News

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

Published

6 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

Current El Niño Status in Sri Lanka

Published

10 hours ago

2026/07/16

Priyan

At present, El Niño conditions have developed and are classified as being at a weak level. Forecasts indicate a 63% probability of a very strong El Niño event developing during the period from November 2026 to January 2027. According to the National Oceanic and Atmospheric Administration (NOAA), there is approximately a one-third probability that El Niño will remain below a very strong intensity.

Typical Climatic Conditions Associated with El Niño
Based on analyses of past El Niño events that occurred between 1950 and 2025:
• Rainfall during July and August may be below normal, particularly in the dry zone areas.
• From October onward, rainfall is generally expected to be above normal.
• If a positive Indian Ocean Dipole (IOD) develops, enhanced rainfall conditions may continue until December.

Sectors Requiring Attention
• Appropriate measures should be taken for water resource management during July and August.
• Increased rainfall expected from October onward may lead to floods and landslides, requiring preparedness and close monitoring. The forecasts are important for sectors such as, Agriculture /Water management /Livestock /Health /Energy /Other climate-sensitive sectors
• Attention should be paid to official information issued by the Department of Meteorology.

Actions by the Department of Meteorology
The Department of Meteorology continuously monitors the evolving situation and issues:
• Weekly and monthly seasonal forecasts and Monthly analyses of rainfall data to monitor meteorological drought conditions.
As weather conditions are influenced not only by El Niño but also by other climatic factors, updated forecasts and advisories are regularly shared with relevant stakeholder organizations (Irrigation/ Water Management Committee /Department of Agriculture/National Building Research Institute/Disaster Management Centre (DMC)/Ministry of Health /Sri Lanka Land Development Corporation…etc). The Department also provides technical support to the committee established through a Cabinet decision to address climate-related impacts. The Department’s monthly rainfall outlook for July to September 2026 is attached

Monthly Rainfall Forecasts for July, August and September 2026
Month Rainfall forecast
July 2026

During July 2026, there is a higher probability of having near normal rainfall across most parts of the Western and Southern Provinces. The remainder of the country is expected to experience below normal rainfall.

August 2026

There is a higher probability of having below normal rainfall across most parts of the country during month of August 2026.

September 2026

There is a possibility of above-normal rainfall across most parts of the Western and Southern Provinces, while near-normal rainfall is expected in the Sabaragamuwa Province. Below-normal rainfall is likely in the remaining areas during September 2026.

Note: These long-range forecasts may change due to strong day-to-day atmospheric variability associated with the movement of weather systems such as atmospheric disturbances, low-pressure areas, and depressions, as well as intra-seasonal oscillations such as the Madden–Julian Oscillation (MJO). Therefore, in addition to the weekly and monthly forecasts, it is important to pay attention to the Department’s official announcements, weather advisories and warnings, as well as the daily weather forecasts issued by the Department of Meteorology.

News

Govt. move to extend retirement ages of top judges: Opp. complains to UN

Published

11 hours ago

2026/07/16

Sahan Weerasooriya

Prof. Peiris addresses the media outside the UN compound in Colombo on Thursday on the controversial government move to extend the retirement ages of Superior Court judges, while former MPs Thalatha Atukorale, Dr Suren Raghavan and Premanath C. Dolawatta look on.

Former External Affairs Minister Prof. G. L. Peiris yesterday (15) briefed the UN Resident Coordinator in Colombo, Marc-André Franche, on President Anura Kumara Dissanayake’s move to extend the retirement ages of the superior court judges and the delay in filling the vacancies in the Supreme Court and the Court of Appeal.

Prof. Peiris, the convenor of the People’s Joint Opposition, led the delegation that included UNP General Secretary and former Minister Thalatha Atukorale, former UPFA National List parliamentarian Suren Raghavan and ex- SLPP MP Premnath C. Dolawatta.

Having met the top official here, Prof. Peiris briefed the media on their decision to bring the developing situation to the notice of the UN.

Referring to the opposition of the legal fraternity to the NPP government’s plan, Prof. Peiris emphasised that the civil society, too, had opposed the politically motivated initiative.

Prof. Peiris said that instead of addressing the burning issues affecting the public, the government was creating new problems.

News

Dengue surge pushes hospitals to the brink as cases near 70,000

Published

11 hours ago

2026/07/16

Sahan Weerasooriya

A week-long crackdown to begin in 11 districts

Hospitals are coming under mounting pressure as the country’s dengue epidemic gathers pace, with nearly 70,000 infections and 48 deaths reported so far this year, prompting health authorities to launch an intensive week-long mosquito control campaign in 11 districts.

The National Dengue Control Unit (NDCU) said 69,951 dengue cases had been reported by July 13, with 14,572 new infections recorded during the first 13 days of July alone. June saw the highest monthly caseload of the year, underlining the rapid spread of the mosquito-borne disease during the southwest monsoon.

Acting Director of the NDCU, Dr. Kapila Kannangara, warned that the hospital system was facing severe congestion due to the unprecedented influx of dengue patients.

“We are seeing an alarming increase in admissions. Hospitals are under tremendous pressure, and public cooperation is essential to bring the outbreak under control,” he said, announcing that a special one-week dengue control programme would be implemented across 11 high-risk districts.

Health authorities have identified 175 Medical Officer of Health (MOH) divisions as high-risk dengue zones. Public Health Inspectors will conduct inspections, eliminate mosquito breeding sites and initiate legal action against those maintaining mosquito-infested premises.

The Western Province continues to account for the largest share of infections, with Gampaha and Colombo among the worst-affected districts. Several hospitals are already operating beyond capacity as the number of admissions continues to climb.

Health officials attributed the surge to intermittent rains, poor waste disposal, stagnant water collections and inadequate community participation in vector control programmes.

The Ministry of Health has appealed to local authorities, schools, workplaces, religious institutions and households to inspect their premises regularly, clear blocked drains and roof gutters, cover water storage containers and remove discarded tyres, cans, bottles and other containers capable of collecting rainwater.

Medical experts urged the public not to ignore symptoms such as persistent fever, severe headache, pain behind the eyes, vomiting, abdominal pain and bleeding manifestations, stressing that early medical treatment is critical in preventing severe dengue and deaths.

Officials emphasised that eliminating mosquito breeding sites remains the single most effective way of controlling dengue, warning that unless communities actively participate, the outbreak could worsen during the ongoing rainy season.

With daily case numbers continuing to rise and hospitals struggling to cope, health authorities said the coming weeks would be crucial in determining whether the country can curb one of its worst dengue outbreaks in recent years.

By Ifham Nizam