News

Moves to kick-start Rs.15bn mega pipeline project comes under fire

Published

5 years ago

2020/12/13

Sahan Weerasooriya

Despite anticipated drop in fuel consumption for thermal energy

bY SURESH PERERA

With three major Liquefied Natural Gas (LNG) projects now on the cards coupled with the commissioning of the Mannar wind power plant, questions are being raised over ongoing moves to forge ahead with plans to build a mega Rs.15 billion cross-country oil pipeline when the long-term demand for thermal power is expected to drop drastically.

The renewed interest within some quarters with political blessings to implement the proposed pipeline project at such stupendous cost has raised eyebrows as the monthly consumption of 45,000 metric tons of fuel to generate costly thermal energy will no longer be necessary with LNG and wind power supplementing the country’s demand for power, industry officials said.

At a time Sri Lanka is facing a grave economic crisis due to the Covid-19 pandemic, what is the urgent need for a cross-country pipeline when there will be far less fuel imports in the long term?, they asked.

With a proposed solar power project at Siyabalanduwa also in blueprint stage, constructing a high cost pipeline at this juncture is as insensible as “watering outdoor plants when it’s raining”, and ultimately result in the project being rendered redundant with billions of rupees going down the drain, they opined.

In addition, bids have already been called to build a new pipeline to facilitate the transfer of jet fuel from the Muthurajawala tank farm to Katunayake at substantial cost. Under the circumstances, what’s the viability of investing on another project when alternate energy sources will make thermal power generation irrelevant in the long run, industry players further queried.

Even if the cross-country pipeline project begins tomorrow, it will take another four years for its completion, whereas the LNG plants will be operational within three years. With a lifespan of 25 years on the pipeline, the country will not be able to recover even the cost of the multi-billion rupee project, they asserted.

Sri Lanka has already signed three major LNG deals with the governments of China, India and Japan. While the proposed combined plants are expected to add 1,400MW to installed capacity, the transnational agreements will play a key role in mitigating unreliability in hydro power supply while bolstering foreign capital inflows.

Sri Lanka’s fuel consumption per day is 5,000 metric tons, of which 1,500 metric tons are channeled to generate thermal power. While the Sapugaskanda facility has the capacity to refine 2,000 metric tons of crude oil per day, the balance 1,500 metric tons are imported as refined oil.

Lanka IOC directly imports refined oil, which is stored and distributed by Ceylon Petroleum Storage Terminals Limited (CPSTL).

A tanker load of 40,000 metric tons of fuel can be discharged within 24 hours. With the anticipated drop in fuel consumption for thermal energy after the proposed entry of LNG into the energy market, the number of tankers can be also reduced with a substantial cost saving, industry officials said.

The cross-country project was first proposed during 2013-14 but was shelved with the construction of the Muthurajawala oil tank farm, which was augmented by a new oil pipeline at the Sapugaskanda Oil Refinery by CPC (Ceylon Petroleum Corporation) engineers.

However, renewed interest on the project re-surfaced during the tenure of the previous UNP government with then Minister Kabir Hashim presenting to the Cabinet a bid by Langfang-based China Petroleum Pipeline Bureau to build the pipeline at a cost of Rs. 15 billion.

A Malaysian company, which quoted Rs. 7.5 billion for the proposed project was disqualified at the time as its tender documents were apparently “not in order”.

Under the new dispensation, the CPSTL sought the cancellation of the tender awarded to the Chinese company as the CPC engineering team reached the conclusion that they can undertake the job after a new feasibility study and related research were conducted to find alternatives as the estimated Rs. 15 billion cost factor was enormous.

The project could be completed internally within 30 months at a cost of Rs. 5 billion, which translates into a saving of Rs. 10 billion for the country. However, with multiple alternate sources of energy in the offing, it has been determined that it was unviable to implement such a mega project at tremendous cost when another new 18-inch diameter pipeline would suffice to meet the demand.

It doesn’t make sense to call for international tenders to build pipelines when local engineers are capable of achieving the feat, industry officials said. “Of course, there are no fat commissions rolling in when these jobs are handled by Sri Lankan professionals”.

In what industry players described as a “strange twist”, there are continuing overtures to push through the pipeline project in a new game plan to perhaps line the pockets of some officials as the task could be completed for one-third of the estimated cost by local engineers. “With Rs. 10 billion to throw, there will be many on the gravy train if the deal works out!”.

Meanwhile, S. D. J. Paregama, secretary of the Sri Lanka Nidahas Sewaka Sangamaya (Petroleum Branch) expressed concern over moves to revive the project, which, he said, was a waste of public funds at a time the country’s economy was in bad shape.

“After our union wrote to President Rajapaksa on the futility of implementing this costly pipeline project, he directed that it be halted immediately”, he said.

After a bout of silence, there are subtle moves now to push ahead with the project with the Chinese bidder, he claimed.

“As a trade union which supported the President at the last election, we expect him to take a firm stand to ensure that public funds are not squandered on projects that are white elephants”, he emphasized.

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News

War-linked power crunch pushes Lanka to four-day week

Published

5 hours ago

2026/03/29

Thilina Walpola

(AFP ) Millions of Sri Lankans enjoyed a government-ordered extra day off on Wednesday as the island nation battles an energy crisis triggered by the Middle East war.

Rail and bus stations were largely deserted as most state institutions, schools and universities shifted to a four-day working week.

