuts due to use of low-quality coal,PUCSL warns
The Public Utilities Commission of Sri Lanka (PUCSL) has warned of a possible risk of power cuts due to the use of inferior quality coal affecting generation capacity at the Lakvijaya Power Plant, according to a recent commission report.
The commission said the risk to the continuous electricity supply was assessed based on the peak demand forecast submitted by the Ceylon Electricity Board (CEB) for 2026.
According to the report, the analysis assumed that hydropower plants could contribute up to 1,300 MW to meet the night peak demand, while the Lakvijaya Power Plant (LVPS) would be able to contribute only up to 690 MW due to a capacity shortfall, assuming a 40 MW generation capacity reduction from each unit.
The PUCSL said the assessment was carried out taking into account the planned maintenance schedule submitted by the CEB. Under the schedule, Unit 1 of the Lakvijaya plant is due to undergo maintenance checks and repairs in June for a period of 25 days, while Unit 2 is scheduled for maintenance in July for another 25 days.
The report also noted that the 270 MW West Coast Power Plant is scheduled to undergo maintenance in April for 10 days, while the 150 MW Kelanitissa Combined Cycle Power Plant (KCCP 2) is expected to undergo maintenance during May, June and July.
Under normal conditions, the report said, there is a potential risk of a generation capacity shortage if electricity demand reaches 3,030 MW in April, 3,070 MW in June and 3,000 MW in July.
The highest recorded night peak demand so far in 2026 was 2,949 MW on February 25.
The PUCSL further warned that if one coal unit or any major power plant becomes unavailable from the existing generation mix, there would be a significant risk of a generation capacity shortage to meet the night peak demand, particularly during April, June and July.
Energy sector analysts said the use of substandard coal could further aggravate operational challenges at the Norochcholai plant, potentially affecting generation efficiency and reliability if corrective measures are not taken promptly.
By Ifham Nizam
News
Sajith demands clear statement from govt. about Iranian vessel sunk close to Galle and another located near Colombo port
Opposition and SJB Leader Sajith Premadasa yesterday demanded a “clear statement from the government regarding this, as well as on the Iranian ship that was attacked near Galle, the number of personnel involved, and other related details,” following the sinking of an Iranian naval vessel in waters off Sri Lanka.
Making a special statement in Parliament, Premadasa said that information had been received about another Iranian vessel in Sri Lanka’s maritime boundary near the Port of Colombo and urged the government to immediately clarify the situation.
Premadasa said the government should also issue a special statement regarding international media reports that the Iranian Navy ship IRIS Dena had been sunk in the Indian Ocean with a torpedo attack by a US submarine.
He said the Sri Lanka Navy had carried out a search and rescue mission following the incident, a move that the Opposition appreciated.
However, the government had not yet informed Parliament of the exact location of the attack, whether the incident occurred in Sri Lankan waters or what diplomatic measures had been taken in response, Premadasa said.
“It has been revealed via international media that the Iranian Navy ship ‘IRIS Dena’ was sunk following an attack by a US submarine in the Indian Ocean,” he said.
The Opposition Leader added that the failure of the government to brief Parliament on an incident of such magnitude was preventing Members of Parliament from properly carrying out their duties.
Premadasa said several international media outlets as well as US Secretary of War Pete Hegseth had confirmed that a torpedo had been launched from a US submarine targeting the Iranian naval vessel, although the government and the Defence Ministry had denied those reports.
“The government must make an official announcement in this regard,” he said.
Premadasa further told Parliament that information had also come to light about another Iranian ship currently within Sri Lankan territorial waters off the Colombo Port, stressing that the government must immediately clarify the matter.
by Saman Indrajith
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