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Debt debate in the balance

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SJB alleges vital documents not accessible 

By Shamindra Ferdinando

Deputy Speaker Ajith Rajapaksa yesterday (07) said that a debate on the implementation of external debt restructuring agreements could be held if a fresh request was made to that effect.Rajapaksa said so when The Island asked him whether the hotly disputed external debt restructuring agreements would be debated soon. A vote on a resolution related to debt restructuring was to take place on July 03 following a two-day debate.

Deputy Speaker Rajapaksa said that the vote on a fresh resolution followed by debate would entirely depend on a consensus reached at the Committee on Parliamentary Business. However, the issue hadn’t been taken up yet.

President Ranil Wickremesinghe, in his capacity as the Finance Minister delivered his scheduled special statement in Parliament on July 02 claiming credit for paving the way for debt sustainability.

The Deputy Speaker said the debate scheduled for July 02 and 03 had been cancelled because the disclosure of certain details of agreements finalised with the Official Creditor Committee (OCC) and Export Import Bank of China on June 26 would be detrimental to Sri Lanka’s interests in discussions with international sovereign bondholders.

The Deputy Speaker said that now that the three levels of debt restructuring process had been completed the Parliament could debate and vote on a related resolution without hindrance.

State Finance Minister Shehan Semasinghe said that ISBs (International Sovereign Bonds) accounted for USD 12.5 billion out of the total external debt of USD 37 billion.  Therefore, the agreement with sovereign bondholders is a crucial step in government efforts to restore debt sustainability, he said.

The Committee on Parliamentary Business, which met on July 03 decided that the Parliament would meet from July 09 to 12. However, according to a statement issued by Parliament, the debate on the implementation of external debt restructuring agreements hadn’t been at least taken up.

Sources pointed out that SLPPer Shehan Semasinghe, in his capacity as the State Finance Minister, had been involved in the overall process and an influential section of the government parliamentary group, including Chief Government Whip Prasanna Ranatunga and Leader of the House Susil Premjayantha, declared their support for the debt restructuring process publicly.

Top Opposition spokesman Prof. G. L. Peiris yesterday told The Island though no dates had been requested for a fresh debate yet, the issue at hand would be considered at the next Parliamentary Business Committee. The former External Affairs Minister said that documents relating to all three agreements were yet to be made available to MPs.

State Minister Semasinghe recently told us that the Opposition sought political advantage at the expense of successful completion of the debt restructuring process. The bottom line is the Opposition and some other interested parties couldn’t stomach the success achieved by the government, Minister Semasinghe said, urging the public to be wary of the destructive strategies pursued by some elements, both in and outside parliament.

The Anuradhapura District lawmaker emphasized whatever various interested parties said the SLPP solidly backed President Wickremesinghe’s debt restructuring strategy as well as other policy measures in Parliament.



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Sun directly overhead Nittambuwa, Algama, Malwana, Aranayake, Meegahakiula and Panamkadu about 12.09 noon today (04)

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The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.

The nearest places of Sri Lanka over which the sun is overhead today (04) are Nittambuwa, Algama, Malwana, Aranayake, Meegahakiula and Panamkadu about 12.09 noon.

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Norochcholai digs into dwindling coal stocks, two units slash generation

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Plant’s output cut from 270 MW to 140 MW amidst dwindling stocks; energy analysts warn system remains “at a razor’s edge”

By Ifham Nizam

The Norochcholai coal-fired power plant is now digging into the last dredges of its coal stock, with two operational units forced to slash generation from around 270 MW to just 140 MW on Sunday as the plant ran critically short of fuel, according to independent energy analysts and sources familiar with the National System Operator (NSO).

The sudden reduction of approximately 130 MW in coal generation has once again exposed the fragile state of the country’s power supply arrangements, with the plant understood to have coal stocks sufficient only until Friday night.

“This is not how a coal plant is expected to operate. They are digging up the last dredges of coal from the plant,” an independent energy analyst told The Island.

The analyst questioned why the units had been allowed to reach this stage without earlier intervention, arguing that at least one unit should have been deloaded around 10 days ago to conserve the remaining coal.

Had that been done, the analyst said, the country could also have reduced its dependence on more expensive diesel-fired generation during the period when

coal stocks were being conserved.

The latest NSO generation figures highlight the continuing pressure on the system.

Around 7 p.m. on Sunday, when the night peak was reached, total demand stood at 2,552.7 MW. Coal contributed only 282 MW, while major hydro accounted for 1,215.8 MW and thermal-oil generation for 791.9 MW.

The night peak of 2,552.7 MW was substantially higher than the daytime peak of 2,246 MW, according to the NSO Generation Summary for August 30.

The most immediate concern is the remaining coal stock at Norochcholai.

Sources said the plant has coal only to Friday night, making the timing of the next shipment critical.

The first shipment under the emergency arrangement is expected to arrive on Friday, September 4, but the coal unloading will have to begin on the same day if

the power plant is to continue operating without further significant deloading.

That creates another potential vulnerability, with rough sea conditions posing an additional challenge to unloading operations.

Energy sector sources said that even the arrival of the September 4 shipment would not completely eliminate the danger.

The next shipment under the new coal tender would need to commence unloading around September 15. Any significant delay beyond that could again force the Norochcholai units to operate at reduced output.

“We are still at a razor’s edge”

The independent energy analyst said the situation should not be viewed merely as a question of whether a particular vessel arrives on time.

The situation also means that any further reduction in coal generation could have a direct impact on the use of oil-fired power generation, potentially increasing the cost of electricity generation.

The latest NSO figures already show the important role being played by thermal-oil generation during the evening peak, when demand rises sharply.

The analyst questioned the rationale behind allowing the coal units to continue operating at higher loading until stocks reached critically low levels instead of taking measures earlier to stretch the available inventory.

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22A: BASL decides against making written submissions after SC refuses to grant it right of reply

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The Bar Association of Sri Lanka (BASL) has informed the Supreme Court that it would not tender written submissions in respect of the petitions challenging the 22nd Amendment to the Constitution, which were heard on September 1 and 2.

The BASL said it had initially decided not to make written submissions after being deprived of the right of reply when the Solicitor General, appearing for the State, made submissions and explained the rationale and justification for the Bill.

The BASL pointed out that the Solicitor General, who made submissions at the end of the second day of the hearing, had not made a policy document available to the petitioners.

It also said the petitioners had not been given an opportunity to respond orally to the Solicitor General’s submissions or to address the Court on certain questions raised by the judges during their exchanges with the Solicitor General. (SF)

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