“I am really enjoying the mid-week break because it is a fully paid holiday,” said housing ministry official Prarthana Perera, 40.

Her office, like many government departments in Battaramulla — the capital’s main administrative hub — was closed.

Banks operated on shorter hours, while many private firms introduced work-from-home arrangements, industry bodies said, urging members to help curb energy use.

Sri Lanka has already raised fuel prices by a third since the United States and Israel began bombing Iran, triggering retaliatory attacks that have disrupted global energy supplies.

About half of Sri Lanka’s electricity is generated by coal and diesel.

The cabinet has set a target of cutting electricity consumption by 25 percent, ordering street lamps switched off and asking civil servants to use table fans instead of power-hungry air conditioners.

Shipping executive Varuna Perera welcomed the day off but was uncertain of its impact.

“It will not be effective in the long term,” Perera said. “But the government will have a breather for a couple of weeks, to save some energy.”

Environmental lawyer Ravindranath Dabare was more sceptical, arguing the move would have limited impact as those needing government services would have to travel on other days.

“We can’t close hospitals… the doctors and health officials can’t work from home,” Dabare said.

The influential Chamber of Commerce said it had urged members to follow government guidelines or adopt remote work where possible, if

“business continuity can be effectively maintained”.

And Sri Lanka’s leading technology firm WSO2 made working from home mandatory for its 500 employees on Tuesdays and Thursdays.

“This is our way of contributing to the national cause,” WSO2 spokeswoman Zaithoon Bin-Ahamed told AFP.

Media Minister Nalinda Jayatissa said the government had yet to assess the impact of the energy-saving measures, but expected broad compliance.

Sri Lanka has been running coal and diesel power plants at full capacity to meet electricity demand.

President Anura Kumara Dissanayake urged electric vehicle owners not to charge their cars overnight, as they would add a surge to an already strained grid.

He asked motorists instead to plug in during the day, when excess solar power is available.

Officials said the country’s diesel stocks are sufficient to last until mid-May, while petrol could last a week longer.

The government is seeking oil supplies from Russia and hopes to tap Iran for crude oil, Jayatissa said.

Political commentator Kusal Perera said the crisis also presented scope to boost productivity across the state sector.

“They must use this opportunity to have a national dialogue on improving productivity,” he told AFP. “We have to address the inefficiency in the public sector.”

By Amal JAYASINGHE

News

Lanka to swelter through April and May, Met Dept warns

Published

5 hours ago

2026/03/29

Thilina Walpola

Sri Lanka is set to experience continued hot weather conditions until May, the Department of Meteorology has warned.

Additional Director General of Meteorology Ajith Wijemanna said the current heatwave is expected to ease only slightly once the southwest monsoon sets in toward the latter part of May.

Wijemanna explained that the island is currently in the first inter-monsoon period, characterised by low wind speeds and shifting wind directions, which contribute to rising temperatures. Reduced cloud cover and the sun’s direct position over the country are causing increased heating of land and sea, generating heat waves and warmer atmospheric conditions.

He cautioned that the hottest period of the day will be between 11:00 a.m. and 4:00 p.m., urging the public to limit outdoor activities during these hours.

Authorities also advised drinking plenty of water, wearing light-colored clothing, and avoiding prolonged exposure to direct sunlight, particularly for children and the elderly.The Meteorology Department further noted that rainfall may remain limited in the coming months, with drier conditions possible due to climate variability.

News

Pathfinder Foundation launches Proposal for a National Security Strategy for Sri Lanka

Published

5 hours ago

2026/03/29

Thilina Walpola

The Pathfinder Foundation launched a proposal for a National Security Strategy for Sri Lanka—2026, emphasising the urgent need for a comprehensive and state-led national security framework.

The proposed strategy contends that an effective National Security Strategy (NSS) must be based on a robust National Security Policy, which provides the long-term framework for protecting the country’s sovereignty, stability, and development in an increasingly uncertain global environment. The Pathfinder Foundation’s initiative, developed through consultations with academics, retired military officers, legal experts, and policy specialists, seeks to stimulate national discussion and support the formulation of an official state policy. The launch event was attended by those involved in preparing this proposal, heads of local think tanks, and media representatives.

Chairman of the Pathfinder Foundation, Amb. (Retd.) Bernard Goonetilleke, in his presentation of the report, emphasised that many major and middle powers, including the United States, China, the Russian Federation, the United Kingdom, Germany, Sweden, and Japan, have developed formal national security strategies. He pointed out that several South Asian and Southeast Asian countries, including India, Pakistan, Bangladesh, Nepal, Malaysia, Thailand, and Singapore, also rely on NSS, whereas Sri Lanka still lacks a single, officially adopted National Security Policy (NSP) or a National Security Strategy to guide long-term strategic planning.

The report highlights key strategic priorities across several sectors, including good governance, internal security, cybersecurity, energy and food security, health security, human capital development, and environmental protection. It also employs the internationally recognised DIME framework (Diplomacy, Information, Military, and Economy) to guide the coordinated use of national power in advancing Sri Lanka’s interests. Among its main institutional recommendations are establishing a fully legislated National Security Council, creating a National Security Secretariat, and officially appointing a National Security Advisor to coordinate policy and implementation across the government.

The full text of the report is available https://pathfinderfoundation.org/publications, and your comments a/ welcome via pm@pathfinderfoundation.org